{"id":91111,"date":"2023-08-04T02:16:00","date_gmt":"2023-08-04T02:16:00","guid":{"rendered":"https:\/\/arielle.com.au\/?p=91111"},"modified":"2026-01-22T04:52:02","modified_gmt":"2026-01-22T04:52:02","slug":"what-is-asx200","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/what-is-asx200\/","title":{"rendered":"What Is The ASX 200 And How Does It Work?"},"content":{"rendered":"Reading Time: <\/span> 8<\/span> minutes<\/span><\/span>\n

As you deepen your interest in investing, you\u2019ll find that indices play an important role in understanding the Australian market’s buoyancy (or bearish-ness). But maybe you\u2019ve wondered, what exactly is the ASX 200<\/em>?<\/p>\n\n\n\n

Over 2,000 individual companies are listed on the Australian Securities Exchange (ASX).<\/p>\n\n\n\n

The ASX 200 is an Australian share market index that provides a performance snapshot of Australia’s key companies. <\/span><\/div><\/div>\n\n\n\n

It helps investors identify and observe the leading corporate players that shape our financial landscape.<\/p>\n\n\n\n

(Related: eToro Review: Pros, Cons, Fees & Verdict<\/a>)<\/strong><\/p>\n\n\n\n

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What Is The S&P\/ASX 200 Index?<\/strong><\/h2>\n\n\n\n

The S&P\/ASX 200 is an index that tracks the top 200 companies listed on the Australian Stock Exchange by market capitalisation and liquidity. <\/p>\n\n\n\n

These companies account for almost 80% of the market\u2019s value.<\/p>\n\n\n\n

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Important!<\/h3><\/div>

Launched in 2000, the S&P\/ASX 200 index is now the most trusted benchmark for the Australian equity market\u2019s performance.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n

It is used by retail and institutional investors, analysts and the media to gauge what\u2019s happening across the market more broadly.<\/p>\n\n\n\n

The index methodology was created, and continues to be maintained, by S&P Dow Jones.<\/span><\/div><\/div>\n\n\n\n

(Related: How To Buy Microsoft Shares In Australia<\/a>).<\/strong><\/p>\n\n\n\n

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Why Is The S&P\/ASX 200 Index So Popular?<\/strong><\/h2>\n\n\n\n

Indices like the ASX 200 can provide the basis for investment products such as ETFs, or a point of reference\/comparison for actively managed products designed to replicate or exceed market gains.<\/p>\n\n\n\n

Identifiable by the symbol XJO, the ASX 200 index:<\/p>\n\n\n\n