ESTX50 definition

ESTX50

The ESTX50 is a common abbreviation for the Euro Stoxx 50, which lists the top 50 most highly-capitalised stocks on the EURO STOXX – another European index. It’s weighted based on each company’s free float market capitalisation.

While the main EURO STOXX index contains large, mid and small-cap stocks across the eurozone, the ESTX50 is only blue-chip firms. It represents about 60% of the EURO STOXX in terms of market capitalisation.

The ESTX50 is managed by STOXX Limited, a subsidiary of Deutsche Börse AG. For inclusion, the company has to be a eurozone member and trade with a certain amount of liquidity. Every year the index undergoes a review, with new upcoming players being added and laggards removed.

What are Euro Stoxx 50 futures?

Euro Stoxx 50 futures are contracts in which two parties exchange the value of the underlying index on a certain date for a predetermined price. They’re commonly used for hedging and diversifying equity portfolios across a variety of European sectors. In fact, futures on the Euro Stoxx 50 are among the most actively-traded euro-denominated equity derivatives.

Euro Stoxx 50 futures are also known for being highly liquid, which means the bid-ask spread tends to be extremely tight.

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