The Ibex 35 is one of the most important stock market indexes in Europe and a benchmark in the financial world. According to data from the Madrid Stock Exchange, the Ibex 35 has experienced an average annual growth of 7% since its creation in 1992.
What is the Ibex 35 and what is it for?
The Ibex 35 is the main stock market index of the Madrid Stock Exchange, comprising the 35 most liquid companies listed on the Electronic Stock Exchange Interconnection System (SIBE) on the four Spanish stock exchanges.
This index serves as an indicator of the performance of the Spanish stock market and is used by investors and portfolio managers to compare the performance of their investments with that of the market in general.
Which companies make up the Ibex 35?
The Ibex 35 is composed of the 35 most liquid companies listed on the Madrid Stock Exchange. Some of the companies that are part of the Ibex 35 are:
- Banco Santander
- BBVA
- Telefónica
- Inditex
- Iberdrola
It is important to mention that the composition of the Ibex 35 can change every six months, depending on the liquidity of the companies.
Who calculates the Ibex 35?
The Ibex 35 is calculated and published by the Technical Advisory Committee of the Sociedad de Bolsas, an entity that is part of Bolsas y Mercados Españoles (BME). This committee is responsible for reviewing the composition of the index every six months and making the necessary adjustments to ensure that the index accurately reflects the performance of the Spanish stock market.
Why is the Ibex 35 important?
The Ibex 35 is a key indicator of Spanish stock market performance and is used by investors around the world to assess the health of the Spanish economy.
Many Mexican companies have business relationships with Spanish companies, so the performance of the Ibex 35 may have an impact on the Mexican economy.
How can I invest in the Ibex 35 from Mexico?
Investing in the Ibex 35 from Mexico is possible and can be done by following these steps:
- RegisterVisit the official website of the broker you wish to use.
- Fill out the formProvide your phone number or email and create a password.
- LoginUse your new credentials to access your account.
- Select the Ibex 35 indexYou can search for the index from the broker’s products or markets or directly type the name “Ibex 35” in the search box.
- Analyzing the priceBefore investing, it is important to analyze the price of the index and market conditions.
- Configure the orderDecide how much money you want to invest and whether you want to buy (if you think the index will go up) or sell (if you think the index will go down).
What are the risks of investing in stock indexes?
Investing in stock indexes can be an effective strategy for maximizing returns and mitigating risks, but it also carries certain risks that investors should be aware of:
- Market riskMarket risk: Stock market indexes are subject to market volatility, which may result in significant fluctuations in the value of these instruments.
- Limited performanceSince the performance of an index is determined by the performance of its underlying securities, it will not outperform the market as a whole.
- Liquidity riskSome indices may be difficult to sell or liquidate quickly, especially in times of market stress.
- ComplexityStock indexes are complex products that require a thorough understanding of how they work, the markets in which they operate and the risks involved..
