The European Stoxx Index 50, with the English name “Euro Stoxx 50”, was founded on February 26, 1998, by the Swiss index provider STOXX Limited. The index is composed of the top 50 stocks of companies with the largest market capitalization and the most liquidity in the Eurozone stock market. The index covers stocks from 8 countries including Germany, France, Italy, Finland (as of April 2020), including medical, media, insurance, food, automotive and other industries, so it is regarded as the weather vane of the European economy.
The European Stoxx Index 50 is a market capitalization-weighted index, so the greater the market capitalization of the company to which the constituent stocks belong, the greater the impact on the stock index when stock prices fluctuate. The management organization Stoker will conduct an annual review of the index in September of each year. At that time, substandard constituent stocks will be removed, and non-constituent stocks that meet the criteria will be included.
As one of the most liquid indexes in the Eurozone, the European Stoxx Index 50 is often used as a benchmark by financial products such as ETFs. In addition, the index is the basis of many strategic indices, such as the STOXX Risk Control indices in Europe.
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