In June 2023, it was confirmed that the defense manufacturer Rheinmetall will replace the luxury goods manufacturer Kering in the EuroStoxx 50. This change will take effect after the close of trading on Friday, June 20, 2025, and marks a significant shift in the Eurozone’s leading index.
Background of the Index Adjustment
The main reason for this adjustment is the notable price gains of Rheinmetall in recent months. Since the outbreak of the war in Ukraine in February 2022, the company’s market value has dramatically increased to over 80 billion euros, and the stock has gained about 200 percent just in 2025. This development is primarily attributed to the increased defense spending of Western countries, particularly Germany’s planned multi-billion investments.
Challenges for Kering
In contrast, Kering is facing challenges with its core brand Gucci, leading to a decline in its stock price. Kering’s market value currently stands at just over 20 billion euros.
Impact on Investors
For investors, the change is particularly relevant as funds that physically replicate indexes must adjust their portfolios. These reallocations can have direct effects on the stock prices of the affected companies.
In summary, the switch means that Rheinmetall will replace Kering in the EuroStoxx 50 starting June 20, 2025. This decision reflects a significant shift within one of the most important European stock indices towards companies in the defense sector.