The Best Dow Jones STOXX 50
Definition of Dow Jones STOXX 50
The Dow Jones STOXX 50 is a stock index representing 50 of the largest companies in Europe based on market capitalization. The index, first reported in 1998, is reconstituted annually, and the weights are adjusted quarterly to take account of proportional changes in the market ceilings of the underlying companies.
Breaking Dow Jones STOXX 50
The Dow Jones STOXX 50 is selected from a trading universe that is an aggregate of the 18 Dow Jones STOXX 600 Supersector indices, which together capture about 95% of the capitalization of major stock exchanges in 18 European countries. Each subscript places its largest members on a select list, which is then sorted by market capitalization to choose 50 STOXX members.
The Dow Jones Stoxx 50 index looks a lot like the Dow Jones EURO STOXX 50 in methodology and construction, with the exception that it does not limit the selection of companies to those companies that have completely switched to the euro currency.
The index limits the weighting of any member to 10%, but no sectoral limitations apply to the construction of the index. As such, banking companies dominate the STOXX 50. The index is intended to capture top-tier companies in the region, so the average weighted market cap is large ($ 117 billion in 2018).
EURO STOXX 50
The EURO STOXX 50 is a euro area stock index designed by STOXX, an index provider owned by Deutsche Börse Group. According to STOXX, it aims to ” provide a first-rate representation of Supersector leaders in the area euro.Se it consists of 50 of the largest and most liquid stocks.
The Euro Stoxx 50 index is derived from the 19 regional indices of the EURO Stoxx Supersector and represents the largest supersector leaders in the euro zone in terms of free float market capitalization. The index captures approximately 60% of the free float market capitalization of the Euro Stoxx Total Market Index, which in turn covers approximately 95% of the free float market capitalization of the countries represented.
STOXX Limited is a globally integrated index provider, covering global markets across all asset classes, developing, maintaining, distributing and trading a comprehensive global family of Strictly rules-based and transparent indices. STOXX is a wholly owned subsidiary of Deutsche Börse Group. STOXX calculates over 7,500 indices and acts as a marketing agent for Deutsche Börse indices like DAX.
STOXX indices are licensed to financial institutions and other users for use with exchange-traded funds (ETFs), Mutual Funds, futures, options, structured products and other purposes.