Always Original

An Integral Part of the Australian Landscape

Active vs. Passive Performance in Australia

At a Glance – Construction of the S&P/ASX 200

The Power of the Index: The S&P/ASX 200

Beyond the S&P/ASX 200

  • Equities

    The S&P/ASX equity index series includes the S&P/ASX 200, S&P/ASX 300, S&P/ASX 20, S&P/ASX 50, S&P/ASX 100, S&P/ASX All Ordinaries, and S&P/ASX Small Ordinaries—all reflecting different facets of the Australian equity market. This series also contains market-cap indices that make it possible to target exposure by size.

  • Sectors

    The S&P/ASX sector indices follow the GICS® classification system. In addition, S&P DJI recognizes other industry segments relevant to the Australian market and calculates indices for the following segments: Australian Real Estate Investment Trusts (A-REIT), Financials Ex-A-REIT, Industrial and Resources, Metals & Mining, and Gold.

  • Fixed Interest

    The S&P/ASX fixed interest series complements the S&P/ASX equity series by providing a complete offering across key fixed interest asset classes, including bank bills and inflation-linked investments.

  • Strategy

    The S&P/ASX strategy indices track well-known factors including size, value, momentum, quality, low volatility, and dividends—each of which has exhibited distinctive patterns of performance over market cycles.

  • Volatility

    The S&P/ASX 200 VIX® (A-VIX) index—known as the “fear barometer” of the Australian market—reflects expected equity market volatility over the next 30 days. It does this by using mid prices for S&P/ASX 200 put and call options to calculate a weighted average of the implied volatility of the options.

  • Tax Aware

    The S&P/ASX Franking Credit Adjusted Indices provide a measure of Australian equities' after-tax performance, which can help evaluate the tax-effectiveness of tax-exempt investor and superannuation portfolios.

Key Indices

  Last Change % Change

Index-Linked Investment Products Tracking the S&P/ASX Indices

ETFs and Index Managed Funds

These products are widely available, easy to buy and sell, and designed to meet a variety of investment goals. The funds’ issuers, sometimes referred to as sponsors, are financial services companies. Some of these firms concentrate on either ETFs or index managed funds, while others offer both types of products. While index managed funds have been on the market almost twice as long as ETFs, there are now almost twice as many ETFs as index managed funds globally. Even with the rapid expansion of ETFs in Australia, the first ETF listed in Australia in 2001—tracking the S&P/ASX 200—remains the largest ETF with over AUD 3 billion in assets under management.

Australian ETF & ETP Growth

Download the list of ETFs listed on the ASX.

Index-Linked Options and Futures

Options exchanges and futures exchanges offer contracts on market indices, such as S&P/ASX 200 Index Options and S&P/ASX 200 Futures. While these derivative products differ in some important ways, they are similar in that they allow investors—both retail and institutional—to hedge or to speculate on the level of the underlying index on the date when the contract expires, which is specified in the contract.

Since the Australian equity market has historically been only slightly correlated to the U.S. market, the S&P/ASX 200 VIX futures can be used to more accurately gauge equity market volatility in the local Australian market.

To find out more about S&P/ASX index derivatives, please visit: https://www.asx.com.au/products/index-derivatives.htm.

Structured Products

Structured products pay interest only at maturity, subject to terms that vary substantially from product to product. Commercial and investment banks issue a variety of index-linked structured products based on the S&P/ASX indices.

Structured products can range from the fairly conservative to the highly speculative and extremely complex. At one end of the scale, there are structured products that offer principal protection and income generation, though limited return. At the other end, some of the products offer the potential for greater return but at the risk of being exposed to significant leverage.

This variety makes structured products potential diversification tools for high-net-worth investors and asset managers. Structured products are also seen as tools for enhancing returns.

Research & Insights

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    Rotation Strategies and Their Role in the Australian Market

    How do sector rotation strategies based on price momentum and economic cycles perform in Australia?

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    Mid-Cap Indexing in Australia

    The Australian mid-cap segment offers diverse sector representation.

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    Measuring Volatility in Australia

    Understand the fear gauge for the Australian equity market.

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    How Smart Beta Strategies Work in the Australian Market

    Examine the effectiveness of six well-known risk factors in Australia.

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    Measuring the Australian Bank Bill Market for Short-Term Cash Solutions

    How does the Australian bank bill market satisfy short-term cash balance investments?

More Resources

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