AEX: how to invest in the Dutch Index

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Published: April 7, 2021 by Andrew

The AEX, acronym for Amsterdam Exchange Index, is the most important index of the Dutch stock market. Formerly known as the Amsterdam Stock Exchange, it consists of up to 25 companies that are among the most important in terms of capitalization and listed on the Euronext Amsterdam stock exchange.

In this AEX guide you will discover:

  • What it is and what its components are
  • Whether investing in this index is worthwhile
  • What are the best tools to do it

We will offer you an overview of the best investment solutions currently available, so as to understand the concrete benefits for those who decide to focus on AEX! The best solution to invest without commissions on AEX is offered by ForexTB (visit the official website here).

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    When AEX was born and how it developed

    The largest index of the Dutch Stock Exchange was created in January 1983. It started with a level of 100 points and peaked in 2000, with a value of 703.18.

    A significant loss dates back to 29 September 2008, when the index closed at about 9%. In fact, the decade 1998-2008 was the worst in terms of AEX-related performances. Over time, it has stabilized reaching important levels and attracting the attention of the best companies, in terms of economic returns and operating in rapidly evolving sectors.

    Analyzing the AEX means understanding the state of well-being of a sector or, even better, of the entire nation.

    Considering analysts’ forecasts, the medium-term bullish phase is expected to continue. After exceeding 600 in November 2020 and 700 in April 2021, expectations are high. Many companies belonging to the AEX, in fact, are recording quite positive results.

    An example of the most famous trends could be the well-known Heineken beer brand, belonging to the multinationals with the highest yields.

    Is it worth to invest in AEX?

    The companies that make up the AEX occupy the sectors that currently have the greatest weight on the economy: oil and gas, technology, banking, industrial goods and services.

    This means that, like all indices, it stands out as a basket of more than promising stocks when viewed from an investor’s point of view.

    Betting on the most important index of the Dutch Stock Exchange implies a branching of one’s investments, so as to be more likely to obtain revenues.

    In fact, the AEX is the representative index of the Netherlands and their state of health, characterized by fairly stable prospects in a general framework.

    Aiming on an index belonging to the fifth economic power of the Eurozone can be an excellent choice if we consider the great potential associated with this nation.

    The Netherlands not only has the third highest per capita GDP in Europe, but also stands out as the second largest exporter of agricultural products in the world. For this reason, the Dutch market may be more attractive than you might think!

    Invest in AEX with CFD

    Aiming on a stock market index is always one of the best choices to take over the stock market and make a profit. Investing in a basket of shares rather than following the performance of individual shares allows you to segment the risk.

    Consequently, it will be easier to take advantage of the returns of the different trends present in an index. It is no coincidence that CFDs are very suitable for intervening on other markets as well, such as:

    • NASDAQ
    • Nikkei
    • FTSE 100
    • FTSE MIB

    In fact, it is very difficult for an Index to follow a negative line, as it would mean that an entire sector is experiencing a crisis phase. In general, even if certain companies are not experiencing positive moments, this does not weigh on the entire index. In fact, this is one of the main reasons that push investors to bet on these securities rather than on specific shares of a multinational.

    All this proves to be an advantage for online investors, as it requires less consistency and study than investing in the shares of a single company.

    But what is one of the best ways to benefit from investments on the AEX index?

    One cannot fail to mention CFD trading, as innovative as it is practical. To clarify the matter better, it is necessary to specify that CFDs (Contracts For Difference) are derivative financial instruments whose price is linked to that of another security, defined as underlying.

    With CFDs it is possible to bet on a stock without buying it directly. In addition, these involve bilateral gains: you can multiply your capital even if the market falls!

    AEX: the best trading platforms

    It is necessary to formulate the right market forecast, a simplified operation thanks to the many tools offered, free of charge, by online brokers. In fact, these platforms have the merit of making the financial world accessible even to those who do not have the necessary knowledge or large amounts to invest.

    The best online CFD trading platforms offer free, commission-free services and greater operational speed. These are characteristics that should not be underestimated if you intend to invest in the AEX index to obtain concrete benefits.

    Knowing how to take advantage of the liquidity of this index implies a constant study to formulate the right strategies and a constancy to stay informed on global events that affect its performance.

    By committing yourself and providing yourself with the right tools, betting on AEX could be an excellent investment choice!

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    eToroΒ is appreciated by users all over the world. It offers a clear platform to use, so as to allow even the less experienced to start taking their first steps in the world of online investments. Of course, it is a broker with the appropriate certifications that attest to its reliability.

    It is a multi-asset platform that allows you to access the most attractive markets, including stock market indices.

    The main feature of eToro concerns the introduction of two important functions: Social and Copy Trading. In short, it is the first trading network through which it is possible to interact with other users. In addition, it allows you to copy the moves made by personally selected traders to your profile!

    Copy Trading is more than useful for novice traders who have not yet fully understood the dynamics of the financial markets.

    In fact, it allows you to earn immediately and learn by observing the most skilled investors! It is not a method of investing and living on an income, but it is a useful tool to lay the necessary foundations for conscious investments.

    Try Copy Trading yourself and discover all the advantages of eToro!

    ForexTB

    ForexTBΒ is a platform recommended by both experts and connoisseurs of the financial sector for the extreme ease that distinguishes it.

    The ForexTB broker is widely appreciated for the advantages it offers to its users, free of charge and with the aim of leading them to obtain the desired results. In fact, it provides a valid didactic support, which can be downloaded for free from the platform itself.

    This is a trading guide (downloadable in PDF for free here)Β that starts from the basics up to more complex concepts. Everything is explained in a clear and practical way and, for this reason, it stands out as one of the teaching materials most recommended by analysts.

    To allow traders to apply the learned theory, ForexTB allows you to start with a demo account. In simple terms, it is possible to practice through a trading simulation, so as to test the success of the strategies developed without taking risks!

    Another advantage offered by this broker concerns the online trading signals. They are free signals, that is, advice and indications on possible market trends, developed by a team of experts. Also in this case, therefore, it can be understood that the broker tries to facilitate and simplify the investment process for its customers.

    Open a demo account and start investing with ForexTB!

    Trade.com

    Trade.comΒ is a multi-asset, safe and reliable platform for investing correctly in the securities that appear the most attractive. In fact, in 2019, the broker totally renewed its website, making it clearer and enhancing its platform.

    It offers a complete platform from all points of view, web-based and compatible with smartphones. In addition, it offers integrated risk analysis and management, so as to provide concrete help to users.

    An interesting section concerns the training offer that it offers to its customers. In fact, Trade.com, upon registration, offers a free e-book on online trading.

    Plus, you can start with a demo account!

    Therefore, the broker in question has created a platform that stands out as a more than valid support for investing quickly and with the awareness of the risks associated with each operation!

    Start investing with Trade.com and take advantage of all the advantages of the platform!

    AEX: Which companies does it include?

    When betting on a particular index, it is necessary to inquire about the companies that are included, which sectors they deal and when the less profitable ones are replaced.

    In addition, it is good to know that the trend of this index is strongly influenced by natural disasters and global events in general that affect the whole of Europe.

    Analyzing the AEX, it is immediately clear that it contains the 25 companies with the largest capitalization in Amsterdam. It is an index value weighted, i.e. the weight linked to each stock is determined by the capitalization of each. Furthermore, in order to be included in this index, companies must meet certain requirements:

    1. Strong liquidity, preferably above 10%
    2. Free float of 25%
    3. High yields

    During the first trading day of March, on an annual basis, the index is reviewed to understand which companies have the least returns and, if necessary, replace them.

    AEX components

    The most profitable companies listed on the AEX mainly occupy the production sector of basic materials for export, consumer services and healthΒ care.

    The current components of the index are:

    • ASRNL.AS – ASR Nederland N.V.
    • ADYEN.AS – Adyen N.V.
    • RDSA.AS – Royal Dutch Shell plc
    • INGA.AS – ING Groep N.V.
    • IMCD.AS – IMCD N.V.
    • PHIA.AS – Koninklijke Philips N.V.
    • NN.AS – NN Group N.V.
    • RAND.AS – Randstad N.V.
    • AKZA.AS – Akzo Nobel N.V.
    • AD.AS – Koninklijke Ahold Delhaize N.V.
    • AGN.AS – Aegon N.V.
    • DSM.AS – Koninklijke DSM N.V.
    • UNA.AS – Unilever PLC
    • KPN.AS – Koninklijke KPN N.V.
    • HEIA.AS – Heineken N.V.
    • WKL.AS – Wolters Kluwer N.V.
    • REN.AS – RELX PLC
    • GLPG.AS – Galapagos NV
    • ABN.AS – ABN AMRO Bank N.V.
    • MT.AS – ArcelorMittal
    • ASML.AS – ASML Holding N.V.
    • ASM.AS – ASM International NV
    • URW.AS – Unibail-Rodamco-Westfield SE
    • PRX.AS – Prosus N.V.
    • TKWY.AS – Just Eat Takeaway.com N.V.

    Is the Dutch index promising?

    Holland remains one of the best destinations for the capital of private or institutional investors attracted by the stable and predictable political situation.

    Very curious is the fact that the Dutch Stock Exchange is the oldest in the world, since it was founded in 1607. It is, therefore, a market that has always been considered attractive and rich in resources to be used for one’s own advantage.

    The Netherlands is distinguished by a large workforce and transparent access to European capital – two characteristics that attract a significant number of foreign investors.

    However, the various factors that influence the market must be considered. For example, the high volatility of stocks due to Brexit, a situation that only increases a sort of economic uncertainty.

    It is also necessary to specify that Holland is a country aimed at greater economic growth, aiming at important and innovative projects in various sectors. For example, it is an advanced nation in terms of renewable energy and medical research.

    Therefore, the Dutch market proves to be very attractive, both for traders interested in short and long positions.

    AEX forecast

    Developing precise market forecasts is the basis for successful trading. Thanks to the specific CFD trading platform, this has become much easier.

    Before deciding to invest all your money on the AEX index, it is good to have a general overview of the economic situation in which it is located.

    In general, in addition to the London Stock Exchange, the other Europeans are recording a slight increase! It is hoped to overcome this phase of economic stagnation, so as to be able to return to investing without fear.

    With a value of 710.63 (April 7, 2021), the AEX has implemented significant growth in the last 6 months. According to analysts, the medium-term scenario is always positive and could continue along this path.

    Therefore, a stability of the stock is expected for medium / long-term positions. Those who are attracted to short positions, ie day traders, can take advantage of the volatility of the AEX to achieve the desired profit targets.

    Of course, it is vital to pay attention to the sudden changes in the stock market financial scenario!

    The AEX stands out as a title suitable for dynamic investors who seek to operate to always obtain high revenues and are not afraid of any risks. No investment is 100% safe, you have to study and opt for the most stable securities of the period.

    The largest Dutch index, despite several negative phases, is now well established in the European market.

    aex

    Conclusions

    The Dutch index is among the largest belonging to the Euronext group, between Brussels, Paris and Lisbon.

    The AEX, representing the economic situation of Holland in general, proves to be a fairly stable stock. In addition, it is a market characterized by strong liquidity and in anticipation of a rise.

    Investing in the Netherlands could be much more attractive than you think. Despite being a fairly small nation, it is full of projects and companies aimed at exporting their products.

    Through the recommended platforms, useful and advantageous support, it will be possible to exploit the full potential of a constantly expanding market. Register today on:

    What does AEX stand for?

    The acronym stands for Amsterdam Exchange Index.

    How many companies are listed on the AEX?

    There are 25 companies listed on this index.

    What is the most famous company in the AEX?

    Most probably the best known is Philips, a company based in Eindhoven.

    Is it possible to trade the AEX index without fixed costs?

    Yes, thanks to the brokers that operate with CFDs, free tools with no fixed commissions.

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