The S&P/ASX 200 Index (INDEXASX: XJO) is Australia's benchmark share market index. Launched in April 2000, it comprises the largest 200 companies on the Australian Securities Exchange by float-adjusted market capitalisation, covering approximately 79% of Australia's equity market. Published by S&P Dow Jones, the index hit an all-time high of 9,198.6 points in February 2026 before settling closer to the 8,800 mark by July 2026. Over its lifetime of more than 25 years, the index has achieved a long-term annualized historical return of roughly 8.2% on a total return basis (including dividends), making it a reliable long-term benchmark for Australian equity performance.
As with all indices, the ASX 200 is measured in points and tracks the combined movements of all 200 shares within the index. Quarterly rebalances ensure the shares included meet the index's eligibility criteria, taking place in March, June, September, and December.
The index is largely dominated by the Financials and Materials sectors. Financials is the largest, making up around 28% of the index, and includes the big four banks such as Commonwealth Bank of Australia (ASX: CBA). Materials is the second largest sector and includes companies such as BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).
Investing in the index is simple: investors can buy shares in any ASX 200-listed company through a broker, or buy into an exchange-traded fund (ETF), which tracks the index as a whole and is traded like a common share.
