SIX Decrement Indices

The SIX Decrement Indices replicate an investment in the underlying Total Return index (e.g. SMI TR) less a constant Decrement in the form of a fixed annualized percentage value or a fixed annualized index point value. The performance reduction is applied on a daily basis as per the actual/360 day count convention. We offer Decrement index versions of the SMI and the SXI Switzerland Sustainability 25.

The Decrement is often called "synthetic" dividend. To have comparable returns with the Price Return (e.g. SMI PR) of the underlying index (e.g. SMI TR), the Decrement needs to be roughly of the size of the realized dividend.

Decrement indices are gaining high acceptance for their use as an underlying for structured products due to their coverage of the Swiss blue-chip equity market and simplified applicability for financial instruments.

The SIX Decrement Indices are calculated every second in the case of the SMI and every 3 minutes in the case of the SXI Switzerland Sustainability 25. The distribution of the index levels occurs once a day after closing.

There is no index review for the SIX Decrement Indices as they do not have any components. They are a derivation from the index level of the underlying base index.

The SMI Decrement Indices were launched on January 7, 2022, with a base date of December 30, 2010. At that time, they were standardized at a base value of 12,875.66. All SMI Decrement Indices are available in Total Return and Price Return calculation types.

The SXI Switzerland Sustainability 25 Decrement Index was launched on July 21, 2023 with a base date of June 10, 2014 and a base value of 100. It is only available as a Net Return calculation type.