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JSE Indices Reference

What this page covers

The JSE publishes several indices from the same market, and they differ mainly in how they handle the shares held offshore in dual listed companies. That single choice explains most of the gap between them.

J203All Share code
J200Top 40 code
SWIXcorrects for offshore holdings
Quarterlycomposition review
The main indices
IndexCodeWhat it measures
All ShareALSI, J203Substantially all eligible listed companies by market capitalisation
Top 40J200The forty largest by market capitalisation
SWIX All ShareJ403Weighted by shares held on the South African register
Top 40 SWIXJ400The Top 40 on the same SWIX weighting
Capped SWIXJ433SWIX with a cap on any single constituent
Mid CapJ201The next tier below the Top 40
Small CapJ202Below the Mid Cap
Why the weighting matters
ItemDetail
ConcentrationThe Top 40 makes up the large majority of All Share value
ResourcesA heavy weight, so commodity prices move the index
Dual listingsCompanies listed here and abroad distort a plain market cap weighting
SWIX correctionCounts only shares on the South African register
CappingLimits how far one company can dominate
Which index a fund is likely to track
Fund typeUsual benchmarkWhy
Broad local equity trackerCapped SWIX All ShareLimits single-name concentration
Top 40 trackerTop 40 SWIXReflects locally held shares
Actively managed local fundCapped SWIX All ShareThe common performance benchmark
Property fundSA Listed PropertyA separate sector index
Retirement fund reportingCapped SWIXConcentration limits apply

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How these figures work

An index is a weighted average. The weighting decides what it actually measures, and the JSE publishes several versions of the same market because the obvious weighting produces a misleading result here.

Several of the largest companies on the JSE are dual listed, with most of their shares held abroad. Weighting by total market capitalisation gives those companies an influence far beyond the South African money actually invested in them. The SWIX versions correct for this by counting only shares held on the South African register.

★ A worked example

A dual listed company has a market capitalisation of R500 billion, but only 20% of its shares sit on the South African register.

In the plain All Share, it is weighted on the full R500 billion. In the SWIX version it is weighted on R100 billion, a fifth of the influence.

For a South African fund tracking the index, the SWIX weighting is the honest one: it reflects the shares that South African investors can actually buy. This is why most local index funds track a SWIX or capped SWIX version rather than the plain index.

✕ Common mistakes

  • Comparing a fund to the wrong index. A SWIX tracker measured against the plain All Share will look like it is under or outperforming when it is doing exactly what it should.
  • Assuming the All Share is diversified. The Top 40 dominates it, and resources dominate the Top 40. It is far more concentrated than the number of constituents suggests.
  • Ignoring rebalances. Composition is reviewed quarterly. Tracking funds must trade, which is why volume spikes around those dates.
  • Treating an index level as a return. Most quoted index levels are price indices and exclude dividends. Total return versions include them.

Notes on reading these figures

  • The All Share and the Top 40 move almost together because the forty largest companies dominate the total. Divergence between them is a signal about smaller companies, not about the market as a whole.
  • Most South African index funds track a SWIX or capped SWIX version rather than the plain index, because the plain version overweights companies whose shares mostly sit offshore.
  • Index composition is reviewed quarterly. A company entering or leaving forces tracking funds to trade, which is why volume spikes around a rebalance.

To put these figures to work, the JSE Trading Hours and Holidays runs the arithmetic on your own numbers, and All Share vs Top 40 covers the same ground in ordinary language. Which ETF should a beginner buy? and Beta Calculator go into the detail this table only summarises.

Terms used on this page

Definitions
ALSI
All Share Index, substantially all eligible listed companies.
SWIX
Shareholder weighted, counting only shares on the South African register.
Capped
A limit on any single constituent's weight in the index.
Free float
The portion of shares actually available to trade.
Rebalance
The quarterly review that adds and removes constituents.

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Frequently asked questions

What is the difference between the ALSI and the Top 40?

The All Share covers substantially all eligible companies; the Top 40 covers the forty largest. They move almost together because the largest dominate.

What does SWIX mean?

Shareholder weighted index. It weights by shares held on the South African register rather than by total market capitalisation.

Why cap an index?

To limit how far a single company can dominate. A capped SWIX restricts any one constituent's weight.

How often does composition change?

Quarterly, at the scheduled review. Entries and exits force tracking funds to trade.

Which index should I track?

Most South African index funds use a SWIX or capped SWIX version, because it reflects what local investors actually hold.

Does the index include dividends?

The commonly quoted level does not. Total return versions do, and the difference over long periods is substantial.