IBEX 35 Index: A Comprehensive Overview

What is the IBEX 35 Index?

The IBEX 35 Index is a stock market index that tracks the performance of the 35 most liquid stocks traded on the Bolsa de Madrid, the Spanish stock exchange.

It is a capitalization-weighted index, which means that the stocks with the highest market capitalization have the greatest influence on the index's value.

The IBEX 35 Index is considered a benchmark for the Spanish stock market, and it is often used by investors to track the overall performance of the Spanish economy.

History of the IBEX 35 Index

The IBEX 35 Index was first launched in 1986, and it has since become one of the most important stock market indices in Europe.

The index has undergone several changes over the years, including a number of revisions to the list of stocks that are included in the index.

The most recent revision to the index was made in 2020, when the number of stocks in the index was increased from 33 to 35.

Composition of the IBEX 35 Index

The IBEX 35 Index is composed of 35 stocks from a variety of sectors, including:

• Financials
• Energy
• Telecommunications
• Construction
• Utilities

The largest sector in the index is financials, which accounts for over 30% of the index's total market capitalization.

The largest company in the index is Banco Santander, which has a market capitalization of over €60 billion.

Performance of the IBEX 35 Index

The IBEX 35 Index has performed well over the long term, with an average annual return of over 7%.

However, the index has also experienced periods of volatility, including during the financial crisis of 2008-2009, when the index lost over 50% of its value.

The IBEX 35 Index is currently trading at around €9,000, which is close to its all-time high.

Conclusion

The IBEX 35 Index is a major stock market index that tracks the performance of the Spanish stock market.

The index is composed of 35 stocks from a variety of sectors, and it is heavily weighted towards the financial sector.

The IBEX 35 Index has performed well over the long term, but it has also experienced periods of volatility.