The IBEX 35 is the benchmark stock market index of Spain.
As the benchmark index, it s a good indicator of the performance of the Spanish stock market.
The IBEX 35 is composed of the 35 largest companies listed on the Spanish stock exchange, the Bolsa de Madrid.
What is the IBEX 35?
The IBEX 35, short for “Iberia Index,” is the benchmark stock market index of the Bolsa de Madrid, Spain’s primary stock exchange.
It represents the performance of the 35 most liquid and highly capitalized Spanish stocks.
The IBEX 35 serves as a barometer of the Spanish stock market and a proxy for the overall health of the Spanish economy.
History of the IBEX 35
The IBEX 35 was launched on January 14, 1992, by Bolsas y Mercados Españoles (BME), with a base value of 3,000 points.
Since its inception, the index has experienced various periods of growth and decline, reflecting the ups and downs of Spain’s economy and the global financial markets.
The index has undergone several adjustments and rebalancings over the years to maintain its representation of the Spanish market’s most significant stocks.
Components and Calculation
The IBEX 35 is a market capitalization-weighted index, meaning that each stock’s weight in the index is proportional to its market capitalization.
The index is calculated in real-time during trading hours and is reviewed and rebalanced twice a year, typically in June and December.
This ensures that the index continues to reflect the performance of the most relevant and liquid companies in Spain’s stock market.
The components of the IBEX 35 include companies from various sectors, such as banking, telecommunications, energy, and construction.
Examples of Companies in IBEX 35
The IBEX 35 is comprised of 35 leading companies from various sectors in Spain.
While the components of the index may change due to periodic reviews and rebalancing, here are some examples of well-known stocks in the IBEX 35:
- Banco Santander (SAN) – A major international banking group with a strong presence in Spain and other countries.
- BBVA (BBVA) – Banco Bilbao Vizcaya Argentaria, another prominent Spanish multinational banking institution.
- Iberdrola (IBE) – A leading global utility company, mainly focused on renewable energy and electricity networks.
- Telefónica (TEF) – A large multinational telecommunications company providing services across Europe and Latin America.
- Inditex (ITX) – The parent company of the popular fashion retailer Zara and other retail brands.
- Amadeus IT Group (AMS) – A multinational technology company providing IT solutions to the travel and tourism industry.
- CaixaBank (CABK) – One of Spain’s largest banks, offering retail and corporate banking services.
- Naturgy Energy Group (NTGY) – A Spanish multinational natural gas and electrical energy utilities company.
- Repsol (REP) – A global energy company engaged in oil and gas exploration, production, and refining.
Trading the IBEX 35
Investors can gain exposure to the IBEX 35 through various financial instruments, including:
- Exchange-Traded Funds (ETFs): ETFs are investment funds that track the performance of a specific index or sector. Several ETFs are designed to replicate the performance of the IBEX 35, providing a straightforward way to invest in the index.
- Futures and Options: Investors can trade IBEX 35 futures and options contracts on the MEFF, Spain’s financial derivatives exchange. These contracts allow traders to speculate on the index’s future performance or hedge against potential losses.
- Contracts for Difference (CFDs): CFDs are derivative products that enable investors to speculate on the price movements of the IBEX 35 without owning the underlying assets.