What is the 'Euro STOXX 50 Index'

The Euro STOXX 50 Index is a market capitalization weighted stock index of 50 large, blue-chip European companies operating within Eurozone nations. Components are selected from the Euro STOXX Index which includes large-, mid- and small-cap stocks in the Eurozone.

BREAKING DOWN 'Euro STOXX 50 Index'

The Euro STOXX 50 Index is managed and licensed by STOXX Limited which provides indexes representing equity market investments all over the world. The Euro STOXX 50 Index includes the Eurozone’s 50 largest companies by market cap.

STOXX Limited

STOXX Limited is owned by Deutsche Börse AG. It has been managing and licensing indexes since 1998. The Euro STOXX 50 Index was among the first STOXX indexes launched in 1998. The company has broadened its offerings substantially since its launch which focused on European stock indexes. It now offers indexes representing nearly every country and region of the world. Asset classes include equity, fixed income and currency. It also offers indexes by sector, factor, strategy and theme.

Euro STOXX 50 Composition and Methodology

The Euro STOXX 50 Index includes the largest 50 stocks in the Eurozone automatically chosen from the Euro STOXX Index by market capitalization. For inclusion in the Euro STOXX Index, companies must be a Eurozone member country. The Euro STOXX Index includes companies of all market capitalization levels from Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The Euro STOXX 50 Index typically represents approximately 60% of the Euro STOXX Index. The Euro STOXX 50 Index is reviewed annually in September for any index component changes.

As of January 8, 2018, the top ten components in the Euro STOXX 50 Index included the following:

  • TOTAL
  • SIEMENS
  • SAP
  • BCO SANTANDER
  • BAYER
  • ALLIANZ
  • BASF
  • SANOFI
  • UNILEVER
  • BNP PARIBAS

Euro STOXX 50 Index Funds

The Euro STOXX 50 Index is a leading market index for investors seeking to follow the Eurozone’s largest equity stock investments. Nearly all of the passive index funds in the investment market that track the Euro STOXX 50 Index are exchange-traded funds (ETFs). One of the largest and most popular for investors is the SPDR Euro STOXX 50 ETF (FEZ). The SPDR Euro STOXX 50 ETF has $4.34 billion in assets under management. The ETF has been available to investors since October 2002.

FEZ trades at $42.20 with an expense ratio of 0.29%. As of November 30, 2017, FEZ had a one-year market value return of 35.24%. For the one-year period FEZ slightly outperformed the Euro STOXX 50 Index in U.S. dollars. The Index reported a return of 34.74%.

Other funds available for investors seeking to track the Euro STOXX 50 Index include the iShares Euro STOXX 50 UCITS ETF, DB X-Trackers Euro STOXX 50 ETF and the DB X-Trackers Euro STOXX 50 UCITS ETF.

RELATED TERMS
  1. STOXX

    A series of market indexes that are representative of the European ...
  2. Composite

    A composite is a grouping of equities, indexes or other factors ...
  3. Index Investing

    Index investing is a passive strategy that attempts to track ...
  4. Eurozone

    The eurozone is a geographic area that consists of the European ...
  5. Capitalization-Weighted Index

    Capitalization-weighted index is a market index in which stocks ...
  6. Nasdaq Composite Index

    The Nasdaq Composite index is a market-capitalization weighted ...
Related Articles
  1. Investing

    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. Investing

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

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

    FEZ vs. IEV: Comparing Europe ETFs

    Discover and compare two European exchange-traded funds. Learn about their purpose, strategy, characteristics and investor suitability.
  4. Investing

    2 Europe ETFs Still Offering Upside

    Europe ETFs could still deliver notable upside in the final months of 2017.
  5. Investing

    Buying Euros as a Long-Term Investment: Risks and Rewards

    Learn about the potential risks and rewards of long term investing in the euro and the current status of the European Union's financial markets.
  6. Insights

    What Are The Advantages Of Not Adopting The Euro?

    European Union countries that do not use the euro have a few advantages over eurozone countries. Investopedia explores how.
  7. Investing

    5 Things You Need To Know About Index Funds

    Index funds, at their best, offer a low-cost way for investors to track popular stock and bond market indexes. But not all index funds are created equally.
  8. Investing

    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.
  9. Tech

    How Would The Euro Trade If If A Grexit Occurs?

    In the event of a Grexit, the euro could head towards parity with the USD.
  10. Investing

    ETF Tracking Errors: Protect Your Returns

    Tracking errors tend to be small, but they can still adversely affect your returns. Learn how to protect against them.
RELATED FAQS
  1. Is it possible to invest in an index?

    While you cannot buy indexes, which are just benchmarks, there are three ways for you to mirror their performance. Read Answer >>
  2. Why doesn't England use the euro?

    Understand why the United Kingdom has opted to not join the eurozone in adopting the euro over the pound sterling as its ... Read Answer >>
  3. Who's in charge of managing exchange-traded funds?

    An exchange-traded fund (ETF) is a security that tracks an index but has the flexibility of trading like a stock. Just like ... Read Answer >>
  4. How do indexes determine which stocks are removed or added to them?

    Stock indexes are formed based on the kinds of stocks or financial securities they want to track. For example, the Standard ... Read Answer >>
  5. When and why did the euro make its debut as a currency?

    On January 1, 1999, the European Union introduced its new currency, the euro. Read Answer >>
Hot Definitions
  1. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  2. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  3. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  4. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  5. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  6. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
Trading Center