Swiss Market Index definition
The Swiss Market Index (SMI) is Switzerland’s blue-chip stock market index, which makes it the most important in the country initiated in 1988. It is considered a benchmark index for Swiss stocks introduced with a baseline value of 1500 points. An SMI index composed of 20 blue chip companies in Switzerland. It consists of large- and mid-cap stocks and is weighted for market capitalization, meaning price changes for companies with higher market caps affect the price of the index more.
What does the Swiss Market Index stand for?
The Swiss Market Index (SMI) is Switzerland’s blue-chip stock market index is the most important stock index in Switzerland and comprises the 20 largest stocks from the SPI.
How the Swiss Market Index is calculated?
The SMI index is calculated using the Laspeyres method with the weighted arithmetic mean of a defined number of securities issues. The index level is calculated by dividing the market capitalization of all securities included in the index by a divisor. The calculation takes place in real-time. Whenever a new transaction occurs in security contained in the SMI, an updated index level is calculated and displayed.