Swiss Market Index

Swiss Market Index
SMI performance between 1988 and 2008
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)
Weighting method	Market value-weighted
Related  indices	SMI Mid, SMI Expanded
Website	at 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 twenty of the largest and most liquid 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

Acceptance criteria

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

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.

Constituents

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 after the replacement of Lonza Group with Givaudan effective 19 September 2011.

Company	ICB Sector	Ticker symbol	Index weighting (%)1
ABB	electronic equipment	ABBN	5.75
Actelion	biotechnology	ATLN	0.58
Adecco	business training and employment agencies	ADEN	0.76
Credit Suisse	banks	CSGN	3.87
Givaudan	specialty chemicals	GIVN	0.92
Holcim	building materials and fixtures	HOLN	1.87
Julius Baer Group	banks	BAER	1.03
Nestlé	food products	NESN	24.60
Novartis	pharmaceuticals	NOVN	19.44
Richemont	clothing and accessories	CFR	3.54
Roche	pharmaceuticals	ROG	14.50
SGS	business support services	SGSN	1.17
Swatch Group	clothing and accessories	UHR	1.56
Swiss Re	reinsurance	RUKN	2.25
Swisscom	fixed line telecommunications	SCMN	1.18
Syngenta	specialty chemicals	SYNN	3.57
Synthes	medical equipment	SYST	1.60
Transocean	oil equipment and services	RIGN	2.16
UBS	banks	UBSN	5.45
Zurich Financial	full line insurance	ZURN	4.19

^Note 1 : - Weightings accurate on 18 October 2011.

See also

• SIX Swiss Exchange
• Swiss Performance Index

External links

• SMI rules
• SWX release on index restructuring
• New equity index selection list
• SMI basket
• Share Indices at SWX Swiss Exchange
• SWX-Homepage