IBEX 35: A Guide to the 35 Largest Spanish Stocks

What is the IBEX 35?

The IBEX 35 is a stock market index that tracks the performance of the 35 most liquid and traded stocks on the Bolsa de Madrid, the Spanish stock exchange. It is a capitalization-weighted index, meaning that the companies with the largest market capitalizations have the greatest impact on the index's performance.

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

History of the IBEX 35

The IBEX 35 was launched on January 14, 1992, with a base value of 3,000 points. The index has since grown significantly, reaching a record high of over 15,000 points in 2007. However, the index was hit hard by the global financial crisis of 2008 and fell to a low of under 6,000 points in 2009.

Since then, the IBEX 35 has recovered and has been trading at around 9,000 points in recent years.

Composition of the IBEX 35

The IBEX 35 is composed of companies from a variety of sectors, including banking, energy, construction, and telecommunications. The largest companies in the index include Banco Santander, Iberdrola, and Telefonica.

The composition of the IBEX 35 is reviewed every six months by a committee of experts. Changes to the index are made to ensure that it reflects the changing composition of the Spanish stock market.

Performance of the IBEX 35

The IBEX 35 has performed well over the long term. Since its launch in 1992, the index has returned an average of over 8% per year. However, the index has been volatile in recent years, and its performance has been affected by the global financial crisis and the COVID-19 pandemic.

Despite the recent volatility, the IBEX 35 remains a popular investment for investors who are looking for exposure to the Spanish stock market.

Investing in the IBEX 35

There are a number of ways to invest in the IBEX 35. Investors can buy shares of individual companies that are included in the index, or they can invest in exchange-traded funds (ETFs) that track the performance of the index.

ETFs are a popular way to invest in the IBEX 35 because they offer a diversified portfolio of stocks and are easy to trade.