AUS 200 Explained: Key Facts About Australia's Top Stock Market Index

AUS 200

The AUS 200 – also known as the S&P/ASX 200, AXJO or AU200– is a critical benchmark for Australian markets (Australian shares). It's a float-adjusted market capitalization-weighted index, meaning the influence of each of the 200 largest companies listed on the Australian Securities Exchange (ASX) is reflected by their market capitalisation, with adjustments made for freely available shares. Together, these stocks account for over 80% of the entire Australian equity market’s market capitalisation.

The index was first calculated in March 2000, with a value of 3133, which at the time was equivalent to the value of the ‘All Ordinaries’ index, the oldest Australian equity index, comprised of the largest 500 listed securities on the ASX.

Being a cap-weighted index, the larger the market capitalisation of a stock within the AUS 200, the greater its contribution to the total value of the overall index. In order to be eligible for inclusion in the index, a stock must be listed on the ASX, as well as having a significant daily trading volume.

Market participants closely watch the AUS 200 as a barometer of the Australian economy's health. Its performance can be influenced by various factors, including decisions by central banks regarding rate cuts and overall economic conditions.

Recent performance, on a total return basis for the AUS 200, though not a firm predictor of future results, is shown below.

In terms of index weightings, the top 50 largest stocks are as follows.