WIG20 — what is the WIG20 index?
Definition of the WIG20 index. How it works, what companies it contains and how to invest in the largest Polish companies.
Definition
WIG20 is an index of the 20 largest and most liquid companies listed on the Warsaw Stock Exchange (WSE). It is the most important indicator of the Polish stock market and a benchmark for funds investing in Poland.
How does WIG20 work?
The index is weighted by market capitalization taking into account free float (only shares in free circulation). The index composition is reviewed quarterly — companies can be added or removed based on capitalization and turnover.
Maximum share of one company in the index is 15%, and one sector — 30%.
Largest companies in WIG20
The index includes companies such as:
- PKO BP, PKN Orlen, PZU, KGHM, CD Projekt
- Allegro, Dino, Pekao, PGE, LPP
The composition changes over time. You can find the current composition on the WSE website.
Historical performance
WIG20 is a price index — it doesn't include dividends. For many years its nominal performance looked poor compared to the S&P 500. However, the WIG20TR index (total return, with dividends) gives a more complete picture.
Polish dividend companies (banks, energy) pay relatively high dividends (4–8%), which improves real returns.
How to invest in WIG20?
- Beta ETF WIG20 — ETF listed on WSE, tracking the WIG20 index
- WIG20 futures (FW20) — for advanced investors, with leverage
- Investment funds — many TFIs offer Polish equity funds
WIG20 vs S&P 500
| Parameter | WIG20 | S&P 500 |
|---|---|---|
| Number of companies | 20 | 500 |
| Country | Poland | USA |
| Currency | PLN | USD |
| Average annual return (10 years) | ~5% | ~12% |
| Dividend | 4–8% | 1.3% |
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