blog

ASX Top 20 Companies List

Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

Get It Now
As Seen On
by Gavin in Blog
February 1, 2022 0 comments
asx top 20 companies

The ASX top 20 companies make up the ASX 20 List. Companies in the list are publicly traded on the Australian Securities Exchange.

Companies that have earned the right to be listed in the ASX 20 are required to meet certain qualification metrics and must be listed on the Australian Securities Exchange in 2021.

Just like other ASX indexes, companies could be replaced at the beginning of every quarter based on their market cap and eligibility.

Rebalancing can also take place during this time to ensure the fund is managed appropriately.

Standard & Poor’s is responsible for managing the index and ensuring adequate performance.

Contents

The ASX 20 has been an excellent financial index for a lengthy period of time and offers investors access to invest in 20 of Australia’s best-performing companies.

One interesting fact about the ASX 20 is that the companies included actually equate to approximately half of Australia’s entire share market capitalisation.

Nearly all of the companies included in this fund perform amongst the best in their economic sector or industry.

Companies can only be added to the ASX 20 if they are selected by Standard & Poor’s or the Australian Securities Exchange.

The companies are selected and ranked by their market cap and must meet all of the eligibility requirements.

Every quarter, companies may be rebalanced to adjust the ASX 20 fund appropriately.

List of ASX 20 Companies

Investors should always be prepared for companies to be added or removed at the beginning of a new economic quarter.

Here is the most-recently updated list of ASX 20 companies, sorted by alphabetical order.

Sorted by Alphabetical Order

Symbol Company Industry
ALL Aristocrat Leisure Consumer Discretionary
ANZ ANZ Bank Financials
APT Afterpay Information Technology
BHP BHP Materials
CBA Commonwealth Bank Financials
COL Coles Group Consumer Staples
CSL CSL Health Care
FMG Fortescue Metals Group Materials
GMG Goodman Group Real Estate
MQG Macquarie Group Financials
NAB National Australia Bank Financials
NCM Newcrest Mining Materials
REA REA Group Communication Services
RIO Rio Tinto Materials
TCL Transurban Industrials
TLS Telstra Telecommunication Services
WBC Westpac Financials
WES Wesfarmers Consumer Staples
WOW Woolworths Consumer Staples
XRO Xero Information Technology

FAQs about the ASX 20 Index

Here are some answers to frequently asked questions that relate to the ASX 20 Index.

It’s important to understand several of these concepts before investing your money in any fund that is managed on the Australian Securities Exchange.

Is the ASX 20 Index considered to be a ‘safe investment’?

The ASX 20 offers the opportunity to invest in 20 of Australia’s top companies based on market cap.

The diverse collection of companies included in this index can certainly reduce a lot of the general risks that you might face when investing in the stock market individually.

The ASX 20 is definitely one of the safer investments over the last several years.

There’s no such investment that completely guarantees that your money is safe, but the ASX 20 is a very diverse investment fund that ensures your money is invested in reliable companies that have a proven track record of economic success.

How often does the portfolio composition change in the ASX 20?

Investors can expect the portfolio in the ASX 20 to be adjusted at the conclusion of every economic quarter.

It is not uncommon for a handful of companies to be replaced or rebalanced during these transitions.

The rebalancing process usually takes place in March, June, September, and December and is conducted by Standard & Poor’s and the Australian Securities Exchange.

Is the ASX 20 different from other ASX Indexes?

The ASX 20 is a little bit different from the other ASX Indexes because it only provides exposure to 20 of Australia’s top-performing companies while other variations of indexes like the ASX 200 provide investors a more diverse portfolio that includes more companies from more economic sectors and industries.

If you wanted to invest in the ASX 20 companies but also wanted to invest in additional companies to build a diverse portfolio, you might be interested in taking a look at either the ASX 50 or the ASX 200 because all of the companies are also included in those funds.

All of the ASX indexes are rebalanced on a regular schedule.

The ASX 20 generally has its companies in all of the other expanded variations of the ASX indexes because they are already in the top 20 companies in terms of market cap.

Final Thoughts

The ASX 20 is an excellent investment choice because all of the companies included in the fund have an excellent track record of success.

It’s worth noting that the ASX 20 is currently trading at around 4,000 points in October of 2021 and has the potential to keep growing over the next several months if market conditions remain favorable to investors.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

vol-trading-made-easy

Leave a Reply

Your email address will not be published.

Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

Get It Now