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

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.

Download study as PDF (Reading time 20 min)

Legal notice

The information contained and opinions expressed in this document reflect the views of the author at the time of publication and are subject to change without prior notice. Forward-looking statements reflect the judgement and future expectations of the author. The opinions and expectations found in this document may differ from estimations found in other documents of Flossbach von Storch AG. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. This document does not constitute an offer to sell, purchase or subscribe to securities or other assets. The information and estimates contained herein do not constitute investment advice or any other form of recommendation. All information has been compiled with care. However, no guarantee is given as to the accuracy and completeness of information and no liability is accepted. Past performance is not a reliable indicator of future performance. All authorial rights and other rights, titles and claims (including copyrights, brands, patents, intellectual property rights and other rights) to, for and from all the information in this publication are subject, without restriction, to the applicable provisions and property rights of the registered owners. You do not acquire any rights to the contents. Copyright for contents created and published by Flossbach von Storch AG remains solely with Flossbach von Storch AG. Such content may not be reproduced or used in full or in part without the written approval of Flossbach von Storch AG.

Reprinting or making the content publicly available – in particular by including it in third-party websites – together with reproduction on data storage devices of any kind requires the prior written consent of Flossbach von Storch AG.

© 2024 Flossbach von Storch. All rights reserved.