Swiss Leader Index
| Swiss Leader Index | |
|---|---|
| base data | |
| Country | Switzerland |
| Stock exchange | SIX Swiss Exchange |
| ISIN | CH0030252883 |
| WKN | 3025288 |
| symbol | SLI |
| RIC | .SLI |
| Bloomberg code | SLI |
| category | Stock index |
| Type | Price index |
The Swiss Leader Index ( SLI ) is a Swiss share index . It is calculated and published by SIX Swiss Exchange (Swiss Exchange , Zurich ). The SLI was launched on July 2, 2007. It includes the thirty liquidate most representative and largest Swiss equities title, which in the overall market index SPI contained.
Diversification
The SLI was launched by SIX as an alternative to the existing standard value index SMI . The SMI has existed since 1988 and is used by the media as a leading index for the Swiss stock market , such as the DAX for the German stock market and the Dow Jones Industrial Average for the US stock market. However, the SMI has the disadvantage that the five largest stocks in the index have a combined weight of around 70%. Thus, price fluctuations in the largest stocks have an excessively large impact on the index. Investors who want to replicate the SMI in their portfolio are therefore confronted with the problem of insufficient diversification of the individual security risks. With the SLI, on the other hand, the weighting of the largest index titles is capped (reduced). This reduction in the weighting of the largest stocks increases the weight of the smaller stocks, which means that the price risk is better diversified.
UCITS-compliant title weighting in the SLI
The investment funds approved for sale in Europe must comply with the provisions of the UCITS Directive (Directive 85/611 / EEC on "Undertakings for collective investment in transferable securities"). Article 22 of the UCITS Directive provides the following conditions:
- The weight of an individual title in the investment fund may not exceed 10%.
- Individual stocks with a weight of more than 5% may not together make up more than 40% of the total weighting of an investment fund.
The SLI fulfills both conditions: The weight of the four largest stocks is capped to 9% each, and that of the following stocks to 4.5% each. Since the weighting changes constantly, SIX adjusts it every three months, if necessary also between these capping dates. This means that the SLI is UCITS compliant and European investment funds can track the index directly.
Significance of the SLI as a leading index
It is uncertain whether the SLI will achieve a similar level of attention as the SMI in the financial media, or even replace it as the leading index. Long-standing habits are changing slowly, and the SLI is still poorly known among the population. At the time of its launch, however, various financial institutions had already issued exchange-traded funds (ETF) and structured products that map the SLI. This means that private investors also have the option of replicating the SLI and benefiting from its UCITS-compliant title weighting.
Base date
The SLI has been calculated and published in real time since Monday, July 2, 2007 . In order to be able to compare it with other indices, however, the index was calculated back to the end of 1999, so that a multi-year index history is already available today. The SLI was standardized as of December 30, 1999 (base date), with a starting value of 1,000 index points.
Admission criteria
The stocks contained in the overall market index SPI serve as a universe for the selection of the thirty SLI stocks . The SPI shares are sorted in descending order based on the following two key figures, each weighted 50%:
- Average free float market capitalization in CHF
- Cumulative turnover in CHF (only on-exchange trades are taken into account)
The resulting ranking is created once a year on the last trading day in June. The key figures are calculated using the data from the previous year (July 1st of the previous year - June 30th). Basically, the top thirty titles on this ranking qualify for the SLI. However, there is a tolerance range of +/- three stocks to prevent the index composition from changing too much. This tolerance regulation thus serves to stabilize the index. The new index composition will then be implemented on the third Friday in September after close of trading. On this day, the options contracts on the EUREX futures exchange expire , which prevents existing SLI contracts from being adjusted during their term.
The 5 biggest titles
| Novartis registered share | 9.38% |
| Nestlé registered share | 9.22% |
| Roche participation certificate | 9.15% |
| UBS registered share | 8.37% |
| ABB registered share | 4.52% |
(As of December 30, 2016)
Web links
Individual evidence
- ↑ SIX Swiss Exchange AG, Indices: Factsheet SLI (PDF; 275 kB)