Swatch Loses Spot in Prestigious Swiss Stock Index
In a significant development for investors tracking Swiss markets, the Swatch Group will be removed from the benchmark Swiss Leader Index (SLI) next month. This decision comes after the watchmaker experienced a notable decline in both market capitalization and trading volumes throughout the past year.
The stock exchange operator SIX announced that Swatch will be replaced by Helvetia Baloise Holding in the 30-company SLI basket effective December 22, 2025. This change follows the merger of insurance companies Helvetia and Baloise, which created Switzerland's second-largest insurance group.
Why Swatch Faces Removal from Key Index
The composition of Swiss stock indexes reflects trading volumes and market capitalization of companies' free float over the previous twelve months. Unfortunately for Swatch, both metrics showed concerning trends that led to its removal.
Swatch shares have lost approximately 5% in value over the last year, primarily driven by falling sales and plunging profits. The company's struggles in the Chinese market have been particularly impactful, contributing significantly to its financial challenges.
As a result of this performance, Swatch's market capitalization has shrunk to 8.66 billion Swiss francs. Meanwhile, average trading volumes of its shares have also declined dramatically, falling by nearly one-third this year alone.
Historical Context and Index Significance
This isn't the first time Swatch has faced removal from a major Swiss index. The watchmaker was previously removed from the blue-chip Swiss Market Index in September 2021, when computer peripherals maker Logitech took its place.
The Swiss Leader Index represents a broader benchmark of Swiss companies, combining the top 20 blue-chip companies from the Swiss Market Index with the 10 largest mid-cap stocks from the Swiss Market Index Mid. This composition makes it an important indicator for investors seeking exposure to both large and mid-cap Swiss stocks through a single product.
Index funds, exchange-traded commodities (ETC), and derivatives typically track the SLI by holding its 30 constituents in the same proportions, making inclusion in this index crucial for maintaining visibility among institutional investors.
SIX normally reviews the composition of its indexes every September, but made an extraordinary adjustment in this case due to the Helvetia-Baloise merger and Swatch's declining metrics.
