Swiss Market Index

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Swiss Market Index
Swiss Market Index.png
SMI performance between 1988 and 2012
Foundation 30 June 1988
Operator SIX Swiss Exchange
Exchanges SIX Swiss Exchange
Constituents 20
Type Large cap
Market cap CHF 783.1 billion (end 2009)[1]
Weighting
method
Market value-weighted
Related 
indices
SMI Mid, SMI Expanded
Website six-swiss-exchange.com

The Swiss Market Index (SMI) is Switzerland's blue-chip stock market index, which makes it the most important in the country. It is made up of 20 of the largest and most liquid Swiss Performance Index (SPI) large- and mid-cap stocks. As a price index, the SMI is not adjusted for dividends, but a performance index that takes account of such distributions is available (the SMIC - SMI Cum Dividend).

The SMI was introduced on 30 June 1988 at a baseline value of 1500 points. Its composition is examined once a year. Calculation takes place in real-time: as soon as a new transaction occurs in a security contained in the SMI, an updated index level is calculated and displayed.

The securities contained in the SMI currently represent more than 90% of the entire market capitalisation, as well as of 90% trading volume, of all Swiss and Liechtenstein equities listed on the SIX Swiss Exchange. Because the SMI is considered to be a mirror of the overall Swiss stock market, it is used as the underlying index for numerous derivative financial instruments such as options, futures and index funds (e.g. ETFs).

Rules[edit]

Acceptance criteria[edit]

To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalisation. On one hand, it must represent at least 50% of the average liquidity of the SPI constituent issues and, on the other, have a minimum free-float capitalisation equal to 0.45% or more of the entire SPI capitalisation. Moreover, trading volume and capitalisation are the determining factors in the quarterly rankings. The composition of the index is reviewed annually on the third Friday in September.

2007 restructuring[edit]

The SMI comprises a fixed number of 20 securities as of the ordinary review date in September 2007. Prior to this date, the index contained 25 listings. The ranking as of 30 June 2007 (according to average capitalisation and the turnover achieved during one year, i.e. from 1 July 2006 through 30 June 2007) determined which companies would remain within the SMI. On 5 July 2007, SWX announced that Ciba Specialty Chemicals, Lonza Group, Givaudan, SGS and one of the two classes of shares of Swatch Group would leave the SMI as of 24 September 2007 leaving 20 securities in the index.[2]

Constituents[edit]

Distribution of SMI expanded index firms by canton of HQ
Distribution of SMI expanded index market capitalization by canton of HQ

The following 20 stocks make up the SMI index.[3]

Company ICB Sector Canton Ticker symbol Index weighting (%)1
ABB electronic equipment Zurich ABBN 4.35
Actelion biotechnology Basel ATLN 1.20
Adecco business training and employment agencies Zurich ADEN 1.23
Credit Suisse banks Zurich CSGN 3.26
Geberit building materials and fixtures St. Gallen GEBN 1.18
Givaudan specialty chemicals Geneva GIVN 1.39
Holcim building materials and fixtures St. Gallen HOLN 1.53
Julius Baer Group banks Zurich BAER 0.91
Nestlé food products Vaud NESN 22.05
Novartis pharmaceuticals Basel NOVN 23.03
Richemont clothing and accessories Geneva CFR 4.03
Roche pharmaceuticals Basel ROG 16.71
SGS business support services Geneva SGSN 0.97
Swatch Group clothing and accessories Bern UHR 1.23
Swiss Re reinsurance Zurich SREN 2.76
Swisscom fixed line telecommunications Bern SCMN 1.27
Syngenta specialty chemicals Basel SYNN 2.87
Transocean oil equipment and services Geneva RIGN 0.49
UBS banks Zurich UBSN 5.33
Zurich Insurance Group full line insurance Zurich ZURN 4.19

^Note 1 : - Weightings accurate on February 2015.

Notes and references[edit]

  1. ^ "SMI Family – Factsheet" (PDF). SIX Swiss Exchange. February 2010. Retrieved 20 June 2010. 
  2. ^ "SWX Indices: Adjustments to SMI, SMIM and SLI composition and SPI Small/Mid/Large breakdown" (PDF) (Press release). SWX Swiss Exchange. 2007-07-05. Retrieved 2007-07-18. 
  3. ^ "Statistical Monthly Report – February 2015" (PDF). SIX Swiss Exchange. Retrieved 2015-04-14. 

External links[edit]