Where have you heard about the Swiss Market Index (SMI)?

What is the Swiss Market Index (SMI)?

The Swiss Market Index, also known as the SMI, includes 20 of the country's largest and most liquid Swiss Performance Index (SPI) blue-chip stocks, which makes it the most important in the country.

The index is used as as a performance index for a number of derivative products, including options and futures and is not adjusted for dividends.

Since it's generally regarded as Switzerland's top-tier stock index, you may hear investors talk about the SMI when they're reviewing the performance of the country's wider economy.

What you need to know about the Swiss Market Index (SMI).

The index was set up back in June 1988, with a base level of 1,500 points.

The SMI's value is calculated on a real-time basis, while its members are reviewed (and if necessary updated) once each year. It's operated by the SIX Swiss Exchange, which serves as the main stock exchange in Switzerland.

The index used to contain a total of 25 companies, but this number was narrowed down to 20 in September 2007 by the SIX Swiss Exchange.