Swiss Market Index

Rules

Acceptance criteria

The underlying universe of the SMI, from which candidate constituents are selected, is the SPI. To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalization. On the one hand, it must represent at least 50% of the average liquidity of the SPI constituent issues. On the other hand, it must have a minimum free-float capitalization equal to 0.45% or more of the entire SPI capitalization. Thus, trading volume and capitalization are the determining factors in the quarterly rankings. The composition of the index is reviewed annually on the third Friday in September.

Fixed number of 20 securities

The SMI comprises a fixed number of 20 securities as of the ordinary review date in September 2007. Prior to this date, the index contained 25 listings.

It is worth noting that the number of constituents of the index (20) is below the generally accepted minimum sample size of 30 required to reach statistical significance.

Capped weightings

In 2017, in order to address the issue that the top three constituents (Nestlé, Roche, Novartis) account for more than 60% of the index capitalization, SIX Swiss Exchange changed the rules of the SMI to introduce capped weighting. The weight of any constituent in the SMI index can no longer exceed 18%.

Readjusting any weight exceeding 18% down to that value is done, in principle, on a quarterly basis. However, whenever a constituent reaches a weight exceeding 20% during a quarter (intra-quarter breach), then the weight is brought back to 18% without waiting for the next quarterly review.

To make the transition smoother, there was an initial transition period during which these changes were progressively implemented, in steps of at most 3% per quarter.

Additionally, a new index, the SPI 20, was created to continue indexing the 20 SMI constituents without any caps.

SMI constituents

Current constituents

As of 13 June 2023, the following 20 stocks make up the SMI index.

The rank is based on free-float capitalization as of 13 June 2023. The first ten weights are given as of 28 April 2023. The other weights are given as of 23 March 2020. The latest update following the ordinary review was implemented in June 2023, when Kuehne + Nagel replaced Credit Suisse Group.

SMI family

SMI is also the name of a family of indices encompassing the SMI itself, but also the SMI MID with the next 30 large-caps (2) and mid-caps (28), and the SMI Expanded with all 50 shares.

The indices are available in several variations. For example, the SMI, which is a price index, also exists as a performance index, the SMI Cum Dividend (SMIC), which takes into account dividend distributions.

History

Historical values

The following table shows the annual development of the Swiss Market Index since 1988.

Milestones

The following table shows historic milestones of the Swiss Market Index. Latest seen values are not final: italic indicates that the value may be seen again if the bear market persists; parentheses indicate that the value will be seen again if we reenter a bull market (previous peak reached again); Other values may be seen again in case of a crash (assuming a threshold of -50%).

To keep the scale logarithmic, it uses increments similar to exchange ticks: 1 between 5 and 10, 2 between 10 and 20, 5 between 20 and 50, 10 between 50 and 100, etc.

References

1. "Swiss Market Index SMI® Total Return". SIX Swiss Exchange.
2. (16 June 2022). "Leitzinserhöhung schickt Schweizer Börse auf Talfahrt". Neue Zürcher Zeitung.
3. "Indices, SMI-Index". Financial Times.
4. "De quoi se compose le SMI?". PostFinance.
5. (18 June 2019). "Le SMI dépasse pour la première fois les 10'000 points". Swissinfo.ch.
6. (17 June 2021). "Schweizer Leitindex SMI übertrifft erstmals die Marke von 12'000 Punkten". [[Luzerner Zeitung]].
7. "Nun ist auch die Schweizer Börse im Bärenmarkt". Cash.
8. "SMI verpasst 13'000 Punkterekord knapp". Cash.
9. "iShares SMI Equity Index Fund (CH) {{!}} Class D".
10. "Volume and turnover". SIX Swiss Exchange.
11. (5 February 2020). "Swiss Indices Endorsed Under the EU Benchmarks Regulation". SIX Swiss Exchange.
12. "Rules Governing The SMI Index Family". SIX Swiss Exchange.
13. "SMI® - the Blue Chip Index". SIX Swiss Exchange.
14. "SMI". the market (NZZ).
15. "SIX Swiss Exchange Indices: Adjustments to SMI®, SMIM® and SLI® composition and SPI® small/middle/large breakdown". SIX Swiss Exchange.
16. "Extraordinary inclusion of Transocean Ltd in the SMI and SLI indices". SIX Swiss Exchange.
17. "Index adjustments on the occasion of the ordinary index review". SIX Swiss Exchange.
18. "Index adjustments on the occasion of the delisting of Synthes N". SIX Swiss Exchange.
19. (2016-01-14). "Swiss Life to replace Transocean in Swiss blue-chip SMI index". Reuters.
20. (2017-04-24). "Lonza to replace Actelion in Swiss blue-chip index -stock exchange". Reuters.
21. (2017-05-05). "Sika ersetzen Syngenta im SMI".
22. "Sika AG: Stock Split and ISIN-Change".
23. Spencer Stuart. (2019). "2019 Switzerland Spencer Stuart Board Index".
24. "Index adjustments on the occasion of the ordinary index review". SIX Swiss Exchange.
25. (7 July 2021). "Index adjustments on the occasion of the ordinary index review". SIX Swiss Exchange.
26. "Index adjustments on the occasion of the ordinary index review". SIX Swiss Exchange.
27. (2025-06-23). "Amrize Lists on SIX Swiss Exchange".
28. "SMI PR (^SSMI) Verlauf – Yahoo Finanzen".