The S&P/ASX 200 (INDEXASX: XJO) is Australia’s leading share market index and contains the top 200 ASX listed companies by way of float-adjusted market capitalisation.
In April 2000, it replaced the All Ordinaries to become Australia’s primary investment benchmark and accounts for 81% (March 2020) of the Australian equity market.
• Used as the basis of multiple index products (e.g. VIX, SPI 200 Futures)
• Indirect investment available through ASX listed index funds (e.g. SPDR, iShares)
The high percentage of market representation gives the index a dual function:
1. To provide an accurate benchmark for the stock market as a whole
2. Give institutional investors a highly liquid and tradable index
Listed companies place significant importance on their inclusion in the ASX 200 as it generates institutional interest, encourages investment and often entices research by stockbroking firms and analysts.
A five panel "Index Committee" rebalances the ASX 200 quarterly to ensure listing criteria and liquidity are maintained. Visit the Index Methodology & Calculation page for more information on the construction, maintenance and company selection criteria.