The Eurostoxx 50 is the main European stock market index, where the 5th most important companies in Europe from 19 different sectors are listed, represented by 12 eurozone countries .
Among them, we can find SAP, Banco de Santander, Unilever, AXA Group, Daimler, etc. The index has its trading base since December 31, 1991 with a value of 1000 points, being an index weighted by market capitalization. Therefore, not all the companies that compose it have the same weight.
The countries that have the greatest weight in this index are France, Germany, Italy, Spain, Finland, the Netherlands and Belgium.
This index has a wide variety of industrial sectors and is also a relevant indicator that serves to measure the economic situation in Europe. Some technicians who formulate it belong to Dow Jones & Company, which is why it is also known as Dow Jones EUROSTOXX 50.
It is widely used as an underlying asset because it allows replication in derivative products such as Futures, Options, ETFs, CFDs and Warrants. In addition, it has the function of serving as a benchmark or as a reference asset for investment fund managers. At present, numerous funds, deposits and insurance are referenced to its evolution. It is common to see how investors build a portfolio that exactly replicates the composition of this index, to obtain a similar revaluation.
The Eurostoxx 50 is serviced once a year. In its review, Stoxx, which is the company in charge of calculating the index, takes into account variables such as business volume, or the loss of capitalization of the securities, being replaced by more consistent ones.