{"id":4149,"date":"2024-11-05T17:31:04","date_gmt":"2024-11-05T16:31:04","guid":{"rendered":"https:\/\/valueinvestments.ch\/lexikon\/swiss-market-index-smi\/"},"modified":"2025-01-07T11:08:23","modified_gmt":"2025-01-07T10:08:23","slug":"swiss-market-index-smi","status":"publish","type":"lexikon","link":"https:\/\/valueinvestments.ch\/en\/lexicon\/swiss-market-index-smi\/","title":{"rendered":"Swiss Market Index (SMI)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">What is the Swiss Market Index (SMI)?<\/h2>\n\n<p class=\"wp-block-paragraph\"><strong>The Swiss Market Index (SMI) is a blue-chip index and is the most important share index in Switzerland<\/strong>. It was launched on June 30, 1988 with a base value of 1500 points. The SMI currently stands at 11,491.80 points (as at 25.5.2022). A blue chip index is an index that tracks the <a href=\"https:\/\/www.valueinvestments.ch\/aktie\">shares of<\/a> well-known and financially stable <a href=\"https:\/\/www.valueinvestments.ch\/b%C3%B6rse\">listed<\/a>companies, so-called blue chips. Blue chip stocks offer investors consistent <a href=\"https:\/\/www.valueinvestments.ch\/rendite\">returns<\/a>, making them desirable investments, and are considered a gauge of the relative strength of an industry or economy. The chart shows the annual price data of the SMI from 2000-2021, during which time the index rose from 8135.5 points to 12,875.66 points.      <\/p>\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lirp.cdn-website.com\/6ea53b9f\/dms3rep\/multi\/opt\/SMI1-1920w.png\" alt=\"The chart shows the annual price data of the SMI. The SMI has risen from 8135.4 index points in 2000 to 12875.66 index points in 2021. \" title=\"\"><\/figure>\n\n<p class=\"wp-block-paragraph\">Annual SMI price data from 2000 to 2021; source: www.statista.com<\/p>\n\n<p class=\"wp-block-paragraph\">The SMI comprises the 20 largest companies in the Swiss Performance Index (SPI) and thus represents around 80% of total capitalization. The SPI is the Swiss Performance Index. Together with the SMI, it is one of the most important share indices. The SPI includes almost all listed Swiss <a href=\"https:\/\/www.valueinvestments.ch\/aktiengesellschaft\">stock corporations<\/a> (companies domiciled in Switzerland or the Principality of Liechtenstein). The SPI therefore reflects the Swiss stock market. The SPI currently stands at 14,708.47 (as at 25.05.2022) and includes 220 companies.     <\/p>\n\n<p class=\"wp-block-paragraph\">The SMI follows the free float principle. This means that the total number of <a href=\"https:\/\/www.valueinvestments.ch\/aktie\">shares<\/a> in circulation has been adjusted by the respective fixed ownership. For this reason, only the currently tradable portion is included in the index. In addition, a weighting was implemented. This means that none of the 20 companies can have a higher weighting than 20% of the index. The SMI serves as a benchmark index for the Swiss equity market.     <\/p>\n\n<p class=\"wp-block-paragraph\">The SMI is published as a price index, but also as a performance index under the name SMIC. As a rule, unlike a performance index, a price index does not take <a href=\"https:\/\/www.valueinvestments.ch\/dividend\">dividend payments<\/a>into account. <\/p>\n\n<p class=\"wp-block-paragraph\">The following companies are currently included in the SMI (as at 25.05.2022):<\/p>\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lirp.cdn-website.com\/6ea53b9f\/dms3rep\/multi\/opt\/SMI2-1920w.PNG\" alt=\"Illustration of all company logos currently included in the SMI (June 2022)\" title=\"\"><\/figure>\n\n<h2 class=\"wp-block-heading\">Excursus performance index vs. price index<\/h2>\n\n<p class=\"wp-block-paragraph\">A performance index is a <a href=\"https:\/\/www.valueinvestments.ch\/aktie\">stock index<\/a>that adds the amount of all <a href=\"https:\/\/www.valueinvestments.ch\/dividend\">dividend payments<\/a>, capital <a href=\"https:\/\/www.valueinvestments.ch\/gewinn\">gains<\/a>and other cash distributions to the net share price. When measuring performance over a given period, the performance index adds these transactions to the net share price before calculating the index return. <\/p>\n\n<p class=\"wp-block-paragraph\">In contrast, a price index (non-performance index) calculates the <a href=\"https:\/\/www.valueinvestments.ch\/rendite\">return<\/a> based on the weighted market value without taking cash payouts into account. Some investors believe that compared to the price approach, a performance-based calculation provides a more accurate measure of performance. <\/p>\n\n<h2 class=\"wp-block-heading\">The SMI family<\/h2>\n\n<p class=\"wp-block-paragraph\">The SMI family is made up of the 50 largest and most liquid shares on the Swiss stock market. In addition to the SMI, the SMIM and SMI-Expanded indices are also part of the family. The SMIM contains the 30 <a href=\"https:\/\/www.valueinvestments.ch\/liquidit%C3%A4t\">most liquid<\/a>and highly capitalized mid-cap stocks, while the SMI-Expanded contains all SMI and SMIM stocks together.  <\/p>\n\n<p class=\"wp-block-paragraph\">The table shows the most important information on the indices:<\/p>\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lirp.cdn-website.com\/6ea53b9f\/dms3rep\/multi\/opt\/SMI3-1920w.png\" alt=\"Figure Table with the marginal information on the SMI, SMIM, and SMI Expanded\" title=\"\"><\/figure>\n\n<p class=\"wp-block-paragraph\">Source: www.six-group.com, Swiss Market Index -Family 09.2018<\/p>\n","protected":false},"template":"","class_list":["post-4149","lexikon","type-lexikon","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/valueinvestments.ch\/en\/wp-json\/wp\/v2\/lexikon\/4149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valueinvestments.ch\/en\/wp-json\/wp\/v2\/lexikon"}],"about":[{"href":"https:\/\/valueinvestments.ch\/en\/wp-json\/wp\/v2\/types\/lexikon"}],"wp:attachment":[{"href":"https:\/\/valueinvestments.ch\/en\/wp-json\/wp\/v2\/media?parent=4149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}