Direct Answer
The S&P/BVL Lima 25 is a rule-based measurement of top 25 most liquid companies listed on the Lima Stock Exchange, maintained by S&P Dow Jones Indices/BVL. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets.
What this index covers
The S&P/BVL Lima 25 covers top 25 most liquid companies listed on the Lima Stock Exchange, within the Peru market. S&P Dow Jones Indices/BVL defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number.
The name states a target of 25 companies. A target is not a guarantee of the exact count on any given day: corporate actions, dual share classes and pending additions all move the real number around it.
How constituents are weighted
Constituents are weighted based on their liquidity scores, which are calculated by the BVL, so the index is non-market capitalization weighted.
The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little.
What qualifies for inclusion
Index composition is derived from the S&P/BVL Peru General Index, and each company is represented once by its Designated Listing. Companies are selected top down by liquidity score until the target constituent count of 25 is reached.
Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does.
When the membership is revised
The index is rebalanced twice a year, effective after the close on the third Friday of March and September. The reference date for composition changes is five weeks before the rebalancing date, and index shares use closing prices from seven business days before the rebalancing date.
Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider.
The rule that surprises people
The top 20 companies by liquidity score are selected whether or not they are current constituents, then current constituents ranked 21 to 30 are selected top down until the count reaches 25. The liquidity score is the geometric average of amount traded, number of transactions and trade frequency over the prior 12 months.
References
- S&P Dow Jones Indices/BVL: S&P Dow Jones Indices, S&P/BVL Peru Indices Methodology (S&P/BVL Lima 25 Index section), as published 2023. Every rule described on this page is taken from this document.
Current S&P/BVL Lima 25 constituents
S&P Dow Jones Indices/BVL publishes and licenses the S&P/BVL Lima 25 constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights.
Related reading
- All stock market indexes: how indexes are built, weighted and revised.
- Emerging Markets indexes: others covering the same region.
- Index concentration: measuring how much of an index sits in its largest holdings.
- Index rebalancing and inclusion effects: what happens to a stock when index membership changes.
Frequently Asked Questions
Who maintains the S&P/BVL Lima 25?
S&P Dow Jones Indices/BVL maintains the S&P/BVL Lima 25 and publishes the methodology document that defines its eligibility and weighting rules.
What does the S&P/BVL Lima 25 measure?
It measures top 25 most liquid companies listed on the Lima Stock Exchange. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself.
Where can I see the current S&P/BVL Lima 25 constituents?
S&P Dow Jones Indices/BVL publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence.