Euro Stoxx 50

EURO STOXX 50 Index

Foundation	26 February 1998
Operator	STOXX
Constituents	50
Type	Mega cap
Market cap	€1.962 trillion (March 2016)[1]
Weighting method	Free-float market capitalization
Related indices	STOXX Europe 50
Website	stoxx.com

The EURO STOXX 50 is a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group and SIX Group. According to STOXX, its goal is "to provide a blue-chip representation of Supersector leaders in the Eurozone". It is made up of fifty of the largest and most liquid stocks. The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid such products in Europe and the world.

The EURO STOXX 50 was introduced on 26 February 1998. Its composition is reviewed annually in September. The index is available in several currency (EUR, USD, CAD, GBP, JPY) and return (Price, Net Return, Gross Return) variant combinations. Calculation takes place every 15 seconds between 09:00 CET and 18:00 CET for the EUR and USD variants of any return type, while the CAD, GBP and JPY variants are available as end-of-day calculation only (18:00 CET).

The EURO STOXX 50 Index is derived from the 19 EURO STOXX regional Supersector indices and represents the largest super-sector leaders in the Eurozone in terms of free-float market capitalization. The index captures about 60% of the free-float market capitalization of the EURO STOXX Total Market Index (TMI), which in turn covers about 95% of the free-float market capitalizaion of the represented countries.

The EURO STOXX 50 serves as the basis for single sub-indices such as the EURO STOXX 50 ex Financials, which excludes all companies assigned to the ICB code 8000. It is one of the most liquid indices for the Eurozone: an ideal underlying for financial products or for benchmarking purposes. Additionally, the index serves as an underlying for many strategy indices, such as the EURO STOXX 50 Risk Control Indices. Buffers are used to achieve the fixed number of components and to maintain stability of the indices by reducing index composition changes. Selection methodology ensures a stable and up-to-date index composition. Fast-entry and fast-exit rules ensure the index accurately represents the performance of only the biggest and most liquid stocks.

Development

Performance of the Euro Stoxx 50 stock market index since 1998 (end-of-year points)^[2]

The following table shows the end-of-year values of the Euro Stoxx 50 index since 1986.^[3]

A record closing high of 5,464.43 was recorded on 6 March 2000.

Year	No. of points	Change, in points	Change, in pct.
1986	900,82
1987	648,13	-252,69	-28,05
1988	861,36	213,23	32,90
1989	1098,49	237,13	27,53
1990	858,72	-239,77	-21,83
1991	1000,00	141,28	16,45
1992	1033,51	33,51	3,35
1993	1433,34	399,83	38,69
1994	1320,59	-112,75	-7,87
1995	1506,82	186,23	14,10
1996	1850,32	343,50	22,80
1997	2531,99	681,67	36,84
1998	3342,32	810,33	32,00
1999	4904,46	1562,14	46,74
2000	4772,39	-132,07	-2,69
2001	3806,13	-966,26	-20,25
2002	2386,41	-1419,72	-37,30
2003	2760,66	374,25	15,68
2004	2951,24	190,58	6,90
2005	3578,93	627,69	21,27
2006	4119,94	541,01	15,12
2007	4399,72	279,78	6,79
2008	2451,48	-1948,24	-44,28
2009	2966,24	514,76	21,00
2010	2792,82	-173,42	-5,85
2011	2316,55	-476,27	-17,05
2012	2635,93	319,38	13,79
2013	3109,00	473,07	17,95
2014	3146,43	37,43	1,20
2015	3267,52	121,09	3,85

Calculation

The calculation of the indices employ the Laspeyres formula (see STOXX Calculation Guide), which measures price changes against a fixed base quantity weight:

$Index_t=\frac{\displaystyle \sum_{i=1}^n (p_{it}\cdot s_{it}\cdot ff_{it}\cdot cf_{it}\cdot x_{it})}{D_{t}}=\frac{M_{t}}{D_{t}}$

where:

t = Time the index is computed

n = Number of companies in the index

p_it = Price of company (i) at time (t)

s_it = Number of shares of company (i) at time (t)

ff_it = Free float factor of company (i) at time (t)

cf_it = Weighting cap factor of company (i) at time (t)

x_it = Exchange rate from local currency into index currency for company (i) at time (t)

M_t = Free-float market capitalization of the index at time (t)

D_t = Divisor of the index at time (t)

Changes in weights due to corporate actions are distributed proportionally across all index components. The index divisors, which is adjusted to maintain the continuity of the values of the index across changes due to corporate actions, are calculated as follows:

$D_{t+1}=D_t \cdot \frac{\displaystyle \sum_{i=1}^n (p_{it}\cdot s_{it}\cdot ff_{it}\cdot cf_{it}\cdot x_{it})\pm \Delta MC_{t+1}}{\displaystyle \sum_{i=1}^n (p_{it}\cdot s_{it}\cdot ff_{it}\cdot cf_{it}\cdot x_{it})}$

where ΔMC_t+1 = The difference between the closing market capitalization of the index and the adjusted closing market capitalization of the index: for companies with corporate actions effective at time (t+1), the free-float market capitalization is calculated with adjusted closing prices, the new number of shares at time (t+1) and the free-float factor at time (t+1) minus the free-float market capitalization calculated with closing prices, number of shares at time (t) and free-float factor at time (t).

Composition

As of October 2015, Euro Stoxx 50 consists of the following companies:^[4]

Name	Corporate form	Registered office	Industry	Index weighing [%]
Air Liquide	Société Anonyme	Paris	Chemistry
Airbus Group	Societas Europaea	Amsterdam	Aerospace
Allianz	Societas Europaea	Munich	Insurance
Anheuser-Busch InBev	Société Anonyme/Naamloze vennootschap	Belgium	Food and beverage
ASML Holding	Naamloze vennootschap	Netherlands	Technology
Assicurazioni Generali	Società per azioni	Trieste	Insurance
AXA	Société Anonyme	Paris	Insurance
Banco Bilbao Vizcaya Argentaria	Sociedad Anónima	Spain	Banking
Banco Santander Central Hispano	Sociedad Anónima	Spain	Banking
BASF	Societas Europaea	Germany	Chemistry
Bayer	Aktiengesellschaft	Germany	Chemistry
BMW	Aktiengesellschaft	Germany	Automotive industry
BNP Paribas	Société Anonyme	France	Banking
Carrefour	Société Anonyme	France	Retail
Compagnie de Saint-Gobain	Société Anonyme	France	Construction and materials
Daimler AG	Aktiengesellschaft	Germany	Automotive industry
Deutsche Bank	Aktiengesellschaft	Germany	Banking
Deutsche Post	Aktiengesellschaft	Germany	Logistics
Deutsche Telekom	Aktiengesellschaft	Germany	Telecommunication
Enel	Società per azioni	Italy	Electric utility
Engie	Société Anonyme	France	Electric utility
Eni	Società per azioni	Italy	Petroleum
E.ON	Societas Europaea	Germany	Electric utility
Essilor International	Société Anonyme	France	Pharmaceutical industry
Fresenius SE	Societas Europaea	Germany	Health care equipment
Groupe Danone	Société Anonyme	France	Food and beverage
Iberdrola	Sociedad Anónima	Spain	Electric utility
Inditex	Sociedad Anónima	Spain	Retail
ING Group NV	Naamloze vennootschap	Netherlands	Insurance
Intesa Sanpaolo	Società per azioni	Italy	Banking
L'Oréal	Société Anonyme	France	Personal and household goods
LVMH Moët Hennessy Louis Vuitton	Societas Europaea	France	Personal and household goods
Munich Re	Aktiengesellschaft	Germany	Insurance
Nokia	Julkinen osakeyhtiö	Finland	Technology
Orange S.A.	Société Anonyme	France	Telecommunication
Philips	Naamloze vennootschap	Netherlands	Personal and household goods
Safran	Société Anonyme	France	Aerospace
Sanofi	Société Anonyme	France	Pharmaceutical industry
SAP SE	Societas Europaea	Germany	Technology
Schneider Electric	Societas Europaea	France	Goods and Services
Siemens	Aktiengesellschaft	Germany	Goods and Services
Société Générale SA	Société Anonyme	France	Banking
Telefonica	Sociedad Anónima	Madrid	Telecommunication
TOTAL S.A.	Société Anonyme	France	Petroleum
Unibail-Rodamco	Societas Europaea	France	Real estate
UniCredit	Società per azioni	Italy	Banking
Unilever	Naamloze vennootschap/ Public limited company	Netherlands/ United Kingdom	Food and beverage
Vinci SA	Société Anonyme	France	Construction and materials
Vivendi	Société Anonyme	Paris	Media
Volkswagen Group	Aktiengesellschaft	Germany	Automotive industry

See also

• STOXX Europe 50 (a similar index not limited to the Eurozone)

References

1. "EURO STOXX 50 website". STOXX. Retrieved 26 March 2016.
2. http://www.boerse.de/historische-kurse/Euro-Stoxx-50/EU0009658145
3. http://www.boerse.de/historische-kurse/Euro-Stoxx-50/EU0009658145
4. Frankfurt Stock Exchange

External links

• EURO STOXX 50 page
• EURO STOXX 50 Fact sheet
• STOXX Index Methodology Guide
• Bloomberg page for SX5E:IND
• Yahoo! Finance page for ^STOXX50E
• Euro Stoxx 50 | Index | 965814 | EU0009658145 | Börse Frankfurt (Frankfurt Stock Exchange)