The two new benchmarks respond to demand for a narrower ESG‑focused portfolio, and for indices with alternative weighting concepts relevant to asset managers, ETF providers and structured product issuers.
The SPI ESG 25 represents a focused subset of the broader SPI ESG Index, enabling financial products that require highly liquid instruments. It selects 25 companies based on the highest combined scores in market capitalization, on-order-book turnover and ESG Impact Ratings provided by the independent Swiss sustainability rating company Inrate. Components are weighted by free‑float market capitalization and tilted by a factor reflecting their Inrate ESG rating. Only those companies that are part of the broader SPI ESG Index may qualify for the SPI ESG 25. That means that companies must have an Inrate ESG Impact Rating of at least C+ and comply with UNGC Principles and OECD Guidelines. They also cannot exceed a certain threshold of revenue from critical activities like adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, fossil fuels, and tobacco. At the same time, they cannot be recommended for exclusion by the Swiss Association for Responsible Investments (SVVK-ASIR). The largest four positions in the SPI ESG 25 are capped at 9%, all others at 4.5%. The index is reviewed annually in September and the weightings and ESG tilts adjusted quarterly.
The SMI Equal Weight offers a new perspective on Switzerland’s leading equity benchmark. The SMI’s 20 constituents receive an equal weight of 5% each, on a quarterly basis. The equal weighting approach is widely established in both the index and the fund management industries as a concentration risk-mitigating tool. Academic research highlights diversification benefits, systematic risk exposure and the rebalancing effect as drivers of performance in equal weight concepts. The alternative weighting complements the free float market capitalization weighted indices and the factor optimization strategies already available for various Swiss equity indices. SIX also offers customizations reflecting individual investors’ needs for different weighting and selection rules.
Dr. Christian Bahr, Head Index Services & ESG, Financial Information at SIX, said: “With these launches, SIX is further strengthening its ability to deliver tailored index solutions for clients both in Switzerland and internationally. Both indices are part of our broader strategy to expand our range of ESG-focused and alternative weighting solutions. Their introduction comes in a year of significant milestones: five years of SIX Swiss ESG Indices, five years of partnership with Inrate, and Inrate’s 25th anniversary.”
Further information about the SPI ESG 25 and the SMI Equal Weight.