STOXX

What Is STOXX?

STOXX, a subsidiary of Deutsche-Borse Group (stock symbol: DBOEF), is a leading provider of market indexes that are representative of European and global markets. A portion of the more eminent indexes given by STOXX incorporate Euro Stoxx 50, Stoxx Euro 600, Euro Stoxx 50 ESG, and the Stoxx Global 1800.

Figuring out STOXX

Indices given by STOXX cover an extensive variety of equity market fragments, including the broad market, blue chips, individual sectors, and global indexes.

While global indexes are additionally included, the majority of STOXX indices place an accentuation on the European market. The STOXX indices were made out of a joint venture between Dow Jones, Deutsche-Borse AG, and the SIX Group (formerly SWX Group) in 1997 and sent off their most memorable products in 1998.

The STOXX indexes have since become very well known and are tradable on the futures and options market, and are additionally utilized as benchmarks for funds that trade in the European and global markets. The indices are licensed to in excess of 500 companies globally, which incorporate the world's largest financial products issuers, capital owners, and asset managers. STOXX indices are utilized not just as underlying instruments for financial products, like ETFs, futures and options, and structured products yet additionally for risk and performance measurement.

Moreover, STOXX Ltd. is the marketing agent for DAX indices in Germany and the SIX index in Switzerland. STOXX has profited from the recent rise in interest in passive investing of indexed funds, where several of their indexes are employed as the benchmarks to be repeated.

The Euro Stoxx 50 Index

The most famous of their many index offerings — and which may now be the most well known European stock market index overall — is the blue-chip Euro Stoxx 50, which gives a way to investors to follow and invest in the largest 50 stocks in the eurozone. The components of the index are chosen by positioning each company in the 19 Euro Stoxx "Super-sector" indexes by free-float adjusted market capitalization.

The Euro Stoxx 50 index covers stocks from 8 eurozone countries: Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, and Spain. The Euro Stoxx 50 Index is licensed to financial institutions to act as an underlying for a large number of investments like futures, options, and exchange-traded funds (ETF).

The 40 largest companies that partake in these 19 indexes are consequently picked as components of the Euro Stoxx 50 index. The excess 10 are chosen by a committee from among the 41st to 60th positioned companies, with preference given to existing components to reduce turnover.

The index is explored in September of every year, except there are criteria that can turn over components sooner, like a bankruptcy, merger, or generally slipping from the positions of the main 75 in terms of overall market capitalization.

Several single-country sub-indices are derived from the Euro Stoxx 50 Index. They incorporate Euro Stoxx 50 Subindex France, Euro Stoxx 50 Subindex Germany, Euro Stoxx 50 Subindex Italy, Euro Stoxx 50 Subindex Netherlands, and Euro Stoxx 50 Subindex Spain. Every one covers Euro Stoxx 50 components from the indicated country.

As of June 10, 2021, a portion of the components in the Euro Stoxx 50 included (sector and the nation of origin likewise listed):

ASML Holding: Technology, Netherlands
LVMH Moet Hennessy: Consumer products and services, France
SAP: Technology, Germany
Linde: Chemicals, Germany
Total Energies: Energy, France
Siemens: Industrial goods, Germany
Sanofi: Health care, France
Allianz: Insurance, Germany
Schneider Electric: Industrial goods and services, France
Air Liquide: Chemicals, France
Daimler: Automobiles and parts, Germany
BNP Paribas: Banks, France
Airbus: Industrial goods and services, France
Enel: Utilities, Italy
Iberdrola: Utilities, Spain
BASF: Chemicals, Germany
Banco Santander: Banks, Spain
Deutsche Telekom: Telecommunications, Germany

Investing in the Euro STOXX 50 Index

Exchange-traded funds (ETFs) are the least difficult method for getting exposure to the Euro Stoxx 50 Index. While mutual funds as a rule come with high management fees, ETFs can be bought and sold with somewhat low management fees.

The two most well known Euro Stoxx 50 ETFs are the SPDR Euro Stoxx 50 ETF (NYSE: FEZ) and the iShares Euro Stoxx 50 ETF (EUE).

Other well known ways of gaining exposure to major European stocks include:

The Vanguard MSCI Europe ETF (VGK)
The iShares S&P Europe 350 Index (IEV)
The iShares MSCI EMU Index (EZU)

Of course, investors can continuously purchase European stocks listed on US exchanges using American Depository Receipts (ADRs).

For instance, Euro Stoxx 50 components like ING Group (ING), SAP (SAP), and Banco Santander (SAN) all have ADRs listed on the New York Stock Exchange.

The Stoxx Europe 600 Index

The Stoxx Europe 600 Index is derived from STOXX's Europe Total Market Index and is a subset of the famous Stoxx Global 1800 Index.

It has a fixed number of 600 components, addressing large, mid, and little capitalization companies from 17 countries in Europe: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

As of June 10, 2021, a portion of the components in the Euro Stoxx 50 included (sector and the nation of origin likewise listed):

Nestle: Food, beverage, and tobacco, Switzerland
ASML Holding: Technology, Netherlands
Roche Holding: Health care, Switzerland
Novartis: Health care, Switzerland
LVMH Moet Hennessy: Consumer products and services, France
Unilever: Personal care, medication and supermarkets, United Kingdom
SAP: Technology, Germany
AstraZeneca: Health care, United Kingdom
Linde: Chemicals, Germany
Novo Nordisk: Health Care, Denmark

The Stoxx Global 1800

The Stoxx Global 1800 Index is composed of a fixed number of 1800 components from the world's most developed markets. Its will likely give broad yet liquid exposure.

The Stoxx Global 1800 Index is comprised of 600 European, 600 American, and 600 Asia/Pacific region stocks. Truth be told, they're addressed by the Stoxx Europe Index, the Stoxx North America 600 Index, and the Stoxx Asia/Pacific 600 Index.

As of June 11, 2021, a portion of the components in the Euro Stoxx 50 included (sector and the nation of origin likewise listed):

Apple: Technology, US
Microsoft: Technology, US
Amazon: Technology, US
Imperial Bank of Canada: Banks, Canada
Toyota Motors: Automobiles and parts, Japan
Softbank Group: Telecommunications, Japan
Mitsui and Co: Industrial goods and services, Japan
Unilever: Personal care, medication, and supermarkets, United Kingdom
Novo Nordisk: Health care, Denmark

The Euro Stoxx 50 ESG Index

The Euro Stoxx 50 Index is an impression of the Euro Stoxx 50 Index, however with standardized [Environmental, Social, and Green](/environmental-social-and-administration esg-criteria) (ESG) screens applied for global standards, controversial weapons, warm coal, military contracting, and tobacco.

Companies in the Euro Stoxx 50 are taken out until 20% of the initial components are excluded. Every component is then replaced by an Euro Stoxx company with a higher ESG score from a similar sector as the excluded component.

As of June 11, 2021, a portion of the components in the Euro Stoxx 50 ESG Index included (sector and the nation of origin likewise listed):

ENI: Energy, Italy
Pernod Ricard: Food, beverage, and tobacco, France
Worldline: Industrial goods and services, France
Danone: Food, beverage, and tobacco, France
Daimler: Automobiles and parts, Germany
Deutsche Post: Industrial goods and services, Germany
Vinci: Construction and materials, France

Sustainability Indices

STOXX gives ESG-screened variants of more than 40 of its benchmarks. They incorporate the Stoxx Europe 600 ESG-X, Stoxx USA 500 ESG-X, and the Stoxx Global 1800 ESG-X.

STOXX FAQs

Does STOXX Include U.K. Companies?

Indeed. While the Euro Stoxx 50 Index incorporates no companies from the United Kingdom, a portion of STOXX's other indices do.

For instance, UK-based companies Unilever and AstraZeneca are two components that make up the Stoxx Euro 600 Index.

What Are the U.S. Equivalents of the STOXX 50 and STOXX 600?

Since the Euro Stoxx 50 Index is an index of large European blue-chip companies, the Dow Jones Industrial Average (DJIA) addresses a decent US equivalent.

The DJIA tracks 30 of the largest openly possessed blue-chip stocks trading on the New York Stock Exchange and the NASDAQ. As of June 2021, components of the Dow incorporated any semblance of Apple, Coca-Cola Company, Goldman Sachs, Walmart, and The Walt Disney Company.

The Stoxx 600 tries to offer broader exposure to European companies. Consequently, it's not unexpected refered to as a close European alternative to Standard and Poor's 500 Index (S&P 500).

The S&P 500 is a broadly diversified index consisting of the 500 largest companies in the US.

Do S&P and MSCI Have European Indexes?

The S&P Europe 350 Index is comprised of 350 large blue-chip companies from 16 developed European markets. In the mean time, the MSCI Europe Index looks for large and mid-cap exposure across 15 developed countries in Europe.

What Countries Make Up the Highest Concentration in the STOXX 50?

France (17 components) and Germany (16 components) are the two countries that make up the highest concentration in the STOXX 50. They're followed by the Netherlands (6), Spain (4), Italy (3), Ireland (2), Belgium (1), and Finland (1).

Highlights

STOXX indices are licensed to in excess of 500 companies globally, which incorporate the world's largest financial products issuers, capital owners, and asset managers.
The most well known STOXX index is the Euro Stoxx 50 index, Europe's leading blue-chip index, covering 50 stocks from 8 eurozone countries: Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, and Spain.
STOXX, a subsidiary of Deutsche-Borse Group (stock symbol: DBOEF), is a leading provider of market indexes that are representative of European and global markets.
STOXX indices are utilized as the underlying instrument for financial products like ETFs, futures and options, and structured products, yet additionally for risk and performance measurement.