Is joining the BEL20 actually good for you?

Our national stock market index, the BEL20, is reviewed every year. This year, Lotus Bakeries and Euronav will replace Aperam and Proximus. The latter two will disappear from the index.

International research has shown that equities that disappear off a major stock market index often outperform newcomers to the index over the following few months and years.

In 2023, we saw a beautiful, even spectacular example of this. Melexis and Barco were newcomers to the index. Within one year they lost around 20% and 40%, respectively, while Colruyt and VGP, who disappeared off the BEL20, gained around 70% and 22%, respectively.

If the same thing happens in 2024, Aperam and Proximus could be expected to outperform Lotus Bakeries and Euronav.Even if we can't assume that 2023 will repeat itself, international research indicates that we can expect Aperam and Proximus to outperform Lotus Bakeries and Euronav if there is an upward trend on the stock market.