ASX is today celebrating the 25^th anniversary of S&P/ASX indices, which have become the cornerstone of Australia’s financial markets since their introduction in 2000. Over the past quarter-century, the indices have played a critical role for investors in benchmarking performance, supporting investment decisions, and enhancing market transparency for Australian and global investors. 

Developed in partnership with S&P Dow Jones Indices, the S&P/ASX index series has grown to become the definitive measure of the Australian equity market. The S&P/ASX200 in particular is widely recognised as the primary benchmark for institutional and retail investors, tracking the performance of Australia’s largest and most liquid companies, and underpins billions of dollars in investment products including exchange traded funds (ETFs).

Helen Lofthouse, ASX Managing Director and Chief Executive Officer, said: “For 25 years, the indices have provided investors with a trusted and transparent measure of Australian market performance. They have supported the growth of Australia’s investment ecosystem, driving product innovation, enabling passive and active investment strategies, and fostering international engagement with our market.”

Over time the indices have evolved to reflect changing dynamics of the Australian economy and global investment trends. The suite of indices now includes benchmarks for sector-specific exposures such as technology, resources, and financial, allowing investors to tailor their strategies in line with market themes.

Upon launch, the combined value of companies in the S&P/ASX 200 was just over $600 billion^[1] and ASX-listed companies needed a market capitalisation of $180 million to be included. Since then, the S&P/ASX 200’s combined value has grown by more than 341% to over $2.6 trillion^[2]. ASX-listed companies now require an average six-month, float-adjusted market capitalisation of above $700 million to be eligible for inclusion in the index. 

Further, the number of index tracking ETFs has grown considerably. Over the past 10 years, index tracking ETFs have grown from about 100 funds managing approximately $16 billion in FUM to over 250 funds with $200 billion in FUM.

“This surge underscores the vital role that indices play in providing investors with transparent, diversified and cost-effective market exposure,” Ms Lofthouse said. “As investor demand for efficient portfolio solutions continues to rise, the evolution of ETFs and index-based investing remains a key driver of market accessibility and innovation.”

Dan Draper, Chief Executive Officer at S&P Dow Jones Indices, said: “As we celebrate the 25^th anniversary of the S&P/ASX Index Series, we reflect on its profound impact in shaping the investment landscape in Australia and beyond. The Index Series has been foundational to the growth of index-based investing in Australia, serving as a reliable benchmark that enables investors to track market performance, generate insights and make informed decisions.”  

Further information about S&P/ASX indices can be found on ASX’s and S&P Global’s websites.