In This article we will give a brief idea about EURO STOXX 50 and STOXX Europe 600.
EURO STOXX 50
The EURO STOXX 50 is a stock index of Euro zone stocks designed by STOXX, an index provider owned by Deutsche Börse Group.
According to STOXX, its goal is “to provide a blue-chip representation of Super-sector leaders in the Euro zone”.
In fact, it is made up of fifty of the largest and most liquid stocks.
Moreover, The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid such products in Europe and the world.
The EURO STOXX 50 was introduced on 26 February 1998.
However, Its composition is reviewed annually in September.
The index is available in several currency (EUR, USD, CAD, GBP, JPY) and return (Price, Net Return, Gross Return) variant combinations.
Furthermore, Calculation takes place every 15 seconds between 09:00 CET and 18:00 CET for the EUR and USD variants of any return type, while the CAD, GBP and JPY variants are available as end-of-day calculation only (18:00 CET).
The EURO STOXX 50 Index is derived from the 19 EURO STOXX regional Super sector indices and represents the largest super-sector leaders in the Euro zone in terms of free-float market capitalisation.
The index captures about 60% of the free-float market capitalisation of the EURO STOXX Total Market Index (TMI), which in turn covers about 95% of the free-float market capitalisation of the represented countries.
The EURO STOXX 50 serves as the basis for single sub-indices such as the EURO STOXX 50 ex Financials, which excludes all companies assigned to the ICB code 8000.
It is one of the most liquid indices for the Euro zone:
an ideal underlying for financial products or for bench-marking purposes.
Additionally, the index serves as an underlying for many strategy indices, such as the EURO STOXX 50 Risk Control Indices.
Buffers are used to achieve the fixed number of components and to maintain stability of the indices by reducing index composition changes.
Selection methodology ensures a stable and up-to-date index composition. Fast-entry and fast-exit rules ensure the index accurately represents the performance of only the biggest and most liquid stocks.
The following table shows the end-of-year values of the Euro Stoxx 50 index since 1986.
A record closing high of 5,464.43 was recorded on 6 March 2000.
STOXX Europe 600
The STOXX Europe 600, also called STOXX 600, SXXP, is a stock index of European stocks designed by STOXX Ltd.
This index has a fixed number of 600 components representing large, mid and small capitalisation companies among 17 European countries, covering approximately 90% of the free-float market capitalisation of the European stock market (not limited to the Euro zone).
The countries that make up the index are the United Kingdom (comprising around 27% of the index) France, Germany and Switzerland(accounting for around 15% of the index each), as well as Austria, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, and Sweden.
The STOXX Europe 600 was introduced in 1998.
Its composition is reviewed four times a year, in March, June, September, December.
The index is available in several currency (AUD, CAD, CHF, EUR, GBP, JPY, USD) and return (Price, Net Return, Gross Return) variant combinations.
It is licensed to financial institutions to serve as underlying for a wide range of investment products such as exchange-traded funds (ETFs), futures, options, and structured products worldwide.
According to Wikipedia