S&P Europe 350 Index

S&P Europe 350 Index

Table of Contents

BRIEF ABOUT INDICES(History)

The S&P Europe 350 Index is a broad-based, market-cap-weighted index designed to track the performance of securities that meet sustainability standards while keeping comparable overall industry group weights as the S&P Europe 350. To be included in the S&P Europe 350 index, a company must meet specific requirements, which include:

Market capitalization (the size must be in the top 95th percentile), public float (who owns the stock), domicile, type of securities, and sector categorization.

If a company does not match these requirements, it is generally excluded from the S&P Europe 350 index. Furthermore, if a firm changes enough as a result of M&A activity or restructuring to no longer match the rules, it will be deemed unsuitable to remain on the index and will be removed.

TOP LISTED COMPANIES

  • NESTLE AG

  • ROCHE HOLDING AG

  • LVMH

  • ROYAL DUTCH SHELL

  • MERCK & CO

  • NOVARTIS AG

  • SAP SE

  • L’OREAL

  • ANHEUSER-BUSCH INBEV

  • HSBC HOLDINGS

FORMULA

The indices  are calculated by means of the divisor methodology.

TIMING

  • The most basic – and effective – strategy for minimizing risk is diversification.
  • Diversification is based heavily on the concepts of correlation and risk.
  • A well-diversified portfolio will consist of different types of securities from diverse industries that have varying degrees of risk and correlation with each other’s returns.
  • Investment professionals agree that diversification can’t guarantee against a loss, it is the most important component to helping an investor reach long-range financial goals, while minimizing risk.