Swiss Market Index
Encyclopedia
The Swiss Market Index 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 stock
s. 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 fund
s (e.g. ETF
s).
. 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.
, 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.
with Givaudan
effective 19 September 2011.
: - Weightings accurate on 18 October 2011.
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
's blue-chip stock market index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
, which makes it the most important in the country. It is made up of twenty of the largest and most liquid
Market liquidity
In business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value...
SPI large- and mid-cap stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
s. 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
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
financial instruments such as options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
, futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
and index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
s (e.g. ETF
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s).
Acceptance criteria
To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalisationMarket capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
. 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 ChemicalsCiba Specialty Chemicals
Ciba was a chemical company based in and near Basel, Switzerland. "Ciba" stood for "Chemische Industrie Basel" . It was formed as the non-pharmaceuticals elements of Novartis were spun out in 1997, following the merger in the previous year of Ciba-Geigy and Sandoz that created Novartis.In 2008,...
, Lonza Group
Lonza Group
Lonza Group is a Swiss chemicals and biotechnology company, headquartered in Basel. The firm provides a number of products and services to the pharmaceutical and life science industries, including organic fine and performance chemicals, custom manufacturing of biopharmaceuticals, chemical synthesis...
, Givaudan
Givaudan
Givaudan is a Swiss manufacturer of flavorings and fragrances. As of 2008, it is the world's largest company in the industry.-Background:The company's scents and flavors are developed most often for food and beverage makers, but they are also used frequently in household goods, as well as grooming...
, SGS
Société Générale de Surveillance
SGS S.A. provides inspection, verification, testing and certification services. With more than 67,000 employees, SGS operates of over 1,250 offices and laboratories around the world....
and one of the two classes of shares of Swatch Group
The Swatch Group Ltd.
The Swatch Group Ltd. is a Swiss company and watch manufacturer. It was formed in 1983 through the merging of the two Swiss watch manufacturers ASUAG and SSIH, and took its present name in 1998 . The company is led by G...
would leave the SMI as of 24 September 2007 leaving 20 securities in the index.
Constituents
The following 20 stocks make up the SMI index after the replacement of Lonza GroupLonza Group
Lonza Group is a Swiss chemicals and biotechnology company, headquartered in Basel. The firm provides a number of products and services to the pharmaceutical and life science industries, including organic fine and performance chemicals, custom manufacturing of biopharmaceuticals, chemical synthesis...
with Givaudan
Givaudan
Givaudan is a Swiss manufacturer of flavorings and fragrances. As of 2008, it is the world's largest company in the industry.-Background:The company's scents and flavors are developed most often for food and beverage makers, but they are also used frequently in household goods, as well as grooming...
effective 19 September 2011.
| Company | ICB Industry Classification Benchmark The Industry Classification Benchmark is an industry classification taxonomy developed by Dow Jones and FTSE. It is used to segregate markets into sectors within the macroeconomy... Sector | Ticker symbol | Index weighting (%)1 |
|---|---|---|---|
| ABB | electronic equipment | 5.75 | |
| Actelion Actelion Actelion was founded in December 1997 and is headquartered in Allschwil near Basel . Its CEO and co-founder is cardiologist Jean-Paul Clozel. Actelion scientists were among the first to work in the field of endothelian receptor antagonists... |
biotechnology | 0.58 | |
| Adecco Adecco Adecco S.A. is a human resources company, based in Glattbrugg near Zurich, Switzerland. Adecco employs 700,000 temporary workers and contractors who are supplied to business clients, and has over 32,000 employees and 5,500 offices in 60 countries and territories around the world... |
business training and employment agencies | 0.76 | |
| Credit Suisse Credit Suisse The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:... |
banks | 3.87 | |
| Givaudan Givaudan Givaudan is a Swiss manufacturer of flavorings and fragrances. As of 2008, it is the world's largest company in the industry.-Background:The company's scents and flavors are developed most often for food and beverage makers, but they are also used frequently in household goods, as well as grooming... |
specialty chemicals | 0.92 | |
| Holcim Holcim Holcim is a Swiss-based global company supplying cement and aggregates . The company also supplies ready-mix concrete and asphalt including associated construction services.-Holcim Group:... |
building materials and fixtures | 1.87 | |
| Julius Baer Group Julius Baer Group Julius Bär Group is a Swiss banking firm which is the parent company of Bank Julius Bär, a traditional private bank based in Zurich, Switzerland. The firm dates itself back to the year 1890, when an exchange office was founded by Ludwig Hirschhorn und Theodor Grob. Joseph Michael Uhl and Julius... |
banks | 1.03 | |
| Nestlé Nestlé Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri... |
food products | 24.60 | |
| Novartis Novartis Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry... |
pharmaceuticals | 19.44 | |
| Richemont Richemont Compagnie Financière Richemont S.A. is a Swiss luxury goods holding company founded in 1988 by the South African businessman Johann Rupert. Richemont categorizes its businesses into four areas: jewellery, watch making, writing instruments and other, which encompasses clothing and firearms. The... |
clothing and accessories | 3.54 | |
| Roche | pharmaceuticals | 14.50 | |
| SGS Société Générale de Surveillance SGS S.A. provides inspection, verification, testing and certification services. With more than 67,000 employees, SGS operates of over 1,250 offices and laboratories around the world.... |
business support services | 1.17 | |
| Swatch Group | clothing and accessories | 1.56 | |
| Swiss Re Swiss Re Swiss Reinsurance Company Ltd , generally known as Swiss Re, is a Swiss reinsurance company. It is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions. The company has its headquarters in Zurich... |
reinsurance | 2.25 | |
| Swisscom Swisscom Swisscom AG is a major telecommunications provider in Switzerland. Along with Swiss Post, it is a successor company to the former state-owned PTT. Its headquarters are located at Worblaufen near Bern... |
fixed line telecommunications | 1.18 | |
| Syngenta Syngenta Syngenta AG is a large global Swiss agribusiness company which notably markets seeds and pesticides. Syngenta is involved in biotechnology and genomic research. The company is a leader in crop protection, and ranks third in total sales in the commercial agricultural seeds market. Sales in 2010 were... |
specialty chemicals | 3.57 | |
| Synthes Synthes Synthes Holding AG is a multinational medical device manufacturer based in Solothurn, Switzerland and West Chester, Pennsylvania, United States. It is the world's largest maker of implants to mend bone fractures, and also produces surgical power tools and advanced biomaterials... |
medical equipment | 1.60 | |
| Transocean Transocean Transocean Ltd. is one of the world's largest offshore drilling contractors. The company rents floating mobile drill rigs, along with the equipment and personnel for operations, to oil and gas companies at an average daily rate of US$282,700... |
oil equipment and services | 2.16 | |
| UBS UBS AG UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland... |
banks | 5.45 | |
| Zurich Financial Zurich Financial Services Zurich Financial Services AG is a major financial services group based in Zurich, Switzerland.-History:The Company was founded in 1872 as subsidiary of the Schweiz Marine Insurance Company under the name Versicherung Verein... |
full line insurance | 4.19 |
: - Weightings accurate on 18 October 2011.