Deutsche Bank(DB) and Credit Suisse(CS) are getting kicked out of the prestigious Stoxx Europe 50 Index. The changes will come into effect at the market open on August 8, 2016 according to the index provider STOXX. These two components will be replaced by French construction ginat Vinci (VCISY) and chipmaker ASML Holding(ASML) of The Netherlands.
The five-year price return (in Euros) of the Stoxx Europe 60 Index is shown below:
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The change is the index components has a big impact on all the products such as ETFs that track this index.
DB and CS have lost nearly half of their value this year based on stock prices. For Deutsche Bank this is the first time since 1998 that it is not part of the bluechip index.
The stocks of most of the major European banks have declined heavily so far this year. So from an investment perspective, investors can avoid British banks and others including DB,.
Disclosure: No Positions