What is the S&P/ASX 300?
The S&P/ASX 300 is a stock market index managed jointly by Standard & Poors and the Australian Stock Exchange. It gives investors a benchmark for Australian companies with market capitalisations above AUD 100 million. It contains small, mid and large cap firms and includes approximately 80% of all Australian equities.
Where have you heard about the S&P/ASX 300?
Your broker can give you information about investing in foreign companies. Australia is a developed market and has particularly strong financial and materials sectors. The smaller S&P/ASX 200 Index is the better-known benchmark, but the S&P/ASX 300 includes 100 smaller companies to give a broader exposure to the Australian market.
What you need to know about the S&P/ASX 300.
The S&P/ASX 300 offers the broadest exposure to Australian companies. As of August 2017, the largest sectors were financials, materials and real estate, and five of the largest ten companies in the index are Australian banks. The materials sector is strongly linked to China’s economy as Australian mining companies produce the raw materials needed for Chinese firms to produce finished goods. The sector has outperformed significantly versus the broader index in the last ten years. You can easily invest in the index using the Vanguard Australian Shares Index ETF, but there are currently no liquid futures or options contracts available.