# Swiss Market Index
The Swiss Market Index (SMI) is Switzerland's blue-chip stock index, made up of the 20 largest and most liquid equities in the Swiss Performance Index (SPI) and covering approximately 75% of the market capitalization of the Swiss equity market.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) It was launched on 30 June 1988 at a base level of 1,500 points and is published as a price index, with a companion performance index, the SMIC, that reinvests dividends.[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices) SIX calculates the index in real time, tick by tick, and reviews its composition once a year in September.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf)
| Key fact | Detail |
|---|---|
| Constituents | 20 largest and most liquid SPI stocks, about 75% of Swiss equity market capitalization[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) |
| Launched | 30 June 1988 at 1,500 points; price index, with the SMIC total-return variant[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices) |
| Weighting | Laspeyres free-float market-cap weighting; weights capped quarterly at 18% each so no two components exceed 20% combined[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) |
| Concentration | Nestlé, Novartis, and Roche hold over 50% of the index; the top 10 holdings of an SMI index fund totalled 86.25%[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) • [4](https://www.ishares.com/ch/professionals/en/literature/fact-sheet/ishares-smi-equity-index-fund-ch-class-i-nt-a-chf-factsheet-ch0385767725-ch-en-institutional.pdf) |
| Long-run returns | 2000–2023: price index +47.13% (1.62% p.a.) versus SMIC total return +181.86% (4.41% p.a.)[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) |
| Recent levels | All-time monthly high of 14,346.1 points in July 2026; 13,830.3 points at end-September 2026[5](https://www.ceicdata.com/en/indicator/switzerland/equity-market-index) |
| Derivatives | Eurex SMI futures (FSMI), CHF 1 per index point, maturities to 36 months; options (OSMI) European-style[6](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Futures-34674) • [7](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Options-10212) |
| Tracking cost | SMI ETFs with total expense ratios from 0.15% to 0.35%[8](https://stock-market.ch/blog/smi-index-explained) |
## What the SMI is
The SMI is the headline equity index of [SIX Swiss Exchange](https://www.edgepedia.org/six-swiss-exchange) and, in SIX's own rulebook, the most important equity index in Switzerland.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) It selects only the top tier of the much broader SPI, which runs to more than 200 constituents. Because Switzerland's listed market is itself top-heavy, 20 large caps carry 81% of the SPI weighting across a total of 219 companies, the 20-stock SMI captures most of the market's value with a fraction of its names.[9](https://olz.ch/en/insights/reduce-cluster-risks-in-the-swiss-equity-market)
The index has grown with the market it measures. At the end of December 2004 its market value stood at approximately CHF 697 billion, then 89% of Swiss market capitalization, with 27 blue-chip constituents; the membership was later reduced to 20.[10](https://www.eurex.com/resource/blob/267320/9eb4a0331fbe7c03ede8a6b1db9b0a8a/data/QckGuide_SMI.pdf.pdf)
## How it is calculated
**Weighting and formula.** SIX equity indices use the Laspeyres formula, weighting each component by its free-float market capitalization: share price multiplied by the number of shares multiplied by the free-float factor.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) Free float means only the shares actually available to the market count, so a founder or a controlling shareholder's block does not inflate a company's index weight.
**Capping.** Component weights are capped quarterly to 18% each, with ad hoc capping if the limits are breached between reviews, so that no two components together exceed a weighting of 20%. This makes the SMI fully compliant with the ESMA UCITS guidelines, which matters because it allows UCITS funds to replicate the index without breaching their own diversification rules.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) Even with the cap, the largest names dominate.[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices)
**Divisor.** As in other Laspeyres indices, a divisor converts aggregate free-float capitalization into an index level; the divisor is recalculated for corporate actions based on the index value of the day before the corporate action becomes effective, so splits, spin-offs, and capital changes do not create artificial jumps.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf)
**Price, gross and net return versions.** The headline SMI is a price index that ignores dividends. SIX also publishes a gross return type, which assumes dividend income is reinvested in full, and a net return type, which deducts withholding tax from dividends.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) The distinction is large in practice: over 2000–2023 the price index returned 1.62% per year while the total-return SMIC returned 4.41% per year, a gap of roughly 2.8 percentage points a year from dividends.[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) This also marks a construction difference against Germany's DAX, which in its original form was a total-return index reinvesting dividends.[8](https://stock-market.ch/blog/smi-index-explained)
**Review cycle.** The composition is reviewed once a year in September. The underlying SPI selection list is compiled quarterly on cut-off dates of 31 March, 30 June, 30 September, and 31 December, ranking components over 12 months on average free-float market capitalization and accumulated order-book turnover, each weighted 50%. Ordinary index reviews are implemented on the third Friday of March, June, September, and December, with at least two months' notice.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf)
## Eligibility rules and membership changes
Inclusion starts with the SPI. Instruments enter the SPI once they reach a free-float factor of 20% or higher, with a 10-trading-day announcement period after the criterion has been met for three consecutive months.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) Substantial shareholdings of 5% or more held in fixed ownership are deducted from market capitalization when calculating the free-float factor. Special Purpose Acquisition Companies are not eligible, and investment companies investing in Swiss companies are excluded to avoid double representation. For foreign-domiciled issuers without an exclusive primary listing on SIX, inclusion further requires that the shares are not in an internationally significant foreign benchmark index and that at least 50% of turnover is generated on SIX or the liquidity ratio is at least 50%.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf) Takeovers also force exits: a company is excluded from an index, at the latest, when ownership of the absorbing company exceeds 90%.[1](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf)
**The September 2026 reshuffle.** In the ordinary index review announced in July 2026, SIX admitted Galderma Group and [Sandoz Group](https://www.edgepedia.org/sandoz-group) to the SMI and SPI 20 and excluded Swisscom and Kuehne+Nagel, with the adjustments applied after the close on 18 September 2026 and effective on 21 September 2026.[11](https://www.six-group.com/dam/download/market-data/indices/index-messages/index-adjustments-on-the-occasion-of-the-ordinary-index-review-2026.pdf) In the same review, Swisscom, Kuehne+Nagel, and [DSM-Firmenich](https://www.edgepedia.org/dsm-firmenich) moved into the SMIM mid-cap index while Galderma, Sandoz, and Clariant left it.[11](https://www.six-group.com/dam/download/market-data/indices/index-messages/index-adjustments-on-the-occasion-of-the-ordinary-index-review-2026.pdf)
## Concentration and composition
The SMI's defining feature is the weight of three companies. Nestlé, Novartis, and Roche hold a combined weighting of over 50% of the index according to a Swiss Life analysis; a specialist commentary puts the possible maximum at 54% once each is capped at or near 18%; and the October 2023 weights of 22.96%, 15.91%, and 14.05% sum to roughly 53%.[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) • [8](https://stock-market.ch/blog/smi-index-explained) • [2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices) ETF holdings show a somewhat lower combined figure of roughly 46%, with Roche 16.73%, Novartis 15.90%, and Nestlé 13.71%, followed by UBS Group at 9.17%, ABB at 8.31%, [Richemont](https://www.edgepedia.org/richemont) at 6.97%, and Zurich Insurance at 6.14%.[12](https://www.ishares.com/ch/individual/en/literature/fact-sheet/cssmi-ishares-smi-etf-ch-fund-fact-sheet-en-ch.pdf)
The concentration is a property of the Swiss market, not only of the index design. In the 219-stock SPI, the same three companies represented just under 45% at 31 December 2023, and the top 10 stocks of the SPI account for around two-thirds of its market capitalization.[9](https://olz.ch/en/insights/reduce-cluster-risks-in-the-swiss-equity-market) • [13](https://complementa.ch/wp-content/uploads/2024/02/Index-concentration-global-equity-markets_Complementa-02.24-1.pdf)
## By the numbers
**Long-run performance.** From 1 January 2000 to 31 December 2023, the SMI price index returned a cumulative 47.13%, or 1.62% per year, while the total-return SMIC returned 181.86%, or 4.41% per year.[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) Over the decade 2014–2024 the price index delivered approximately 80–90%, a compound annual growth rate of roughly 6–7%, with heavyweight constituents yielding 3–5% on average.[8](https://stock-market.ch/blog/smi-index-explained)
**Extremes.** The index's best calendar year was 2005 at +33.21% and its worst 2008 at −34.69%; 14 of the 24 years to 2023 ended positive.[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf)
**Recent calendar years.** Benchmark total returns were 30.16% in 2019, 4.35% in 2020, 23.74% in 2021, −14.29% in 2022, 7.09% in 2023, 7.55% in 2024 and 18.03% in 2025.[12](https://www.ishares.com/ch/individual/en/literature/fact-sheet/cssmi-ishares-smi-etf-ch-fund-fact-sheet-en-ch.pdf) The index reached its then record of 12,573 points on 18 August 2021 and stood around 10,400 points on 30 October 2023.[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices) By 2026 it had moved well past that peak: the monthly series shows an all-time high of 14,346.1 points in July 2026 and a close of 13,830.3 points in September 2026, down from 14,286.4 at end-August.[5](https://www.ceicdata.com/en/indicator/switzerland/equity-market-index)
## How it compares with other benchmarks
**MSCI Switzerland.** The MSCI Switzerland index contains the 39 largest SPI stocks, representing around 85% of Switzerland's free-float market capitalization. Over the five years to 30 October 2023 it returned 25.98% against 17.4% for the SMI, a gap that shows how the broader index's smaller names outperformed the top-heavy 20.[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices)
**Euro Stoxx 50.** The Euro Stoxx 50 represents the largest eurozone companies, with a total capitalization of around EUR 4 trillion, and includes ASML, LVMH, and L'Oréal, while the SMI features Roche, Novartis, and Nestlé. In the 12 months to end-April 2026 the Euro Stoxx 50 rose about 11% while the SMI rose about 7%; over three years since January 2023 the returns were +55% and +22% respectively.[14](https://www.futurevc.co.uk/hubdisplay.cfm?contententryid=197)
**Other concentrated national indices.** Extreme concentration is not unique to Switzerland: ASML, Shell, and Unilever together account for almost 46% of the Dutch AEX, and [Novo Nordisk](https://www.edgepedia.org/novo-nordisk) for almost two-thirds of MSCI Denmark.[13](https://complementa.ch/wp-content/uploads/2024/02/Index-concentration-global-equity-markets_Complementa-02.24-1.pdf)
**SMI versus SPI.** The SMI has 20 components, roughly 85% market-cap coverage and an 18% cap, against the SPI's 200-plus components, about 99% coverage and no hard cap.[8](https://stock-market.ch/blog/smi-index-explained) Within the SMI family, the SLI caps its four largest stocks at 9% each and all others at 4.5%, because the five largest SMI stocks alone account for a combined weighting of around 70%.[2](https://everon.swiss/en/insights/the-most-important-swiss-share-indices)
## Uses in practice
**Derivatives.** Eurex lists SMI futures (FSMI) with a contract value of CHF 1 per index point and maturities up to 36 months on the March, June, September, and December quarterly cycle; the final settlement day is the third Friday of the maturity month, with trading in the maturing future closing at 09:00 CET.[6](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Futures-34674) Standard exchange transaction fees are CHF 0.60 per contract for A-accounts and CHF 0.50 for M- and P-accounts, and block trades require a minimum of 500 contracts.[6](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Futures-34674) SMI options (OSMI) are European-style, exercisable only on the final settlement day until 20:30 CET, with weekly, monthly, quarterly, semi-annual, and yearly expirations and standard fees of CHF 1.18 per contract for A-accounts and CHF 1.00 for M- and P-accounts; block trades require a minimum of 300 contracts.[7](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Options-10212) Historically, Eurex has been the only exchange worldwide offering futures and options on the SMI; during 2004 over eight million SMI futures contracts traded there, a daily average of 31,512, alongside over 3.6 million options.[10](https://www.eurex.com/resource/blob/267320/9eb4a0331fbe7c03ede8a6b1db9b0a8a/data/QckGuide_SMI.pdf.pdf)
**ETFs and funds.** The iShares SMI ETF (CH), launched 6 October 1999, physically tracks the SMIC total-return benchmark with a total expense ratio of 0.35%.[12](https://www.ishares.com/ch/individual/en/literature/fact-sheet/cssmi-ishares-smi-etf-ch-fund-fact-sheet-en-ch.pdf) Other low-cost trackers include the UBS ETF (CH) SMI at a TER of 0.20% and a Lyxor SMI UCITS ETF at 0.15%.[8](https://stock-market.ch/blog/smi-index-explained)
**Structured products.** The SMI is a smaller vehicle for structured products than its eurozone peer: at end-April 2026 the Euro Stoxx 50 carried about 16.6% of total structured-product notional against 1.1% for the SMI, around USD 7 billion, with an average relative delta of 46% versus 22%.[14](https://www.futurevc.co.uk/hubdisplay.cfm?contententryid=197)
## Recent developments
The 2023 index year was shaped by its heavyweights. UBS Group returned +55.73% including dividends, followed by [Partners Group](https://www.edgepedia.org/partners-group) at +55.20% and Holcim at +44.01%, while the losers were Lonza at −21.45%, Roche GS at −12.78%, and Nestlé at −6.63%.[3](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf) Roche and Nestlé's losses weighed on the total performance of the Swiss index in an otherwise positive year.[13](https://complementa.ch/wp-content/uploads/2024/02/Index-concentration-global-equity-markets_Complementa-02.24-1.pdf) In the September 2026 review, Kuehne+Nagel and Swisscom were removed from the SMI in favor of Galderma and Sandoz.[11](https://www.six-group.com/dam/download/market-data/indices/index-messages/index-adjustments-on-the-occasion-of-the-ordinary-index-review-2026.pdf) Returns since have been positive, with benchmark total returns of 7.55% in 2024 and 18.03% in 2025 and record index levels in mid-2026.[12](https://www.ishares.com/ch/individual/en/literature/fact-sheet/cssmi-ishares-smi-etf-ch-fund-fact-sheet-en-ch.pdf) • [5](https://www.ceicdata.com/en/indicator/switzerland/equity-market-index)
## References
1. [SIX Swiss Equity and Real Estate Indices Rulebook, SIX Group](https://www.six-group.com/dam/download/market-data/indices/equity-indices/six-methodology-smi-equity-and-re-en.pdf)
2. [Focus on 7 major Swiss share indices, Everon](https://everon.swiss/en/insights/the-most-important-swiss-share-indices)
3. [Sonderausgabe SMI, Swiss Life Pension Services](https://www.swisslife.ch/content/dam/ch/dokumente/de/unternehmen/slps/SonderausgabeSmiDe_v0100.pdf)
4. [iShares SMI Equity Index Fund (CH) factsheet](https://www.ishares.com/ch/professionals/en/literature/fact-sheet/ishares-smi-equity-index-fund-ch-class-i-nt-a-chf-factsheet-ch0385767725-ch-en-institutional.pdf)
5. [Switzerland Equity Market Index, 1988–2026, CEIC Data](https://www.ceicdata.com/en/indicator/switzerland/equity-market-index)
6. [SMI® Futures – Contract Specifications, Eurex](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Futures-34674)
7. [SMI® Options – Contract Specifications, Eurex](https://www.eurex.com/ex-en/markets/idx/country/six/SMI-Options-10212)
8. [SMI Index Explained: Switzerland's Top 20 Stocks, Stock-Market.ch](https://stock-market.ch/blog/smi-index-explained)
9. [Reduce cluster risks in the Swiss equity market, OLZ](https://olz.ch/en/insights/reduce-cluster-risks-in-the-swiss-equity-market)
10. [Derivatives on the Swiss Market Index SMI®, Eurex brochure (July 2006)](https://www.eurex.com/resource/blob/267320/9eb4a0331fbe7c03ede8a6b1db9b0a8a/data/QckGuide_SMI.pdf.pdf)
11. [Index adjustments on the occasion of the ordinary index review, SIX media release (08.07.2026)](https://www.six-group.com/dam/download/market-data/indices/index-messages/index-adjustments-on-the-occasion-of-the-ordinary-index-review-2026.pdf)
12. [iShares SMI ETF (CH) fund fact sheet](https://www.ishares.com/ch/individual/en/literature/fact-sheet/cssmi-ishares-smi-etf-ch-fund-fact-sheet-en-ch.pdf)
13. [Index concentration in global equity markets, Complementa (February 2024)](https://complementa.ch/wp-content/uploads/2024/02/Index-concentration-global-equity-markets_Complementa-02.24-1.pdf)
14. [Eurostoxx 50 and SMI: An Exposure Comparison, FutureVC](https://www.futurevc.co.uk/hubdisplay.cfm?contententryid=197)
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*Topic: Encyclopedia › Society and history › Economics and business › Finance › Stock exchanges and securities markets*
*Initially written Sep 17, 2026 · Reviewed: Sep 30, 2026; Oct 10, 2026 · Edited: Sep 30, 2026; Oct 10, 2026; Oct 11, 2026; Oct 15, 2026 · Last review: Oct 10, 2026*
*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*
License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license