Indices Details

US30 (Dow Jones Industrial Average)

This key index is comprised of 30 large, publicly traded companies in the US. Since it is price-weighted, the companies with larger share prices would have greater impact over its value.

SPX500 (US S&P 500)

Because it is float-weighted, the constituent stocks impact the index’s overall value based on their market capitalisation and float (i.e., the percentage of the company that is publicly traded).

It is also a price-return index, whereby dividends are not accounted for. Since its components are determined by the US Index Committee, all stocks listed must meet these criteria:

• At least USD4 billion of market capitalisation

• Annual dollar value traded to float-adjusted market capitalisation is greater than 1.0

• Minimum monthly trading volume of 250,000 shares in the six months leading up to evaluation date

• Securities listed on the New York Stock Exchange or NASDAQ

UK100 (FTSE)

It is a list of the 100 companies with the highest market capitalisation on the London Stock Exchange. In other words, these companies are the 100 most valuable on the stock exchange. It is a market-weighted index, meaning its value is proportional to its constituent companies. Larger companies have greater impact on its value than smaller ones.

AUS200 (ASX 200)

The index uses the same metrics employed by other common indices from Standard & Poor’s, such as the US S&P 500. For instance, the index is capitalisation-weighted; therefore, constituent companies with a higher market capitalisation will impact it more.

Moreover, because it is float-adjusted, companies with a larger percentage of publicly traded shares would have a greater impact on the index. It also has minimum liquidity requirements, and considers only stocks listed on the Australian Stock Exchange, which are selected by a Standard & Poor’s committee.

FRA40 (CAC 40)

Known in full as the “Cotation Assistée en Continu,” it refers to the stocks listed on France’s Euronext Paris (“Paris Bourse”) stock exchange. They are selected by an independent committee quarterly, out of the 100 companies with the highest free float market capitalisation (i.e., the highest market value that is publicly traded). Another factor to consider is stocks that are actively traded and suitable for underlying derivative products. Because it is capitalisation-weighted, stocks with a larger market capitalisation impact the index’s value more.

GER40 (DAX)

The “Deutscher Aktienindex” is an index made up of the 40 major stocks in Germany on the Frankfurt Stock Exchange. As a result, it is similar to the Dow Jones Industrial Average of the US in this regard.

ESTX50 (Euro Stoxx 50)

This index covers the 50 leading stocks across Europe. Because it is free float market capitalisation-weighted, the most valuable companies with the largest percentage of publicly traded shares impact the index’s value the most. However, no individual stocks can account for more than 10% of the index’s total value.

JPN225 (Nikkei 225)

It is the primary stock index on the Tokyo Stock Exchange. As it is price-weighted, the index is similar to the Dow Jones Industrial Average of the US. In fact, between 1975 and 1985 it was referred to as the “Nikkei Dow Jones Stock Average.” The index’s components are reviewed annually.