DEFINITION of 'Dow Jones EURO STOXX 50 '
A market capitalization-weighted stock index of 50 large, blue-chip European companies operating within eurozone nations. The universe for selection is found within the 18 Dow Jones EURO STOXX Supersector indexes, from which members are ranked by size and placed on a selection list.
BREAKING DOWN 'Dow Jones EURO STOXX 50 '
The largest 40 stocks on the selection list are automatically chosen for the EURO STOXX 50. Any grandfathered index components receive next priority, then stocks ranked between 41 and 60 are chosen to reach the final number of 50 stocks in the index. The index is reconstituted annually and the weightings updated once per quarter to account for changes in market caps.
The EURO STOXX 50 closely resembles the Dow Jones STOXX 50 in methodology and construction, with the exception that only companies who have fully transitioned to the euro currency can be members of the EURO STOXX 50. As such, U.K.-based companies are excluded even though many large multinationals trade on the London Stock Exchange.