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. STOXX

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

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

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

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

    A market capitalization-weighted index of 50 of the largest multinational ...
  6. Dow Jones 65 Composite Average

    A composite index that measures changes within the 65 companies ...
Related Articles
  1. Mutual Funds & ETFs

    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.
  2. Investing Basics

    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
  3. Investing Basics

    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.
  4. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  5. Investing Basics

    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.
  6. Mutual Funds & ETFs

    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.
  7. Investing Basics

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  8. Mutual Funds & ETFs

    (EWQ, HFX, FEUZ) 3 Best France ETFs for 2016

    Discover how investors can use exchange traded funds (ETFs) to easily obtain exposure to equities of major companies domiciled in France.
  9. Investing

    Top Reasons Stock Indices Could Be Biased

    Do the owners of the large stock indices (McGraw Hill Financial, CME Group, and News Corp) have incentive to pick stocks to put in the index that are "shiny" as a marketing ploy? And if so, wouldn't ...
  10. Mutual Funds & ETFs

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
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 ... 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. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center