S&P/ASX 200

The S&P/ASX 200 is Australia’s flagship equity benchmark, tracking the 200 largest, most liquid companies listed on the Australian Securities Exchange by float-adjusted market capitalisation. In practice, it captures the dominant share of Australia’s investable market, spanning major sectors such as financials, materials, healthcare, and consumer names. The index is maintained by S&P Dow Jones Indices under transparent rules on size, liquidity, and free float, with periodic rebalances to keep it investable and representative. You will often see the ticker shown as XJO on ASX or ^AXJO on data screens.

Performance is conventionally quoted in AUD, and investors commonly access it through ASX-listed index ETFs that track either the price or accumulation (total return) versions. Because Australia is a resource-heavy economy with large banks and global miners, the index’s returns are influenced by commodity cycles, China demand, domestic credit conditions, and the AUD. For global allocators, the ASX 200 serves as a clean, low-cost way to express an Australia exposure while staying diversified across 200 constituents.

Top Companies in the S&P/ASX 200 Index

How to Invest in S&P/ASX 200 from India?

You can get ASX index exposure most simply via ASX-listed ETFs that track the index (for example, IOZ or STW), held through an overseas brokerage account. As an Indian resident, you route money under the RBI’s Liberalised Remittance Scheme, which permits up to USD 250,000 per financial year for permitted capital account investments.

Before funding, map your full cost stack: bank FX spread, remittance fees and TCS at source, brokerage commissions, and the ETF’s ongoing expense ratio. Understand tax too. Capital gains and dividends from foreign securities are taxable in India, and dividends are paid in AUD, introducing INR/AUD currency risk.

If you prefer derivatives, ASX 200 futures trade on ASX’s derivatives venue, but those require additional approvals, margining, and sophistication. For long-term investors, a broad, low-fee ETF is usually the most straightforward route, provided you are comfortable with Australia’s sector tilt toward banks and miners and with AUD exposure relative to INR.

S&P/ASX 200 Historical Performance Chart

S&P/ASX 200 vs Other Global Indices

The ASX 200 index differs from peers in composition and drivers. Compared with the S&P 500, it is smaller and more concentrated in financials and materials, so commodity and housing cycles matter more to returns and dividends.

Against Japan’s Nikkei 225 or Europe’s FTSE 100, Australia typically offers a higher cash dividend yield and large-cap dominance, but less technology weight than the U.S. The index is float-adjusted market-cap weighted and rebalanced periodically, keeping it tradable via large, liquid ETFs.

Currency also matters. The ASX index exposure is in AUD, so INR-based investors experience a currency return component absent in domestic indices. In risk terms, the ASX 200 can lag in global tech-led rallies but tends to hold its own when resources and income-oriented sectors lead.

For asset allocators, it works as a regional building block alongside U.S., Europe, and Japan exposures, improving diversification when commodity cycles are out of sync with global tech cycles.