Indices

The list below details the most commonly referenced stock market indices used in structured product construction.

FTSE 100, United Kingdom

The FTSE 100 (FTSE) is a stock index of the 100 biggest UK companies listed on the London Stock Exchange by capitalisation. The FTSE is not tied to any specific industry.

The index began in 1984 and is capitalisation weighted (market-value weighted).

S&P 500, USA

The S&P 500 (S&P) is an index of the prices of 500 large-cap ($10 bn. - $100 bn.) common stocks traded in the USA. The companies in the index are traded on either NYSE or NASDAQ, which are the two largest stock exchanges in the USA.

The index began in 1957 and is free-float adjusted market capitalisation weighted (market-value weighted).

Euro Stoxx 50, Eurozone

Euro Stoxx 50 (Stoxx) is an index of 50 stocks of companies located in 12 countries in the Eurozone (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain).

The index began in 1987 and is free-float adjusted market capitalisation weighted (market-value weighted).

Dax, Germany

The Dax is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

The index began in 1987 and is a free-float total return return index.

CAC 40, France

The CAC 40 is a French stock market index that measures the value of the 40 most significant values among the 100 highest market caps on the Euronext Paris.

The index began in 1987 and is free-float adjusted market capitalisation weighted (market-value weighted).

HSI, China

The Hang Seng Index (HSI) is an index of 45 stocks, which together represents 60% of the capitalisation on the Hong Kong Stock Exchange (HKSE). The 45 constituents are divided into four sub-indices by sector (finance, utilities, properties and commerce & industry).

The index began in 1979 and is free-float adjusted market capitalisation weighted (market-value weighted).

Nikkei 225, Japan

Nikkei 225 (Nikkei) is a stock index listing shares on the Tokyo Stock Exchange (TSE). There are 225 companies divided across 35 industry groups.

It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950 and is a price-weighted index.

iShares Brazil, USA

The iShares Brazil Index Fund (iShares Brazil) is an Exchange Traded Fund (ETF) in the USA. The Fund’s results correspond to the performance of publicly traded securities in the Brazilian market, as measured by the MSCI Brazil (Free) Index.

The Fund began in 2000.

Free-float methodology

This is a method by which the market capitalisation of an index's underlying companies is calculated by multiplying the equity's price by the number of shares readily available in the market.