Swiss and European Indices

An index combines a defined selection of securities into a single value and measures how that market, segment or strategy develops. An equity index can cover large Swiss companies, the broader market, smaller companies or securities selected according to sustainability criteria.

The SMI and SPI measure different parts of the Swiss equity market. The SMI contains the 20 largest and most liquid Swiss shares and is a price index, so dividends are not included. The SPI covers more than 200 companies from Switzerland and Liechtenstein and represents almost the entire Swiss equity market. Its commonly referenced performance-index version incorporates dividends.

Indices provide reference points for measuring market performance, comparing portfolios and observing trends. They are used for benchmarking, research and risk management and serve as underlyings for ETFs, index funds, structured products and derivatives. See the overview of Swiss stock indices.

No. An index is a calculated benchmark rather than a security. Investors can obtain exposure through ETFs, index funds, structured products and derivatives. These products have different costs, risks and tracking characteristics. The article on Swiss indices provides examples.

Selection follows the published methodology for the index. For major Swiss equity indices, criteria can include free-float market capitalization and trading volume. Composition is reviewed at defined intervals, while mergers or delistings can lead to extraordinary adjustments. See SMI, SPI, SMIM and other Swiss indices.

An index can be a benchmark or the underlying of an investment product. An ETF may replicate an index by holding its constituents, while a structured product can link its payoff to whether the index rises, falls or remains above a barrier. See How Does an ETF Come into Being?