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 Zürich, is Switzerland's principal stock exchange (the other being BX Swiss). SIX Swiss Exchange also trades other security (finance), securities such as Swiss government bonds and deriv ...
. It is made up of 30 of the largest and most
liquid
Liquid is a state of matter with a definite volume but no fixed shape. Liquids adapt to the shape of their container and are nearly incompressible, maintaining their volume even under pressure. The density of a liquid is usually close to th ...
Swiss Performance Index (SPI) large- and mid-cap
stock
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporatio ...
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, after which the stock exchange decreases the price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex ...
, but there exists a total-return version as well.
The SLI 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 Swi ...
.
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 (Directive 2009/65/EC, "UCITS") is a directive of the European Union (EU) that allows collective investment schemes to operate freely throughout the EU on the basis o ...
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