11.02.2021 - Studies

S&P 500 vs. Stoxx 600 - Why the leading US equity index has outperformed its European counterpart

by Kai Lehmann


The U.S. S&P 500 is rushing from record to record, leaving its European counterpart, the Stoxx 600, far behind. The study analyzes why the performance gaps are so wide.

While the market values of the companies included in the S&P 500 index have tripled since 2010, its European counterpart, the Stoxx 600, has been stagnating for a decade. One important factor explaining the significant differences in performance is the different sector mix of the indices. For example, more than a quarter of the market capitalisation of the S&P 500 is now accounted for by highly profitable technology companies. While these play only a subordinate role in the Stoxx 600, the performance of the index suffered from the highly weighted financials.

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