Dow Jones STOXX 50

DEFINITION of 'Dow Jones STOXX 50'

A stock index representing 50 of the largest companies in Europe based on market capitalization. The stock universe used for selection is an aggregate of the 18 Dow Jones STOXX 600 Supersector indexes, which together capture about 95% of the capitalization of the major stock exchanges in 18 European countries. Each sub-index places its largest members placed on a selection list, which is then ranked by market cap to choose the STOXX 50 members.

The index, first reported in 1998, is reconstituted annually, and weightings are adjusted quarterly to account for proportional changes in underlying company market caps.


BREAKING DOWN 'Dow Jones STOXX 50'

The Dow Jones STOXX 50 index closely resembles the Dow Jones EURO STOXX 50 in methodology and construction, with the exception that it does not limit company selection to companies that have fully transitioned to the euro currency.

The index limits the weighting of any one member to 10%, but no sector limitations are applied to the index's construction. As such, banking companies dominate the STOXX 50. The index is meant to capture blue-chip companies in the region, so the average market cap is large ($70 billion euros in 2007).

RELATED TERMS
  1. Dow Jones EURO STOXX 50

    A market capitalization-weighted stock index of 50 large, blue-chip ...
  2. STOXX

    A series of market indexes that are representative of the European ...
  3. Dow Jones STOXX Sustainability ...

    A stock index that measures the financial performance of leading ...
  4. Dow Jones EURO STOXX Sustainability ...

    A stock index that measures the financial performance of leading ...
  5. Dow Jones U.S. Market Index

    A market-capitalization-weighted index maintained by Dow Jones ...
  6. Dow Jones Global Titans 50 Index

    A market capitalization-weighted index of 50 of the largest multinational ...
Related Articles
  1. ETFs & Mutual Funds

    FEZ: SPDR EURO STOXX 50 ETF

    Learn about FEZ, the Euro Stoxx 50 ETF. FEZ tracks the 50 largest companies in Europe, making it the Dow Jones Industrial Average of Europe.
  2. ETFs & Mutual Funds

    The Top 5 ETFs to Track the Euro Stoxx 50 for 2016 (FEZ, HFEZ)

    Learn about a handful of the world's top ETFs designed to provide exposure to large-cap eurozone equities through the EURO STOXX 50 Index.
  3. ETFs & Mutual Funds

    SPDR Euro STOXX 50 ETF: Who Is Invested?

    Find out which institutional investors are investing in the SPDR Euro STOXX 50 ETF, and who's buying, who's selling, and who's the largest shareholder.
  4. ETFs & Mutual Funds

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  5. Investing

    Why You Need To Know About S&P Dow Jones Indices

    This Article introduces the S&P Dow Jones Indices (SPDJI), available variant categories and index trading advantages
  6. Investing

    Understanding The S&P Dow Jones Indices

    S&P Dow Jones Indices offer more than 830,000 indices, including the S&P 500 and the Dow Jones Industrial Average.
  7. ETFs & Mutual Funds

    4 Best Dividend-Paying European Equity ETFs (FDD, IDVY)

    Investors seeking dividends from eurozone-based companies might consider ETFS. These securities provide many opportunities for dividends and regional exposure.
  8. ETFs & Mutual Funds

    An Introduction To Stock Market Indices

    Investopedia explains the five most talked about indices and what makes them all different.
  9. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  10. ETFs & Mutual Funds

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
RELATED FAQS
  1. Can you buy shares in the Dow Jones Industrial Average (DJIA)?

    Invest in the Dow Jones Industrial Average index through index funds or ETFs. Read Answer >>
  2. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  3. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  4. Who or what is Dow Jones?

    Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the world. ... Read Answer >>
  5. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ... Read Answer >>
  6. What is the Dow Jones Industrial Average (DJIA) all-time high?

    Inching ever higher, the Dow Jones recorded new highs in May 2015. Since the index was first calculated in 1896, it has grown ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center