Swiss Market Index

The Swiss Market Index is Switzerland's blue-chip stock market index, which makes it the most followed in the country. It is made up of 20 of the largest and most liquid Swiss Performance Index stocks. As a price index, the SMI is not adjusted for dividends.
The SMI was introduced on 30 June 1988 at a baseline value of 1,500 points. It closed above the symbolic level of 10,000 points for the first time on 2 July 2019. It reached the 12,000 point milestone on 17 June 2021. It is currently in a bear market, which it entered on 22 September 2022 after losing more than 20%. This ended the bull market that had reached an all-time record closing price short of 13,000 on 28 December 2021.
Its composition is examined once a year. As of September 2022, it contains 18 large-caps and two mid-caps. Calculation takes place in real-time. As soon as a new transaction occurs in a security contained in the SMI, an updated index level is calculated and displayed. However, the index is updated no more than once per second. The SMI is calculated in Swiss Francs, the currency of Switzerland.
The securities contained in the SMI currently represent approximately 70% of the free-float Swiss equity market capitalization, as well as 85% to 90% of the total trading turnover of Swiss and Liechtenstein equities listed on the SIX Swiss Exchange. Because the SMI is considered to be a mirror of the overall Swiss stock market, it is used as the benchmark for numerous mutual funds, index funds and ETFs, and as the underlying index for numerous derivative financial instruments such as options, futures and structured products.
In 2020, the SMI, along with other SIX indices, was endorsed under the EU Benchmarks Regulation and is registered with the European Securities and Markets Authority, which means that it can be used as an underlying for financial products sold in the EU.

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Rules

Acceptance criteria

The underlying universe of the SMI, from which candidate constituents are selected, is the SPI. To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalization. On the one hand, it must represent at least 50% of the average liquidity of the SPI constituent issues. On the other hand, it must have a minimum free-float capitalization equal to 0.45% or more of the entire SPI capitalization. Thus, trading volume and capitalization are the determining factors in the quarterly rankings. The composition of the index is reviewed annually on the third Friday in September.

Fixed number of 20 securities

The SMI comprises a fixed number of 20 securities as of the ordinary review date in September 2007. Prior to this date, the index contained 25 listings.
It is worth noting that the number of constituents of the index is below the generally accepted minimum sample size of 30 required to reach statistical significance.

Capped weightings

In 2017, in order to address the issue that the top three constituents account for more than 60% of the index capitalization, SIX Swiss Exchange changed the rules of the SMI to introduce capped weighting. The weight of any constituent in the SMI index can no longer exceed 18%.
Readjusting any weight exceeding 18% down to that value is done, in principle, on a quarterly basis. However, whenever a constituent reaches a weight exceeding 20% during a quarter, then the weight is brought back to 18% without waiting for the next quarterly review.
To make the transition smoother, there was an initial transition period during which these changes were progressively implemented, in steps of at most 3% per quarter.
Additionally, a new index, the SPI 20, was created to continue indexing the 20 SMI constituents without any caps.

SMI constituents

Current constituents

As of 13 June 2023, the following 20 stocks make up the SMI index.
The rank is based on free-float capitalization as of 13 June 2023. The first ten weights are given as of 28 April 2023. The other weights are given as of 23 March 2020. The latest update following the ordinary review was implemented in June 2023, when Kuehne + Nagel replaced Credit Suisse Group.

Rank	Name	Industry	Ticker	Canton	Weighting in %
1	Nestlé SA	Food		Vaud	19
2	Roche Holding AG	Pharmacy		Basel	17
3	Novartis International AG	Pharmacy		Basel	17
4	Compagnie Financière Richemont SA	Luxury Goods		Geneva	7
5	Zurich Insurance Group AG	Insurance		Zurich	6
6	UBS Group AG	Banks		Zurich/Basel	5
7	ABB Ltd	Electrical equipment		Zurich	4
8	Lonza Group AG	Chemistry		Basel	4
9	Sika AG	Chemistry		Zug	3
10	Alcon Inc	Pharmacy		Fribourg	3
11	Givaudan SA	Chemistry		Geneva	3
12	Holcim Limited	Building materials		St. Gallen	2
13	Swisscom AG	Telecommunications		Bern	2
14	Partners Group Holding AG	Private equity		Zug	2
15	Swiss Reinsurance Company Ltd	Insurance		Zurich	2
16	Sonova	Medical devices		Zurich	2
17	Geberit AG	Sanitary engineering		St. Gallen	2
18	Swiss Life Holding AG	Insurance		Zurich	1
19	Logitech International SA	Computer hardware and software		Vaud	1
20	Kuehne + Nagel	Logistics		Schwyz	1

SMI family

SMI is also the name of a family of indices encompassing the SMI itself, but also the SMI MID with the next 30 large-caps and mid-caps, and the SMI Expanded with all 50 shares.
The indices are available in several variations. For example, the SMI, which is a price index, also exists as a performance index, the SMI Cum Dividend, which takes into account dividend distributions.

History

Date	Event
June 2007	The ranking as of 30 June 2007 determined which companies would remain within the SMI after the number of issues was changed to 20. On 5 July 2007, SWX announced that Ciba Specialty Chemicals, Lonza Group, Givaudan, SGS and one of the two classes of shares of Swatch Group would leave the SMI as of 24 September 2007 leaving 20 securities in the index.
September 2009	Nobel Biocare and Bâloise replaced by Lonza Group and SGS.
June 2010	Swiss Life replaced by Transocean.
September 2011	Lonza Group replaced by Givaudan.
June 2012	Synthes replaced by Geberit following the merger with Johnson & Johnson.
January 2016	Transocean replaced by Swiss Life.
May 2017	Actelion replaced by Lonza Group after Actelion's purchase by Johnson & Johnson. In the same month, Sika AG replaced Syngenta after its purchase by ChemChina.
June 2018	Sika announced a 1:60 stock split. Before this change, it was the SMI constituent with the highest price per share.
April 2019	Julius Bär replaced by Alcon after a spin-off from Novartis.
September 2020	Adecco replaced by Partners Group after the ordinary index review.
May 2021	LafargeHolcim renamed to Holcim.
September 2021	Swatch Group was replaced with Logitech.
September 2022	SGS SA was replaced with Sonova.
June 2023	Credit Suisse Group was replaced with Kuehne + Nagel on June 12/13, 2023.
June 2025	Amrize was spun-off from Holcim on June 23, 2025. Amrize was kept in the Index for two more month before a final decision was taken. This handling was chosen, because the date of the spin-off was too close to the deadline of the annual index review. As a result of this, the index contained 21 instead of 20 constituents for that period of time.

Historical values

The following table shows the annual development of the Swiss Market Index since 1988.

Milestones

The following table shows historic milestones of the Swiss Market Index. Latest seen values are not final: italic indicates that the value may be seen again if the bear market persists; parentheses indicate that the value will be seen again if we reenter a bull market ; Other values may be seen again in case of a crash.
To keep the scale logarithmic, it uses increments similar to exchange ticks: 1 between 5 and 10, 2 between 10 and 20, 5 between 20 and 50, 10 between 50 and 100, etc.