AEX Index

The AEX is a stock index composed of Dutch companies that trade on Euronext Amsterdam, formerly known as the Amsterdam Stock Exchange. It is made up of the 25 most actively traded securities on the exchange.

The AEX index is a large-cap, free-float adjusted market capitalization weighted index. The index peaked at 703.18 on Sept. 5, 2000, when the dot-com mania was at its height. The index has dropped considerably in value over the last three years, like most global financial markets.

The composition of the AEX index is reviewed twice a year, in March and again in September, and is based on the closing prices at the end of January and June. Until 2008 the index was changed only once a year, that coming in April.

The 25 companies that have the highest share turnover over the previous year are admitted to the index. Companies with less than 25 percent of its shares considered free float on Euronext Amsterdam and a free-float market cap ranked lower than 25th are not eligible for consideration. If a company has more than one class of shares traded, only the most actively traded will be accepted into the AEX. If a company is removed from the index because of an acquisition, a delisting or some other reason, no replacement is made until the next scheduled review date. In that case the highest-ranking non-AEX companies are chosen to join the fund.

The 25 stocks currently in the AEX index include Aegon (life insurance), Ahold (food retailers), Air France-KLM (airlines), Akzo Nobel (specialty chemicals), ArcelorMittal (steel), ASML (semiconductors), BAM Group (heavy construction), Boskalis (heavy construction), Corio (real estate holdings and development), DSM (specialty chemicals), Fugro (oil equipment and services), Heineken (brewers), ING Group (life insurance), KPN (fixed line telecommunications), Philips (consumer electronics), Randstad Holding (business training and employment agencies), Reed Elsevier (publishing), Royal Dutch Shell (integrated gas and oil), SBM Offshore (oil equipment and services), TNT (delivery services), TomTom (telecommunications equipment), Unibail-Rodamco (real estate investment trusts), Unilever (food products), Wereldhave (specialty REITs), and Wolters Kluwer (publishing).

AEX Index Articles - by BetterTrades