Euro STOXX 50 Index: What it is, Components and Quotation


The Euro STOXX 50 Index is a stock index composed of 50 stocks from 8 countries from the Eurozone, and represents the flows and trends of the largest capitalization companies in the EU area.

Index Composition: Which Companies it Includes

Founded in 1998 by STOXX Limited, a joint venture created just one year earlier by Deutsche Börse AG, Dow Jones & Company and SWX Group, its composition is reviewed and revised every year in September.

To date, the index has among its leading companies, some of the biggest names on the Italian scene (Enel, Eni spa and Intesa), the great German industry (BMW, Daimler, Siemens, Volkswagen), French fashion (Kering, Louis Vouitton, L’Oreal), the best Spanish groups (Inditex, Santander, Iberdrola) and many others.

The index boasts a fairly varied company portfolio and includes a representation of the main industrial sectors throughout the Eurozone. In fact, its diverse product categories make it a major player in the financial market, placing it at the center of the global economic intermediation system.

Price and Historical Performance

Whatever the index on which you decide to invest your capital, whether you are buying or selling, it will be fundamental to know how to use with a certain familiarity what is the main tool of the good investor: the chart. Whether linear, bar or Japanese, it is important to have constantly monitored the real vision of the market trend and its oscillations.

See also  Forex Investments: Meaning, How It Works, What They Are, Benefits and Risks

And by looking at the chart and the STOXX 50 quotes in the last 5 years, it is possible to notice how its quote was, at the beginning of 2017, 3,270 points, against about 4,141 today, with a growth of almost 20% only in the last calendar year. The STOXX 50 quotes seem, therefore, to be among the most reliable on the market, maintaining a fairly constant and linear growth trend over time.

How to Buy Euro STOXX 50 Shares

The index is available in different currencies (EUR, USD, CAD, GBP, JPY), and there are various solutions available to decide to buy its value: through banking institutions, through stock brokerage firms (SIM), or by choosing a financial broker.

If you go to a banking institution (bank), you will have to open a current account specially developed to be able to operate with the stock markets, accruing, however, commissions applied sometimes higher than its competitors. 

SIMs, or the “brokers” of the past, unlike banks, deal only with securities brokerage and offer only particular types of investment services.

Financial brokers, on the other hand, are all those online platforms that use the internet to assist, share and interact with the user, in order to accompany and support him in the process of buying and selling shares. The latter turn out to be more effective than the former, as the technology they offer makes available economic tools that are increasingly technically perfected, managing to have a greater and broader vision of market trends.

Among the many platforms available on the market today, we can say that eToro undoubtedly plays a role as a true leader. Initially born as an innovative project of social trading, over time it has become the largest player in the world, boasting one of the most important and active communities in the industry, and thousands of users who daily make transactions by fully interacting with the platform.

See also  Investing in Vanguard ETFs: Is it worth it?

The commission fees are zero, there are no tickets or management costs, and also offers the possibility to use a free Digital demo, which is a test tool in all respects identical to the original, but where the money is virtual, so you have the opportunity to practice before investing real capital.

Final Thoughts: Forecast for the Future

With the solidity of the EU zone, the guaranteed annual variability of its companies and the great variety of different types present within it, the Euro STOXX 50 remains a cornerstone of the entire gloable market economy. It is no coincidence that it has been chosen and considered the fundamental instrument by the financial institutions themselves, who use it as a reference for a wide range of solutions, such as Exchange Traded Funds (ETFs), or even futures, options and other types of products.

Like any other type of investment, it must be stressed that no operation will ever guarantee a 100% secure gain, as the fluctuations and the fluctuations of the market undergo continuous variations based on a large number of factors, which very often are also of an extra-financial nature. However, the Euro STOXX 50 remains an index of a certain importance within the global financial market.


See also  Invesco QQQ ETF: What is it, How it works, Listing

Leave a Comment