The Swiss Leader Index (SLI) is an index comprising large and mid-cap companies primarily listed on
SIX Swiss Exchange
SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zurich, is Switzerland's principal stock exchange (the other being Berne eXchange). SIX Swiss Exchange also trades other security (finance), securities such as Swiss government bonds and d ...
. It is made up of 30 of the largest and most
liquid
A liquid is a nearly incompressible fluid that conforms to the shape of its container but retains a (nearly) constant volume independent of pressure. As such, it is one of the four fundamental states of matter (the others being solid, gas, a ...
Swiss Performance Index (SPI) large- and mid-cap
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
s.
As a price index, the SLI is not adjusted for
dividends
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-in ...
, but there exists a total-return version as well.
The SPI was introduced on July 2, 2007 and computed back to December 30, 1999, with a baseline value of 1,000 points on this starting date.
The capping model of the SLI makes it suitable as a benchmark for a broader range of products and markets than other indices offered by SIX Swiss Exchange, because it is compatible with regulatory requirements in the European Union as well as in the United States.
With its 9/4.5 caps, the SLI is more diversified, and its risk/return profile is more tilted towards smaller capitalizations, than other indices such as the SMI and SPI.
In 2020, the SLI, along with other SIX indices, was endorsed under the
EU Benchmarks Regulation and is registered in ESMA, which means that it can be used as an underlying for financial products sold in the EU.
Rules
Universe
The SLI comprises the 20 securities of the
SMI, as well as the largest 10 securities in the
SMI MID
The SMI MID (SMIM) is a stock index which lists Switzerland's mid-cap companies. The index is calculated by SIX Swiss Exchange.
It includes the 30 Prime Standard shares from sectors that rank immediately below the companies included in the Swis ...
.
Capped weightings
The largest four components of the SLI are capped at 9%. All other components, if necessary, are capped at 4.5%.
The caps are enforced with a multiplication factor that is updated every three months.
This was made to conform the SLI to the EU's
UCITS
The Undertakings for Collective Investment in Transferable Securities Directive (UCITS2009/65/ECis a consolidated EU directive that allows collective investment schemes to operate freely throughout the EU on the basis of a single authorisation fro ...
5/10/40 rule, which says that:
* The value of any single position cannot be more than 10% of the fund's value, and
* all positions that are larger than 5% of the fund's value cannot, together, make up more than 40% of the fund's value.
Current constituents
As of September 20, 2021, the following 30 stocks make up the SLI index. Components marked as
1 have a 9% weight as of September 18, 2020.
Sizes are based on the SPI classification by market capitalization: L for SPI Large, M for SPI Mid.
Notes and references
{{Swiss Leader Index companies
Swiss stock market indices