What is the Switzerland SMI 20 Index?
The Swiss Market Index, often referred to as the SMI, or the SMI20, is the A-list gathering of the biggest of Switzerland's stock market, spotlighting 20 major players.
A Brief Overview of the Switzerland SMI 20 Index
The Swiss Market Index, known as the SMI 20, is a good starting point for any investor looking to diversify into the Swiss market. It comprises 20 of Switzerland's most influential and liquid stocks. On top of that, the SMI-listed securities hold around 70% of the Swiss equity market's free-float capitalisation.
Who controls the SMI 20 Index?
The index is controlled by the SIX Swiss Exchange, Switzerland’s principal stock exchange, which is based in Zurich.
When was the Switzerland SMI 20 Index formed?
The Switzerland SMI 20 Index made its grand entrance in June 1988, arriving onto the global financial stage with a base level of 1,500 points.
Fast forward to today, and the SMI is still shaking things up. Its value is in constant flux, and is updated in real-time. Twice a year, its guest list of members gets reviewed and, if needed, fresh faces are welcomed into the elite club.
When did the SMI 25 become the SMI 20?
The SMI used to be a comprised of 25 companies, but it's all about quality over quantity. That’s why, in September 2007, the guest list was trimmed down to the 20 we know today.
The SMI Index is just one index offered by the SIX Swiss Exchange. Also on offer are the SMI, SMIM and SMI Expanded.
Key dates in the Switzerland SMI 20 Index’s history
Back in 2017, the SMI decided to give its heavyweight champs a chance at fair play. With ,Nestlé, Roche, and Novartis hogging over 60% of the limelight, new rules were introduced. No member gets to flex more than 18% of the index's muscles.
On 2 July July 2019, the index went past the 10,000-point milestone. Then two years later, on 17 June 2021, it breezed past the 12,000-point marker. However, 2022 saw a 20% decline for the SMI 20 Index.
In 2020, the SMI scored big by getting a stamp of approval from the European Union's Benchmarks Regulation. This makes it a star player, eligible for use as a financial product base in the EU.
The SMI has seen it all, from sky-high triumphs to stomach-churning dips. Dates like 21 July 1998, 4 June 2007, and 24 January 2018 saw all-time highs, while 5 October 1998, 12 March 2003, 9 March 2009, and 11 February 2016 marked the challenging lows.
In the dynamic landscape of Swiss finance, the Switzerland SMI 20 Index stands as the heavyweight champion, an accurate reflection of the nation's economic pulse. With its illustrious history, evolving rules, and significant impact on EU markets, the SMI is more than a stock index - it’s a true barometer of Switzerland's financial prowess.
