Each index measures the performance of the largest companies listed on its national exchange, weighted by free-float market capitalisation. But "largest companies" means very different things across Europe — ASML dominates the AEX, LVMH dominates the CAC, Shell sits atop the FTSE 100. The sector mix of each index determines how it responds to macro events.
🇳🇱AEXAmsterdam Exchange Index · Euronext Amsterdam · 25 stocks
Top weights: ASML (~25%), Shell, ING, Heineken
Tech-heavy (ASML dominates). Sensitive to semiconductor cycles and EUR/USD.
🇩🇪DAXDeutscher Aktienindex · Xetra (Frankfurt) · 40 stocks
Top weights: SAP, Siemens, Allianz, BASF, Volkswagen
Industrial & chemical-heavy. Total return index (dividends reinvested). Export-driven — sensitive to global trade and EUR/USD.
🇫🇷CAC 40Cotation Assistée en Continu · Euronext Paris · 40 stocks
Top weights: LVMH (~15%), TotalEnergies, Hermès, L'Oréal, Sanofi
Luxury and energy-heavy. Price return index (dividends not included). Strong global luxury exposure through LVMH/Hermès.
🇬🇧FTSE 100Financial Times Stock Exchange 100 · London Stock Exchange · 100 stocks
Top weights: Shell, HSBC, AstraZeneca, Unilever, BP
70%+ of revenues from outside UK. Mining, energy, pharma, and banking. GBP-denominated — sensitive to GBP/USD.
🇪🇸IBEX 35Índice Bursátil Español · Bolsa de Madrid · 35 stocks
Top weights: Banco Santander, BBVA, Inditex, Iberdrola, Telefónica
Banking, utilities, telecoms, and retail (Inditex/Zara). High LatAm exposure via Santander and BBVA.
🇮🇹FTSE MIBFTSE Milano Italia Borsa · Borsa Italiana (Milan) · 40 stocks
Top weights: Enel, Intesa Sanpaolo, Unicredit, Ferrari, Stellantis
Banking-heavy with significant BTP spread sensitivity. Ferrari and Stellantis add luxury and auto exposure.
Key insight
The DAX is a total return index — dividends from DAX companies are reinvested into the index. The CAC 40 is a price return index — dividends are not included. This means DAX long-run performance looks better than CAC 40 on a like-for-like basis, even if the underlying companies performed similarly.
For investors wanting a single eurozone benchmark rather than six country-specific indices, the Euro Stoxx 50 is the standard. It contains the 50 largest eurozone companies across 11 member states. Most European equity ETFs tracking "the European market" use Euro Stoxx 50 or MSCI Europe as their benchmark.
Key constituents: ASML, LVMH, SAP, TotalEnergies, Siemens, Sanofi, Airbus, Allianz, L'Oréal, Schneider Electric. It is notably absent of UK stocks (post-Brexit) and Nordic companies not in the eurozone.
For informational purposes only. Not investment advice under MiFID II Article 24. Index compositions and weightings change. Verify current constituents with the relevant index provider.