A new paper^[1] from Hamish Seegopaul, Global Head of Index Product Innovation at STOXX, takes on the objective of deciphering those preferences, by analyzing ETF flows but also looking through to the underlying holdings. The exercise presents a view of investors’ granular preferences, ex-post, and can be a valuable source of information that comes closer to investors’ revealed preferences, as opposed to broad ETF categories, which may be closer to their stated preferences.

The study looks at US ETFs and employs a taxonomy of preferences across style, industry and regional factors. The author creates a ‘Flow Portfolio,’ which is comprised of securities that were theoretically bought or sold each year to facilitate ETF’s net flows. Key findings in the study of Flow Portfolios are:

• There has been a high degree of year-on-year variability in style, industry and regional exposures
• There is evidence of ongoing appetite for broad-based exposure
• Over longer time horizons, there is little clear preference for specific exposures
• No matter the time frame examined, investors favored ETFs with strong in-year performances

Performance rules all preferences

Some trends are persistent over time, Hamish writes. For example, across years the Flow Portfolios show a preference for ‘more’ – more holdings and more performance – compared to the entire ETF universe. The preference for higher returns is probably of little surprise, and the paper does not imply that investors were able to capture it.

That preference also coincides with a relatively constant preference for Momentum. The factor remains somewhat of an outlier, as all other styles show a degree of variability year after year (although that variability mostly disappears when measured over time). Sectors and regions exposures preferences, too, change over time but are fairly neutral over the long run.

“In the short run, preferences can be highly variable,” Hamish writes. “In the long run, there is one preference to rule them all – and that is performance.”

One other notable shift in aggregate exposure over time is the move away from Americas-based holdings and towards EMEA and Asia/Pacific ones, the report says, a sign of diversification preference.

“These findings support a rich product landscape, however, pose challenges for the industry,” the author adds. “Some challenges – such as the ‘returns gap’ – have been sticky. Others, such as understanding preferences prior to investment decisions, will lead to further innovation.”

We invite you to download the paper and explore its methodology and results.

^[1] STOXX, “Understanding Investor Preferences through Passive Investment Flows,” February 2024. 

“Investors are clearly allocating significantly more to alternative asset classes to diversify their portfolios. That’s why we are moving into an investment segment that’s increasingly gaining a foothold in portfolios. With Bitcoin Suisse, we do this with an established partner and with an index methodology designed to meet the robustness needs of today’s investors.”

Axel Lomholt, General Manager at STOXX

The STOXX Digital Asset Blue Chip Index tracks a diversified and high-quality basket of assets, utilizing crypto-native metrics to select those which serve as a reflection of the crypto universe today. The list of eligible tokens is derived from all assets classified under the Bitcoin Suisse Global Crypto Taxonomy (GCT). Selection is based on a multi-step procedure which seeks to identify the strongest and most representative assets in each eligible sector. A market capitalization weighting scheme with a cap of 30 percent limits exposure to typically dominant tokens such as Bitcoin and Ethereum.

“With its maximum weighting limit of 30 percent for any individual crypto underlying, the new ETP is as unique vehicle to enter into the crypto world with just one position in your portfolio.”

Marco Infuso, Chief Sales Officer of Valour

“With the launch of this unique blue chip crypto index in collaboration with STOXX, we are taking the next step in the development of our digital assets offering. With its rule-based asset selection, the STOXX Digital Asset Blue Chip Index is Europe’s first investment alternative to pure top market cap crypto asset strategies. Bitcoin Suisse is proud to partner with STOXX to drive innovation further in the crypto- and traditional space.”

Andrej Majcen, Chief Executive Officer at Bitcoin Suisse

About STOXX 
STOXX^® and DAX^® indices comprise a global and comprehensive family of more than 17,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50^®, STOXX^® Europe 600 and DAX^®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation. 

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders. 

Legal disclaimer: 
STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. None of their products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or trading strategies. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers on the merits of that company and may not be relied on as such. Financial instruments based on the STOXX^® indices, DAX^® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers. 

The STOXX Semiconductor 30 Index is comprised of US-listed securities issued by companies classified within the Semiconductors and Production Technology Equipment ICB Subsectors. The stocks are ranked by free-float market capitalization and the top 30 make it into the index. Constituents are weighted by size, with a single-stock cap at the time of reweighting of 8% and a 45% combined weight limit for companies with an individual weight of over 4.5%. 

Chipmakers have been at the center of the latest equity market rally, driven by strong demand for semiconductors, in particular from developers of artificial intelligence technologies. Nvidia, the largest component in the STOXX Semiconductor 30 index, last month reported that fourth-quarter revenue rose 265% from a year earlier, beating analysts’ forecasts. CEO Jensen Huang said that “the conditions are excellent for continued growth.”^[1] The company’s shares have risen nearly 500% since the start of 2023.^[2]

According to McKinsey, global semiconductor sales may grow to USD 1 trillion by 2030 from USD 600 billion in 2021.^[3] About 70% of growth is predicted to be driven by three industries: automotive (particularly electric vehicles), data storage (AI and cloud computing) and wireless (smartphones, 5G).

“The STOXX Semiconductor 30 Index represents the leading companies within a rapidly flourishing industry, all meticulously selected through a rules-based and transparent methodology,” said Axel Lomholt, General Manager at STOXX. “Our collaboration with Eurex signifies a terrific opportunity to further enrich the derivatives market, particularly in connection with themes and sectors, leveraging our innovative index-based solutions.”

Figure 1: Index performance

_{Source: STOXX. Data as of January 31, 2024.}

Figure 2: Top ten holdings

_{Source: STOXX. Data as of March 11, 2024.} 

^[1] CNBC, “Nvidia posts revenue up 265% on booming AI business,” February 21, 2024.

^[2] Data through March 4, 2024.

^[3] McKinsey, “The semiconductor decade: A trillion-dollar industry,” April 1, 2022.

MDAX:

SDAX:

TecDAX:

Rational AG will leave the MDAX and is no longer eligible for any selection index because it does not meet one of the basic criteria, according to section 5.4.2 in the rulebook. As defined there, the company does not comply with one recommendation of the German Corporate Governance Codex (C.10) which pertains to the chair of the audit committee.

All additions and deletions will become effective on 18 March 2024.

Furthermore, some changes to the methodology of DAX equity indices will become effective on 18 March, which were announced in March 2023, these relate to changes in the treatment of corporate actions and the index formula; and to an adjustment of the capping in the DAX index family from 10 to 15 per cent, announced in November 2023.

The next scheduled index review of the DAX index family is 5 June 2024.

DAX®, MDAX®, SDAX® and TecDAX® are registered trademarks of ISS STOXX Index GmbH.

About STOXX
STOXX® and DAX® indices comprise a global and comprehensive family of more than 17,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50®, STOXX® Europe 600 and DAX®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation. 

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders. 

Legal disclaimer: 
STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. None of their products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or trading strategies. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers on the merits of that company and may not be relied on as such. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers. 

Figure 1: STOXX Thematics universe, selected indices

_{Source: STOXX. For illustrative purposes only, not an exhaustive list.}

Thematic investors find themselves at a singular point. Fast societal and business change in our world is constantly generating new themes. At the same time, evolving technologies and ever-smarter datasets are enabling new methodologies to best harness the impact of that change. Index levels recovered last year from the dip in 2022, when a sell-off in the most growth-oriented parts of the market served as a reminder that thematic investing carries with it a risk, and that long-term performance is not immune to cyclical headwinds. 

Despite market and economic volatility, many investors have allocated money into thematic strategies either for the potential for outsized returns, portfolio diversification (more on this below) or even as an inflation hedge. 

Long-term performance

A key characteristic of thematic investing is that it aims to capture the upside of multi-year structural change, as opposed to the shorter economic cycles and annual corporate calendars that often dictate returns in large pockets of the market. This coincides with the findings of a survey from BNP Asset Management last June. In it, 34% of polled investors said thematic investing has a positive impact on returns in periods up to three years. In contrast, 84% said thematic investing has a positive impact on performance over periods of up to five years.

This is backed up by the performance of our indices in the past decade. Almost 80% of STOXX’s thematic indices beat the STOXX^® World AC index over the past ten years, while about two-thirds did so over the past five years (Figure 2a). 

In more recent years, on the other hand, thematic funds faced a challenging environment as central banks aggressively raised interest rates to fight inflation. As such, the ratio of outperforming thematic indices over the past two years fell strongly, to under 30%. As thematic indices bounced back in 2023, the ratio of outperforming thematic indices in the past 12 months jumped back to 65%. Gains came around as investors predicted the world was headed for looser monetary policy. 

Figure 2: Share of outperforming STOXX Thematic indices by period and year

a. By rolling period

_{Source: STOXX, based on data available for the 34 STOXX thematic indices featured in Figure 1. Total returns in USD. Performance is relative to the STOXX World AC. Based on available data for the periods considered. Data through December 2023.}

b. By calendar year

_{Source: STOXX. Same as above.}

Figure 3 shows the average total return in a representative set of STOXX Thematic indices in red and those of the benchmark STOXX World AC in blue. Thematic indices amply outperformed when considering the last ten- and five-year periods, but that advantage disappears when taking the past two and three years. 

Figure 3: Total returns

_{Source: STOXX, total returns in USD for the 34 indices featured in Figure 1. Data through December 2023.} 

While offering higher potential returns, thematic investing usually carries higher volatility than benchmarks. This is to be expected from portfolios that are narrower and more targeted.

Diversification

One of the appeals of thematic indices is that they can help reduce a portfolio’s correlation to benchmarks and to the economic cycle^[1], enabling investors to hedge their risk.

For example, the STOXX^® Global Broad Infrastructure index has a beta of 0.76 to the STOXX World AC. Assets with a beta of 1 move in tandem. At the high end of the spectrum, the STOXX^® Global Copper Miners index has a beta of 1.76, and the STOXX^® Global Smart Cities scores a beta of 1.73.

The year of the ‘Magnificent Seven’

Looking at 2023’s performance within the three clusters in the STOXX Thematics suite, Future Technology delivered an average return of 43% in the year, followed by Socio-Demographics (+29%) and Environment (+6.8%). 

The STOXX^® World AC NexGen Software Development (+75%) and the STOXX^® Global Artificial Intelligence (+71%) led gains, confirming the standing of artificial intelligence as last year’s ‘hot topic.’ Both indices are dominated by members of the ‘Magnificent Seven’ group of stocks that drove gains last year: Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia and Tesla. 

Figure 4 shows the one-year performance through December of the STOXX Thematic indices (vertical axis) vs. the weight of the Magnificent Seven in each index (horizontal axis) as of the end of the period. 

A linear trend is generally observed, where the larger the presence of Magnificent Seven stocks, the better the index performance. Nevertheless, there are some notable outliers such as the STOXX^® Global Industry 4.0 (43%), which did not feature any of the stocks.

Figure 4: Sway of ‘Magnificent Seven’ stocks

_{Source: STOXX.}

Expanded ecosystem

Thematic investing has established a foothold in professional investment portfolios, with new themes and ways to target them — such as listed futures — coming to the market. Our analysis shows that the strategies can outperform over multi-year periods that encompass different macroeconomic backgrounds. Additionally, because of particular characteristics that differ from those of benchmark indices, thematic strategies can play a diversification role in portfolios. 

With technological and social change happening at ever-faster speed, and environmental considerations gaining precedence, thematic indices will continue to attract investors’ attention. 

^[1] See Wellington Management, “Thematic investing: Long-term thinking for a short-term world,” November 2022.

ZUG (March 1, 2024) – STOXX Ltd. has announced the new composition of the STOXX Europe 600 Index. Effective as of the opening of European markets on March 18, 2024, the following stocks will be added to and deleted from the index and its respective size and sector indices:

The STOXX benchmarks also include the STOXX North America 600 Index, STOXX Asia/Pacific 600 Index, STOXX Global 1800 Index, STOXX Europe Total Market Index, STOXX EU Enlarged Total Market, STOXX Eastern Europe Total Market and STOXX Eastern Europe 300 Index. They are also part of this regular quarterly review.

All additions and deletions can be found here: https://www.stoxx.com/index-updates.

About STOXX
STOXX^® and DAX^® indices comprise a global and comprehensive family of more than 17,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50^®, STOXX^® Europe 600 and DAX^®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation.

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.

Legal disclaimer:
STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. None of their products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or trading strategies. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers on the merits of that company and may not be relied on as such. Financial instruments based on the STOXX^® indices, DAX^® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers.

Investors seeking exposure to technology have driven the industry’s shares higher and have found good reasons to do so: profits at ASML Holding NV and SAP SE, now respectively the largest and third-biggest constituents in the European index, are crashing analysts’ estimates. The two companies alone are responsible for around a quarter of the index’s gains since the start of 2023, and for two-thirds of its returns in 2024. 

The new index titans look different from the more defensive and domestic-focused companies that held the biggest sway in the Eurozone blue-chip benchmark when it was launched 26 years ago today. In a recent Bloomberg News article, Michael Msika wrote that the new-found weight of technology stocks in the EURO STOXX 50 is likely to influence the index’s performance. 

“Europe may lack a ‘Magnificent Seven’^[1] tech cohort of its own, but a pared-down version of that phenomenon has emerged,” writes Msika. “Tech is gaining importance among investors, and the sector has yet to breach its record high from 2000, leaving plenty of room for further gains.”

Performance

The Eurozone’s blue-chip benchmark gained 19.2% in 2023 and 23.2% when including dividends. The index has got off to a good start this year, gaining 2.8% and 3%, respectively, in January. That said, the index remains 15% short of its record on a price level, reached in 2000. 

Figure 1: EURO STOXX 50 performance

_{Source: STOXX. Price index in EUR. Data through January 31, 2024.} 

Chip machines

ASML on January 24 reported that profits jumped 8.2% in the last three months of 2023 from the previous quarter, beating analysts’ predictions.^[2] Shares in the Dutch company whose lithography machines are used to make chips rose 7.9% on the results, and are now up 60% since the start of 2023.

The same day, SAP shares jumped 8.3% to a record after the German maker of enterprise application software released earnings that beat expectations and said it plans to restructure 8,000 jobs as it shift resources to Artificial Intelligence technology.^[3] SAP has climbed almost 70% since the start of 2023. 

SAP and ASML have accounted for 7 percentage points, or just over a quarter, of the EURO STOXX 50’s 27% return since the start of 2023 (Figure 2). This year, their contribution has increased, accounting for two-thirds of the portfolio’s 3% advance through January (Figure 3).

Figure 2: Stock contribution, January 2023 – January 2024

_{Source: Axioma. Period covers from January 1, 2023, to January 31, 2024.} 

Figure 3: Stock contribution, January 2024

_{Source: Axioma. Period covers January 2024.} 

Shifting industry composition

The increasing sway of the Technology sector in the Eurozone market started years ago, and is part of a shifting sector composition in the index and broader economy. Figure 4 shows the evolution, in roughly five-year intervals, of a selection of ICB Supersectors as represented in the EURO STOXX 50 since 1998. The trends are a proxy for the fortunes of each industry, although there have also been company reclassifications and changes to industry definitions over the period. 

Technology, in gray, is one of the biggest advancers over the period. It now accounts for 17.4% of the benchmark’s weight, the largest Supersector in the index, up from just over 1% in 2008. The Supersector accounted for nearly 8% upon inception of the index, before Philips, Nokia, Siemens and Alcatel were re-classified from Technology to other Supersectors.

Over the entire 1998-2024 period, it is Industrial Goods & Services that has registered the biggest weight increase: it’s gone from less than 1% in 1998 to 13.9% of the index today, thanks to stocks including Siemens and Schneider Electric. This sector and Technology have given the EURO STOXX 50 a more cyclical tilt. 

By contrast, Oil & Gas, Insurance and the defensive Supersectors of Utilities and  Telecommunications have ceded territory in the past two-and-a-half decades.  

Banks accounted for over a fifth of the index in 2008, before the financial crisis triggered a sell-off in the sector. 

When the EURO STOXX 50 was launched in 1998, the continent’s large phone companies accounted for a combined 16.5% of the benchmark. Energy companies were the second-largest Supersector, at 15.1%, followed by Insurers with a total weight of 13%. 

Figure 4: EURO STOXX 50’s ICB composition, selected Supersectors

_{Source: STOXX. Chart shows weights as of February 1998, January 2003, January 2008, January 2014, January 2019 and January 2024. Only selected Supersectors are shown.} 

While the Technology Supersector has grown in Europe, it remains smaller than in the US. In the STOXX^® USA 500, it accounts for 32.7% of the index. 

Valuations remain competitive

As Bloomberg’s Msika notes, profits at the EURO STOXX 50’s largest companies have risen alongside share prices, keeping the index’s relative valuation around its historical average (Figure 5).

Figure 5: EURO STOXX 50 valuation

_{Source: Bloomberg.}

At 12.4 times its companies’ projected earnings, the Eurozone benchmark is about a third cheaper than the STOXX^® USA 500 index, which trades at 18.2 times earnings.

Technology dominance

The role of a benchmark is to be representative of its underlying market and economic reality. In that sense, the EURO STOXX 50 shows that the Eurozone has also been impacted by the technology boom this century, and investors’ rush to participate in the economic upside of the pioneering companies innovating in the industry. 

^[1] As Diana R. Baechle and Leon Serfaty of Axioma have written here and here, the “Magnificent Seven” stocks (Amazon, Apple, Alphabet, Meta, Microsoft, Nvidia and Tesla) have held an outstanding influence on the performance of US equity indices.
^[2] Reuters, “ASML shares close at record high after earnings beat, orders pop,” January 24, 2024.
^[3] Euronews, “SAP shares hit all-time high after announcing job restructuring plans,” January 24, 2024.