The IBEX 35 Index: A Comprehensive Guide

Introduction

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, meaning that the stocks with the highest market capitalizations have the greatest influence on the index's value.

The IBEX 35 is one of the most important stock market indices in Europe, and it is often used as a barometer of the Spanish economy. The index was created in 1992, and it has since grown to become one of the most widely followed indices in the world.

History of the IBEX 35

The IBEX 35 was created on January 29, 1992, with a base value of 1,000 points. The index initially consisted of 40 stocks, but this was reduced to 35 in 2015.

The IBEX 35 has experienced a number of significant changes over the years. In 2007, the index reached its all-time high of 15,945.80 points. However, the index fell sharply during the 2008 financial crisis, and it reached a low of 6,615.50 points in March 2009.

The IBEX 35 has since recovered from the financial crisis, and it reached a new all-time high of 15,926.60 points in April 2022.

Composition of the IBEX 35

The IBEX 35 is composed of the 35 most liquid stocks traded on the Bolsa de Madrid. The stocks are selected based on their market capitalization, free float, and trading volume.

The largest companies in the IBEX 35 include Banco Santander, BBVA, Inditex, and Iberdrola.

Performance of the IBEX 35

The IBEX 35 has performed well over the long term. Since its inception in 1992, the index has returned an average of 9.6% per year.

The IBEX 35 has outperformed the MSCI World Index, which tracks the performance of stocks in developed countries around the world. The IBEX 35 has also outperformed the S&P 500 Index, which tracks the performance of stocks in the United States.

Factors Affecting the Performance of the IBEX 35

The performance of the IBEX 35 is affected by a number of factors, including the following:

• The performance of the Spanish economy
• The performance of the global economy
• The political and economic environment in Spain
• The performance of the other stock markets in Europe

Conclusion

The IBEX 35 is an important stock market index that tracks the performance of the Spanish economy. The index has performed well over the long term, and it is a good investment for those who are looking for exposure to the Spanish market.