Now a “cornerstone of Australia’s financial markets”, ASX said that, upon launch, the combined value of companies in the S&P/ASX 200 was just over $600 billion.
Meanwhile, listed companies needed a market capitalisation of $180 million to be included.
Now, the index’s combined value has grown to over $2.6 trillion in size, growth of 341 per cent, with companies now requiring an average six-month, float-adjusted market capitalisation of above $700 million to be eligible for inclusion in the index.
“For 25 years, the indices have provided investors with a trusted and transparent measure of Australian market performance,” managing director Helen Lofthouse said on Thursday.
“They have supported the growth of Australia’s investment ecosystem, driving product innovation, enabling passive and active investment strategies, and fostering international engagement with our market.”
The market operator explained that the indices have needed to evolve as Australia’s economy and global investment trends have. Today, the suite of indices now includes benchmarks for sector-specific exposures like technology, resources and financial.
ASX also pointed to Australia’s burgeoning exchange-traded fund (ETF) market, with index tracking ETFs having grown from around 100 funds managing approximately $16 billion in funds under management (FUM) a decade ago, to over 250 funds with $200 billion in FUM.
“This surge underscores the vital role that indices play in providing investors with transparent, diversified and cost-effective market exposure,” Lofthouse added.
“As investor demand for efficient portfolio solutions continues to rise, the evolution of ETFs and index-based investing remains a key driver of market accessibility and innovation.”
Developed in partnership with S&P Dow Jones Indices, ASX said the index series has grown to become the “definitive measure” of the Australian equity market.
S&P Dow Jones Indices chief executive Dan Draper celebrated the milestone.
“As we celebrate the 25th anniversary of the S&P/ASX Index Series, we reflect on its profound impact in shaping the investment landscape in Australia and beyond,” Draper said.
“The Index Series has been foundational to the growth of index-based investing in Australia, serving as a reliable benchmark that enables investors to track market performance, generate insights and make informed decisions.”
