The Swiss Market Index (SMI) is Switzerland’s blue-chip stock market index, which makes it the most important index of Swiss Shares. It is made up of twenty of the largest and most liquid SPI large- and mid-cap stocks. As a price index, the SMI is not adjusted for dividends. However, a performance index that takes account of dividends is available (the SMIC – SMI Cum Dividend).
The SMI was introduced on 30 June 1988 at a baseline value of 1500 points. Its composition is reviewed once a year, though speedily adjusted should an SMI company deregister. Calculation takes place in real-time: as soon as a new transaction occurs in a security contained in the SMI, the updated index level is calculated and displayed.
The securities contained in the SMI currently represent more than 90% of the entire market capitalisation, as well as of 90% trading volume, of all Swiss and Liechtenstein equities listed on the SIX Swiss Exchange. Because the SMI is considered to be a mirror of the overall Swiss stock market, it is used as the underlying index for numerous derivative financial instruments such as options, futures and index funds.
To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalisation. On one hand, it must represent at least 50% of the average liquidity of the SPI constituent issues and, on the other, have a minimum free-float capitalisation equal to 0.45% or more of the entire SPI capitalisation. Moreover, trading volume and capitalisation are the determining factors in the quarterly rankings. The composition of the index is reviewed annually on the third Friday in September.
The following 20 stocks make up the SMI index:
|Adecco||business training and employment agencies||Zurich||ADEN|
|Geberit||building materials and fixtures||St. Gallen||GEBN|
|Julius Baer Group||banks||Zurich||BAER|
|LafargeHolcim||building materials and fixtures||LHN|
|Richemont||clothing and accessories||Geneva||CFR|
|SGS||business support services||Geneva||SGSN|
|Swatch Group||timekeeping and accessories||Bern||UHR|
|Swiss Life||Life insurance||Zurich||SLHN|
|Zurich Insurance Group||full line insurance||Zurich||ZURN|
Rules governing the SMI Index Family