The Eurostoxx 50 is the main European stock market index , where the 5th most important companies in Europe from 19 different sectors, represented by 12 eurozone countries, are listed .Among them, we can find SAP, Banco de Santander, Unilever, AXA Group, Daimler, etc. The index has its contribution base since December 31, 1991 with a value of 1000 points, being an index weighted by market capitalization, therefore, not all the companies that compose it have the same weight.
The countries with the greatest weight in this index are France, Germany, Italy, Spain, Finland, the Netherlands and Belgium.
This index has a wide variety of industrial sectors and is also a relevant indicator that measures the economic situation in Europe. Some technicians who formulate it belong to Dow Jones & Company, so it is also known as Dow Jones EUROSTOXX50.
It is widely used as an underlying asset because it allows replication in derivative productssuch as Futures, Options , ETFs , CFDs and Warrants . In addition, it has the function of serving as a Benchmark or as a reference asset for investment fund managers. Currently, numerous funds, deposits and insurance are referenced to its evolution. It is common to see how investors build a portfolio that exactly replicates the composition of this index, to obtain a similar revaluation.
The Eurostoxx50 is reviewed once a year. In its review, Stoxx, which is the company that is responsible for calculating the index, takes into account variables such as turnover, or loss of capitalization of the securities, being replaced by more consistent ones.