We analyze the 4 most important stock market indices for Denmark, a small but prosperous country in the North of Europe.
Denmark is famous for many things: its quality of life, its generous welfare state, and its cost of living. But very few people know about the stock market indices in Denmark.
Notwithstanding that, Denmark’s stock market has been one of the best performers since the 2008 financial crisis. In fact, it has been one of the few stock markets that has managed to outperform the almighty US market. And that is impressive, considering Denmark does not have any Apple or Amazon.
Denmark is one of the most developed countries in Europe, with very strong public finances, and a strong currency pegged to the euro. If it was not because of this peg, the Danish Krona (DKK) would probably trade significantly higher.
In addition to that, Denmark is also home to some multinational companies that may be interesting for global investors. Among them we can highlight Pandora, Novo Nordisk, SimCorp, Maersk, Carlsberg and Danske Bank.
For those interested in investing in Denmark passively, we analyze its most important stock market indices. The aim is to highlight the alternatives available when it comes to choosing an ETF.
OMX Copenhagen 25
Calculated and published by the Nasdaq group, the OMX Copenhagen 25 is the main index of the Copenhagen Stock Exchange. It is composed of the 25 companies with the largest market capitalization and most liquidity in the country.
The index was introduced in 1989 as OMX Copenhagen 20, since, until 2017, it had only 20 constituents. An additional 5 companies were added later on to give the index a bit more diversification and exposure to underrepresented sectors of the economy.
Within the index, the 25 companies are weighted according to their market capitalization adjusted for free float.
Some of the most prominent stocks of the OMX Copenhagen 25 are Novo Nordisk, Danske Bank and Vestas Wind Systems.
If you are interested in additional information about the OMX 25, you can visit the Nasdaq website.
OMX Copenhagen All Share
The OMX Copenhagen All Share index, also calculated by Nasdaq, the owner of the Copenhagen Stock Exchange, is composed of all listed companies in the country.
As a result, it includes all stocks within the OMX Copenhagen 25 and those that, due to their low market capitalization or little liquidity, fail to be part of it. Consequently, we can find many small-cap stocks in the OMX Copenhagen All Share Index.
Because the weighting is based on the market capitalization adjusted by free float, the largest ones tend to move the index, so the correlation between the OMX All Share and the OMX 25 is extremely high.
For additional details, check out this link.
Another alternative for those who want to invest in the Scandinavian country through an ETFis the MSCI Denmark.
Calculated and published by the US company MSCI, it includes all Danish stocks that are part of the global stock index of developed countries MSCI World. Therefore, all these companies are relatively large and liquid.
The exact number of stocks within the MSCI Denmark fluctuates over time, but is usually between 15 and 20. This means it shares many similarities with the OMX Copenhagen 25, although it is somewhat more concentrated.
More information can be found on the MSCI website.
Finally, for those who are interested in investing in all Scandinavian countries, the OMX Nordic 40 index is a good alternative.
It is a Pan-Scandinavian index, composed of Swedish, Danish, Finnish and Icelandic stocks. Click here for more information.
I hope you found this little post about Denmark’s most important stock market indices useful and encourage you to subscribe to my newsletter:
And if you want to learn about stock indices in other countries, check out this section:
Funds and ETF