SLI® – the Swiss share index with capped weightings
The SLI Swiss Leader Index comprises the SMI shares plus the 10 largest stocks in the SMIM. In
other words, it includes the 30 largest and most liquid securities in the Swiss equity market.
Since 02.07.2007, the SLI has been calculated and published in real time. To facilitate
comparability with other indices, the SLI was calculated back to the end of 1999. The SLI was
standardised at 1000 index points as of 30 December 1999.Unlike the other indices, the SLI has
an upper weighting limit. The four largest stocks are capped at 9%. Where
necessary, the index weighting of the other securities is limited to 4.5%.
The SLI was launched as an alternative to the blue chip SMI index. The SMI has the disadvantage
that the five largest stocks have a combined index weighting of about 70%,
so price fluctuations in those shares have a disproportionate impact on the index. The capping
factor in the SLI increases the weighting of the smaller stocks, so the price risk is more widely
diversified. Moreover, as a result of the capping factor, the SLI fulfils the regulatory requirements
of Switzerland, the EU and the USA, thereby allowing new markets and investor groups to be accessed.
Because the weightings change continuously, SIX Swiss Exchange calculates and adjusts the capping factor every
three months. hide