Swatch Group, which owns brands such as Omega, Longines, and Tissot, is being removed from the Swiss Leader Index (SLI) due to its declining market capitalization and lower trading volumes.

The change will take effect on December 22, 2025, and Helvetia Baloise Holding, the second-largest insurance company in Switzerland, is replacing it in the benchmark index.

Swatch Group’s market capitalization and share trading volumes have fallen, which are key criteria for inclusion in the SLI. The decline is attributed to a significant drop in sales in China and pressure from competition, particularly from smartwatches.

This is not the first time Swatch Group has faced a stock index demotion, when it was removed from the Swiss Market Index in 2021. 

According to Reuters, Swatch shares have lost 5% in value over the last 12 months as sales fell and profits plunged due to falling sales in China. As a result, its market capitalization has shrunk to 8.66 billion Swiss francs ($10.9 billion), while the average trading volume of its shares has also fallen by nearly one-third this year.

Swatch Group was removed from the blue-chip Swiss Market Index in September 2021, when it was replaced by computer peripherals maker Logitech (LOGN.S). The SLI is a broader benchmark of Swiss companies, representing the top 20 blue-chip companies on the Swiss Market Index plus the 10 largest mid-cap stocks from the Swiss Market Index Mid. The benchmark is used by index funds, ETCs, and derivatives that track it by holding its 30 constituents in the same proportions, giving investors exposure to Swiss large- and mid-cap stocks in one product.