25 years of Indexing Excellence
25 years of S&P Dow Jones Indices and ASX
25 years of S&P Dow Jones Indices and ASX
In partnership with S&P Dow Jones Indices, ASX provides a range of indices and related products, enabling investors to gain exposure to a region, market sector, asset class or strategy.
The S&P/ASX 200 has defined and transformed how market participants engage with the Australian equity market.
An institutional-grade index that is widely considered the official benchmark of the Australian equity market, the S&P/ASX 200 Index is accessible to all investors through ETFs, options, and warrants.
S&P/ASX Index Series represents the most widely used benchmarks for Australian investment funds and serves an integral role in Australia’s investment infrastructure. Most working Australians would have at least some investment weight in products linked to S&P/ASX Indices via their superannuation.
S&P/ASX indices at a glance
Source: S&P Dow Jones Indices
Key moments in the history of the index
The S&P/ASX 200 was launched on April 3, 2000. All information for an index prior its Launch Date is back-tested, based on the methodology in effect on the Launch Date. However, when creating back-tested history for periods of market anomalies or other periods that do not reflect the general current market environment, index methodology rules may be relaxed to capture a large enough universe of securities to simulate the target market the index is designed to measure or strategy the index is designed to capture.
For example, market capitalization and liquidity thresholds may be reduced. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.
Indices insights and trends
PODCAST | THE IDEAS EXCHANGE
ETFs: building blocks for a diversified portfolio
In this episode, our investment specialists discuss how investors can build an entire portfolio using ETFs and the benefits of indices.
S&P/ASX indices have played a vital role in the growth of the ETF and derivatives ecosystem
Source: ASX Investment Products Report – February 2025
ETFs
Exchange Traded Funds (ETFs) have proven to be the favourable vehicle for investing in index-based strategies, and it was not long after the launch of the S&P/ASX index series that the first ASX listed ETFs were launched by State Street Global Advisors in 2001. There are now nearly 400 ETFs listed in Australia with assets in excess of AUD $240 billion[1].
Today, the S&P/ASX Index Series remains at the core of the Australian ETF industry. As of December 31, 2024, domestic equity-focused ETFs listed in Australia had attracted AUD $58 billion in investments, of which 62% (AUD $37 billion) were based on S&P/ASX Indices. In addition, the top three Australian ETFs by assets under management are all linked to S&P/ASX indices and are among those with the best trading spreads and liquidity in the market.
Listed derivatives account for ~60% of ASX’s total traded value
The S&P/ASX Index Series has also seen an increase in trading volumes alongside asset growth. With their expanded use cases and higher frequency of trading, index derivatives trading volume has surged much faster than that of Australian stocks over the years, now accounting for a significant portion of the listed market liquidity.
Exhibit X3: S&P/ASX Index Listed Derivatives Account for ~60% of ASX's Total Traded Value[2]
Source: S&P Dow Jones Indices LLC, ASX, Bloomberg. Data as of 31 December 2024. Based on products listed on the ASX. The delta adjustment for the S&P/ASX 200 options is around 0.23. Chart is provided for illustrative purposes.
The S&P/ASX 200 ecosystem
The accumulation of assets and trading volumes across various index-linked products has fostered a robust ecosystem around the S&P/ASX indices. Beyond the links between products tracking the same index, there exists a network of connections among related products and indices that supports liquidity and pricing in each other. The aggregate traded economic value in the S&P/ASX ecosystem exceeded USD 1.9 trillion in 2024, equivalent to AUD 2.9 trillion.
Exhibit X4: The S&P/ASX 200 Ecosystem – Aggregate Index Equivalent Trading Volume in USD Billions
Source: S&P Dow Jones Indices LLC, ASX, Bloomberg. Data from the 12-month period ending 31 December 2024. Based on products listed on the ASX and other exchanges. The delta adjustment for the S&P/ASX 200 options is around 0.23. Leveraged ETFs are included with delta adjustment. Chart is provided for illustrative purposes.
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[1] ASX as of 31 March, 2025.
[2] Based on Index Equivalent Trading (IET) volume which reflects the economic exposure at the time of transaction; it is determined by the instrument’s short-term responsiveness to movements in the underlying asset. In the case of options, the IET is calculated by multiplying the average “delta” to the traded notional value.
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