The group of Australian companies below are the 50 largest companies listed on the Australian Stock Exchange. Commonly known as the ASX 50 Index, it is a large capitalization index similar to the ASX20 and ASX200 Shares Index. Companies include in the list below are also in the ASX 200.
A capitalization index means the the weight of each company in the list below that makeup the index is proportional to the total value of all 50 companies. The larger the company, the larger its weight in the index.
The list is broken down by market capitalization and sector. The price of the shares change day to day, the market cap figure is rounded to the nearest hundred million and should be used as an indicative ranking order only. The index is rebalanced quarterly.
The minimum size for companies to be included in the ASX 50 is estimated to be $5.0 billion with market capitalization just one factor that ultimately determine if a company is included in the index. Other factors include daily trading volume as proxy for market liquidity and total shares outstanding is adjusted for the free float factor. This is portion of the shares outstanding that is not locked up, tightly held by private investors and are freely traded.
Long Term Index Investing
Index funds track the returns of market indices. Long term passive investors can use index funds to piggy back the market performance. No index fund specifically track the top 50 ASX companies but there is an index fund which track the performance of ASX 200. ASX 200 shares includes not only the top 50 Australian companies but increases the list to 200 of the largest listed companies.
The return of the ASX 200 matches to a large extent to the 50 index. This is because while ASX 200 include 200 companies, both index share the 50 largest position in the index.
Lets face it, it is hard for individual investors to even keep track of a top 10 shares list let alone a full diversified portfolio. Index funds have the advantage of providing a low cost and convenient option for long term investors. The goal of these funds is to capture the market returns and perfect for those that want a set and forget option for long term investing without the hassle of high fees or try to time the market.
Periodically, the index is rebalanced since companies value increase and decrease overtime. Standard and Poors’ set a quarterly rebalancing frequency in which when companies whos value increased to the point it is one of the 50 largest listed companies, then it is included. Vice versa for company that has lost value over the quarter below the minimum threshold.
As the index is made up of the top 50 stocks ASX listed. The exact market capitalization is based on the size of the 50th largest company.
In the most recent index rebalance, Crown was removed in the March 2016 rebalancing and replaced with Qantas.
ASX 50 Index Components
|Name||ASX Ticker||Market Cap||Sector|
|Commonwealth Bank of Australia||CBA||$133,500 Mil||Financial|
|Westpac Banking Corp||WBC||$109,000 Mil||Financial|
|BHP Billiton Limited||BHP||$91,200 Mil||Resources|
|Australia and New Zealand Banking Group||ANZ||$76,000 Mil||Financial|
|National Australia Bank Ltd.||NAB||$74,800 Mil||Financial|
|Rio Tinto Limited||RIO||$71,100 Mil||Resources|
|Telstra Corporation Ltd||TLS||$63,800 Mil||Telecommunication|
|Wesfarmers Ltd||WES||$47,000 Mil||Conglomorate|
|CSL Limited||CSL||$46,300 Mil||Industrial|
|Woolworths Limited||WOW||$28,200 Mil||Consumer Staple|
|Scentre Group Ltd||SCG||$23,200 Mil||Real Estate|
|Macquarie Group Ltd||MQG||$23,200 Mil||Financial|
|Transurban Group||TCL||$22,500 Mil||Infrastructure|
|Woodside Petroleum Limited||WPL||$22,300 Mil||Energy|
|Westfield Corp Ltd||WFD||$20,600 Mil||Real Estate|
|Brambles Limited||BXB||$18,900 Mil||Industrial|
|AMP Limited||AMP||$17,200 Mil||Insurance|
|Amcor Limited||AMC||$16,500 Mil||Industrial|
|Suncorp Group Ltd||SUN||$15,400 Mil||Financial|
|QBE Insurance Group Ltd||QBE||$14,700 Mil||Insurance|
|Sydney Airport Holdings Ltd||SYD||$14,500 Mil||Infrastructure|
|Newcrest Mining Limited||NCM||$13,400 Mil||Resources|
|Insurance Australia Group Ltd||IAG||$13,300 Mil||Insurance|
|Vicinity Centres Re Ltd||VCX||$12,400 Mil||Real Estate|
|AGL Energy Ltd||AGL||$12,300 Mil||Energy|
|Ramsay Health Care Limited||RHC||$12,300 Mil||Healthcare|
|Goodman Group||GMG||$11,900 Mil||Real Estate|
|Oil Search Limited||OSH||$10,600 Mil||Energy|
|Stockland Corporation Ltd||SGP||$10,100 Mil||Real Estate|
|APA Group||APA||$9,400 Mil||Infrastructure|
|Origin Energy Ltd||ORG||$9,400 Mil||Energy|
|GPT Group||GPT||$8,800 Mil||Real Estate|
|Asciano Ltd||AIO||$8,700 Mil||Transport|
|Caltex Australia Limited||CTX||$8,500 Mil||Energy|
|South32 Ltd||S32||$8,400 Mil||Resources|
|Qantas Airways Limited||QAN||$8,300 Mil||Consumer Discretion|
|Aurizon Holdings Ltd||AZJ||$8,300 Mil||Transport|
|Lend Lease Group||LLC||$8,300 Mil||Real Estate|
|ASX Ltd||ASX||$8,000 Mil||Financial|
|James Hardie Industries plc||JHX||$8,000 Mil||Industrial|
|DEXUS Property Group||DXS||$7,700 Mil||Real Estate|
|Medibank Private Ltd||MPL||$7,500 Mil||Healthcare|
|Sonic Healthcare Limited||SHL||$7,400 Mil||Healthcare|
|Santos Ltd||STO||$7,200 Mil||Energy|
|Mirvac Group||MGR||$7,000 Mil||Real Estate|
|Coca-Cola Amatil Ltd||CCL||$6,700 Mil||Consumer Discretion|
|Orica Ltd||ORI||$5,900 Mil||Industrial|
|Computershare Limited||CPU||$5,500 Mil||Industrial|
|Incitec Pivot Ltd||IPL||$5,300 Mil||Industrial|
|SEEK Limited||SEK||$5,300 Mil||Technology|
ASX 50 Sector Weights
We have classified the companies on the ASX 50 list by sector. Industries in the top 50 ASX index is dominated by resources, financials and real estate companies.
The sector composure is similar to sector breakdown of the broader ASX 200 index. Financials and resources make up around 50% of the total value in the index. This can be considered highly concentrated on an individual stock basis as the financials are dominated by the big 4 banks.
Real estate is one of the largest sub sector within the financial component of the index. In August 2016, the REIT sector will be broken out of the broader financial segment.
The Australia Stock Exchange is known to be the preferred listing option for the mining sector. Even with hundreds of mining companies, the market capitalization of BHP and RIO dominates the resources sector.