A Review of Australia’s S&P/ASX 200 Index

The S&P/ASX 200 Index is the benchmark index of the Australian equity market. The index is composed of the largest 200 companies listed on the ASX by float-adjusted market capitalization.

The composition of the Index is shown in the chart below:

Click to enlarge

Source: S&P Indices

Nearly one-third of the index is concentrated in financials with the materials sector accounting for 18%. Together these two sectors amount to over 50% of the index. Though Australia is a resource-based economy the financials play a major role than the resources sector.

The tech sector in Australia is tiny compared to the US. Hence the IT sector has an allocation of just over 2% in the index.

The long-term performance of the index in local currency is shown below:

Click to enlarge

The top 10 constituents in the index amount to over 45% of the index weightage. These 10 companies are listed below with their ticker on the US market and current dividend yield:

1.Company: Westpac Banking Corp (WBK)
Current Dividend Yield: 7.08%

2.Company: Australia and New Zealand Banking Group Ltd (ANZBY)
Current Dividend Yield: 8.96%

3.Company: National Australia Bank Ltd (NABZY)
Current Dividend Yield: 7.36%

4.Company:Commonwealth Bank of Australia (CMWAY)
Current Dividend Yield: 9.79%
Sector: Banking

5.Company: BHP Billiton Ltd (BHP)
Current Dividend Yield: 4.74%
Sector:Metals & Mining

6.Company: CSL Ltd (CSLLY)
Current Dividend Yield: 1.18%

7.Company: Wesfarmers(WFAFY)
Current Dividend Yield: 4.60%
Sector:Consumer Staples

8.Company: Macquarie Group(MQBKY)
Current Dividend Yield: No dividends paid

9.Company: Telstra Corp Ltd(TLSYY)
Current Dividend Yield: 7.13%

10.Company: Woolworths Group Ltd
Sector:Consumer Staples
Woolworths does not trade on the US markets.

Note: Dividend yields noted above are as of Sept 28, 2018. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.


Disclosure: Long WBK and NABZY

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