How is the SMI made up?

15.04.2025

The Swiss Market Index (SMI), affectionately known as “Smiley”, was launched in June 1988. This particular index is often discussed in stock market news. But what lies behind the SMI, and what importance does it have for daily trading on the Swiss stock exchange?

At a glance

  • The Swiss Market Index (SMI) tracks the development of the 20 most important Swiss companies and is the most well-known stock market barometer in Switzerland.
  • With over 90 percent of Switzerland’s market capitalization, the SMI is mainly characterized by large companies in various sectors.
  • The SMI is purely a price index, while the Swiss Performance Index (SPI) also takes dividend payments into account and tracks a wider market.

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Let’s start with the basics: an index  indicates and documents a selection of share prices. The SMI is to Switzerland what the DAX is to Germany and the Dow Jones is to the USA. It is the nation’s most widely observed stock market barometer and indicates the share price performance of 20 leading Swiss companies. The SMI shows how these prices perform on average.

20 companies determine the trend

The 20 securities that make up the SMI account for a total of 90% of market capitalization in Switzerland. In financial jargon, these are known as blue chips, which are extremely high-revenue shares  in major corporations. That’s why the SMI is also known as the blue chip index. It contains shares from various categories such as luxury goods, insurance, electrical engineering (ABB) and banks (UBS). However, over 50 percent of the index’s weighting is accounted for by three companies – Roche (pharmaceuticals), Nestlé (food products) and Novartis (pharmaceuticals). You can find the exact composition of the SMI and the latest values of the individual companies on SIX.

What does the index mean for the Swiss stock exchange?

The Swiss Market Index is the most important barometer of the Swiss stock exchange and provides a realistic picture of the Swiss stock market. However, it is worth bearing in mind that its composition does not cover all sectors of the economy. Investors who structure their portfolio in line with the SMI therefore have a relatively low level of diversification.

SMI and SPI – what’s the difference?

Besides the SMI, the Swiss Performance Index (SPI) is Switzerland’s most important share index. It includes almost all of the exchange-listed Swiss private limited companies – totalling over 200 securities – and is seen as the overall index for the Swiss stock market. The SPI is a so-called total return index. In contrast to the SMI, the SPI also takes account of dividend payments in index performance. The SMI on the other hand is purely a price index. The index value is determined solely on the basis of share prices.

“The SMI closes up 0.2%”

The value of the SMI is indicated in points. These points reflect how the value of the SMI has increased compared to its level at the outset in 1988. The initial value was set at 1,500 on a purely arbitrary basis. If the exchange closes today at 11,500 points, for example, the SMI is above the value in 1988. The statement “the SMI closed up or down X percent”, which you often hear in stock market news, refers to the value on the previous day.

Five facts about the SMI

  • The SMI was established on 30 June 1988 with a value of 1500 points.
  • The SMI is regarded as being representative and is used as a base value for other financial products.
  • In June 2007, the SMI closed on over 9,500 points for the first time. It hit its historical peak in terms of closing price in January 2018 (9556.98 points).
  • It fell to its historical low in March 2003 when the dotcom bubble burst. It plunged to 3,675.43 points at one point.
  • The number of securities has been set at 20 since 2007. It was 29 in 1993.
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