The Dutch index 25, also known as the AEX index, is named the “AEX index” in English. It was founded by the Amsterdam Stock Exchange (now incorporated into the Euronext) in 1983. It is a very important stock price index in the Netherlands and Europe as a whole. The index is made up of 25 companies with larger market capitalization and higher liquidity listed on Euronext Amsterdam, with a total of 25 constituent stocks. The AEX index covers the most representative companies in 14 industries in the Netherlands, including technology, energy, insurance, real estate, and media, and is known as the vane of the Dutch economy.
The Netherlands Index 25 is a market capitalization-weighted index. Therefore, the greater the market value of the constituent stocks, the greater the impact on the stock index when the stock price fluctuates. In order to prevent the influence of large market capitalization companies from being too large, a constituent stock can only account for 15% of the total Weights. The governing body of the index is an independent AEX steering committee, which will approve the Dutch index 25 quarterly in March, June, September and December each year to ensure that the index can fully reflect the trend of the Dutch stock market. At that time, substandard constituent stocks will be removed, and non-constituent stocks that meet the criteria will be included.
In addition to reflecting the economic trends of the Netherlands and Europe, the AEX index is also the basis of many structured products, funds, ETFs, options and futures. The index is mainly affected by the two industries of technology and energy. Among them, Royal Dutch Shell, which is affiliated to the energy industry, accounts for 14.60% of the weight, and Asimer, which is affiliated to the technology industry, accounts for 14.60% of the weight, weighted 15%. Therefore, when these two industries fluctuate greatly, the AEX index is easily affected. For example, a sharp drop in oil prices generally causes the share price of Royal Dutch Shell to fall, leading to a drop in the AEX index.
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