IDX30 vs LQ45: Index Comparison and How to Choose for Passive Investors
Complete comparison of IDX30 vs LQ45 indices: composition, overlap, historical performance, volatility, ETF/mutual fund expense ratios, and recommendations for passive investors.
IDX30 vs LQ45: Complete Guide for Passive Investors
When you decide to invest in index mutual funds or Indonesian ETFs, you’ll encounter two indices most often used as benchmarks: IDX30 and LQ45.
Both are Indonesian blue-chip stock indices. Both contain stocks with the highest liquidity and market capitalization. Both are frequently used as underlying assets for index mutual funds and ETFs.
So, which one is better?
This article will dissect the differences between both indices in detail — including composition, overlap, historical performance, volatility, and most importantly for passive investors: expense ratios of available products.
What is IDX30?
IDX30 is an index containing 30 stocks with the largest market capitalization and highest liquidity on the Indonesia Stock Exchange (BEI).
IDX30 Selection Criteria
| Criteria | Description |
|---|---|
| Liquidity | Highest daily transaction value |
| Market capitalization | Largest market cap |
| Free float | Number of publicly traded shares |
| Financial condition | Positive financial reports |
| Frequency | Evaluated every 6 months (January & July) |
IDX30 Characteristics
- Number of stocks: 30
- Concentration: High — top 5 stocks can represent 50%+ of the index
- Dominant sectors: Finance (banks), consumer goods, telecommunications
- Launched: April 2012
- Rebalancing: 2x per year
What is LQ45?
LQ45 is an index containing 45 stocks with criteria similar to IDX30, but with broader coverage.
LQ45 Selection Criteria
| Criteria | Description |
|---|---|
| Liquidity | High daily transaction value |
| Market capitalization | Large market cap |
| Listing | Minimum 3 months on BEI |
| Financial condition | Good fundamentals, growth prospects |
| Frequency | Evaluated every 6 months (February & August) |
LQ45 Characteristics
- Number of stocks: 45
- Concentration: Medium — more diversified than IDX30
- Dominant sectors: Finance, consumer goods, telecommunications
- Launched: February 1997 (older than IDX30)
- Rebalancing: 2x per year
Quick Comparison Table
| Aspect | IDX30 | LQ45 |
|---|---|---|
| Number of stocks | 30 | 45 |
| Launched | 2012 | 1997 |
| Concentration | Higher | More diversified |
| Overlap | ~28 stocks out of 30 | ~28 stocks same as IDX30 |
| Rebalancing | January & July | February & August |
| Volatility | Slightly higher | Slightly lower |
| Historical returns | Nearly identical | Nearly identical |
| Correlation | >0.98 | >0.98 |
Key insight: Because of the high overlap (~28 stocks in common), both indices move almost identically.
Composition and Overlap
Top 10 Stocks in Both Indices (2026)
Here’s a comparison of the top 10 constituents by weight:
| Rank | IDX30 | Weight | LQ45 | Weight |
|---|---|---|---|---|
| 1 | BBCA | ~15% | BBCA | ~13% |
| 2 | BBRI | ~12% | BBRI | ~11% |
| 3 | BMRI | ~8% | BMRI | ~7% |
| 4 | TLKM | ~7% | TLKM | ~6% |
| 5 | ASII | ~5% | ASII | ~5% |
| 6 | BBNI | ~4% | BBNI | ~4% |
| 7 | UNVR | ~3% | UNVR | ~3% |
| 8 | HMSP | ~3% | HMSP | ~3% |
| 9 | ICBP | ~3% | ICBP | ~3% |
| 10 | INDF | ~2% | INDF | ~2% |
Weights are illustrative and change with market prices. Data as of early 2026.
Observations:
- Top 10 are nearly identical in both indices
- Weight differences due to different number of stocks (30 vs 45)
- IDX30 is more concentrated — top 5 can be 47% vs 42% in LQ45
Overlap Analysis
| Metric | Value |
|---|---|
| Stocks in IDX30 | 30 |
| Stocks in LQ45 | 45 |
| Overlapping stocks | ~28 |
| Overlap rate | 93% of IDX30 is in LQ45 |
This means: 28 out of 30 IDX30 stocks are also in LQ45. Only 2 stocks are exclusive to IDX30 (usually due to different rebalancing timing).
Stocks Exclusive to LQ45
The 15 stocks in LQ45 not in IDX30 are usually:
- Mid-cap stocks with high liquidity
- Stocks that recently met the criteria
- Stocks that dropped from IDX30 but still meet LQ45 criteria
Example stocks often in LQ45 but not IDX30:
- Some property stocks (BSDE, SMRA)
- Some mid-cap mining stocks
- Secondary consumer stocks
Historical Performance
Historical Returns (Annualized)
| Period | IDX30 | LQ45 | Difference |
|---|---|---|---|
| 1 Year | 5.2% | 4.8% | +0.4% |
| 3 Years (annualized) | 8.1% | 7.9% | +0.2% |
| 5 Years (annualized) | 7.3% | 7.1% | +0.2% |
| 10 Years (annualized) | 6.8% | 6.5% | +0.3% |
Price return (not including dividends). Illustrative data as of early 2026.
Comparison Chart (5-Year Illustration)
IDX30 ━━━
LQ45 - - -
│
150 │ ━━━
│ ━━━- - -
│ ━━━- - -
│ ━━━- - -
120 │ ━━━- - -
│ ━━━- - -
100 │━━━- - -
└──────────────────────────────────
2021 2022 2023 2024 2025 2026Correlation: >0.98 — both indices move almost identically.
Conclusion: Return differences are not significant. Both provide nearly the same exposure to the Indonesian stock market.
Volatility Analysis
Standard Deviation (Annualized)
| Metric | IDX30 | LQ45 |
|---|---|---|
| Std Dev 1 Year | 18.5% | 17.8% |
| Std Dev 3 Years | 20.2% | 19.5% |
| Std Dev 5 Years | 22.1% | 21.3% |
Maximum Drawdown (Last 5 Years)
| Event | IDX30 | LQ45 |
|---|---|---|
| COVID Crash (Mar 2020) | -37% | -35% |
| Recovery time | 14 months | 14 months |
Conclusion:
- IDX30 is slightly more volatile due to higher concentration
- Volatility difference is not significant (1-2%)
- Maximum drawdown nearly identical
Product Expense Ratios
Here’s where the difference that really matters for passive investors lies: the expense ratio of products tracking each index.
IDX30 Index Mutual Funds
| Product | Investment Manager | Expense Ratio | Min Investment |
|---|---|---|---|
| Syailendra MSCI Indonesia Value | Syailendra | 0.50% | Rp 50,000 |
| Principal Index IDX30 | Principal AM | 0.75% | Rp 10,000 |
| Simas Index IDX30 | Sinarmas AM | 0.80% | Rp 100,000 |
LQ45 Index Mutual Funds
| Product | Investment Manager | Expense Ratio | Min Investment |
|---|---|---|---|
| Avrist Indeks LQ45 | Avrist AM | 0.90% | Rp 100,000 |
| Pinnacle Enhanced Equity | Pinnacle | 1.00% | Rp 100,000 |
| BNP Paribas LQ45 | BNP Paribas | 1.10% | Rp 10,000 |
Expense ratios and products as of early 2026. Check latest prospectus for actual data.
IDX30 and LQ45 ETFs
| Product | Underlying | Expense Ratio | Ticker |
|---|---|---|---|
| Premier ETF IDX30 | IDX30 | 0.45% | XIIT |
| R-LQ45X | LQ45 | 0.50% | XISR |
| Premier ETF LQ45 | LQ45 | 0.55% | XPLQ |
Impact of Expense Ratio on Returns
Simulation of Rp 5 million/month investment for 20 years, 10%/year index return:
| Expense Ratio | Final Value | Difference from 0% ER |
|---|---|---|
| 0% (ideal) | Rp 3.79 billion | - |
| 0.5% | Rp 3.59 billion | -Rp 200 million |
| 0.75% | Rp 3.49 billion | -Rp 300 million |
| 1.0% | Rp 3.40 billion | -Rp 390 million |
| 1.5% | Rp 3.22 billion | -Rp 570 million |
Conclusion: A 0.5% expense ratio difference can mean Rp 200 million over 20 years!
📖 Read more: Mutual Fund Expense Ratios: How to Calculate and Why They Matter
Analysis: Which is Better?
Factors That Are the Same
| Aspect | IDX30 vs LQ45 |
|---|---|
| Historical returns | Nearly identical |
| Volatility | Nearly identical |
| Sector diversification | Same (dominated by banks) |
| Underlying liquidity | Both high |
| Risk | Same |
Factors That Are Different
| Aspect | IDX30 | LQ45 |
|---|---|---|
| Concentration | Higher (30 stocks) | Lower (45 stocks) |
| Product expense ratios | Generally lower | Generally higher |
| Product choices | Fewer | More |
Recommendation
For passive investors, choose based on expense ratio, not the index.
| Your Criteria | Recommendation |
|---|---|
| Want lowest expense ratio | Choose IDX30 products (generally 0.5-0.8%) |
| Want slightly more diversification | Choose LQ45 products |
| Want high-liquidity ETF | Premier ETF IDX30 or R-LQ45X |
| Want mutual fund with low minimum | Principal Index IDX30 (Rp 10,000) |
Simple formula:
- List IDX30 and LQ45 products available on your platform
- Compare expense ratios
- Choose the one with the lowest expense ratio
- If equal, choose IDX30 (simpler, 30 vs 45 stocks)
ETF vs Index Mutual Funds
Besides choosing the index, you also need to choose the product type: ETF or conventional mutual fund.
ETF vs Index Mutual Fund Comparison
| Aspect | ETF | Index Mutual Fund |
|---|---|---|
| How to buy | Via securities firm (like stocks) | Via APERD (Bibit, Bareksa) |
| Minimum | 1 lot = 100 units (~Rp 500,000-1,000,000) | Rp 10,000-100,000 |
| Buy fee | Broker commission (~0.15-0.25%) | 0% (free) |
| Sell fee | Broker commission + tax | 0% (free) |
| Expense ratio | Generally lower (0.4-0.6%) | Higher (0.5-1.0%) |
| Liquidity | Can sell anytime during market hours | T+2 to T+7 |
| Tax | Tax-free (same as mutual funds) | Tax-free |
| DCA friendly | Less so (must buy 1 lot) | ✅ Very (buy with Rupiah) |
When to Choose ETF?
- ✅ You have large capital per transaction (> Rp 5 million)
- ✅ You already have a securities account
- ✅ You want the lowest expense ratio
- ✅ You want intraday buy/sell flexibility
When to Choose Index Mutual Funds?
- ✅ You DCA monthly with small amounts (Rp 500,000-2,000,000)
- ✅ You want ease of buying via app (Bibit, Bareksa)
- ✅ You don’t want to deal with broker commission fees
- ✅ You’re a beginner just starting out
For most passive investors who DCA monthly, index mutual funds are more practical.
📖 Read more: ETF vs Mutual Funds: Complete Guide
Sector Diversification
Sector Composition of IDX30 and LQ45
| Sector | IDX30 | LQ45 |
|---|---|---|
| Finance (banks) | ~45% | ~42% |
| Consumer Non-Cyclical | ~15% | ~14% |
| Telecommunications | ~10% | ~9% |
| Basic Materials | ~8% | ~9% |
| Industrials | ~7% | ~8% |
| Consumer Cyclical | ~5% | ~6% |
| Energy | ~5% | ~6% |
| Others | ~5% | ~6% |
Observations:
- Both indices are heavily concentrated in the finance sector (banks)
- BBCA + BBRI + BMRI + BBNI can be 40%+ of the index
- Sector diversification is limited — this is a sector concentration risk
Do You Need More Diversification?
If you’re concerned about finance sector concentration, consider:
- Combining with global indices — why not just S&P 500?
- Combining with SRI-KEHATI — Indonesian ESG index with different composition
- Balanced mutual funds — already include bonds for asset diversification
But for pure Indonesian equity exposure, IDX30 and LQ45 are sufficient to represent the market.
Practical Strategies for Passive Investors
1. Simplest Strategy
Choose one product with the lowest expense ratio and DCA regularly:
| Platform | Recommended Product | Expense Ratio |
|---|---|---|
| Bibit | Principal Index IDX30 | 0.75% |
| Bareksa | Principal Index IDX30 | 0.75% |
| IPOT | Premier ETF IDX30 (XIIT) | 0.45% |
| Stockbit | Premier ETF IDX30 (XIIT) | 0.45% |
2. Core-Satellite Strategy
| Component | Allocation | Product |
|---|---|---|
| Core (80%) | IDX30 Index Mutual Fund | Principal Index IDX30 |
| Satellite (20%) | LQ45 ETF or individual stocks | Per preference |
3. Strategy for Large Funds (> Rp 100 million)
| Component | Allocation | Product |
|---|---|---|
| ETF | 60% | Premier ETF IDX30 (expense ratio 0.45%) |
| Mutual Fund | 40% | For more flexible monthly DCA |
FAQ
”Is IDX30 riskier because it’s more concentrated?”
In theory, yes. In practice, not significantly.
30 vs 45 stocks is indeed different, but because of 93% overlap, movements are almost identical. Historical volatility only differs by 1-2%.
”Why not invest directly in IHSG?”
IHSG (Indonesia Composite Index) contains 900+ stocks, including illiquid stocks and those with poor fundamentals. IDX30/LQ45 are “filters” — only the best stocks make it in.
📖 Read more: Why Not Just IHSG?
”Are there better index funds than IDX30/LQ45?”
Alternatives to consider:
- SRI-KEHATI — ESG index, different composition
- IDX80 — 80 stocks, more diversified
- MSCI Indonesia — international standard
But for beginners, IDX30 or LQ45 is more than sufficient.
”Should I buy both (IDX30 and LQ45)?”
No need. Because of 93% overlap, you’re only adding complexity without significant diversification benefit. Choose one with the lowest expense ratio.
”How do I know what stocks are in the latest index?”
Check the BEI (Indonesia Stock Exchange) website:
Or look at the fact sheet of the index fund/ETF you’re buying.
Conclusion
Summary
| Question | Answer |
|---|---|
| Which is better, IDX30 or LQ45? | Nearly the same — choose based on product expense ratio |
| Which has higher returns? | Nearly the same — difference < 0.5% per year |
| Which is riskier? | Nearly the same — IDX30 slightly more volatile |
| Which is more diversified? | LQ45 (45 vs 30 stocks) |
| Which has lower expense ratio? | IDX30 (generally) |
Final Recommendation
For passive investors in Indonesia:
- Don’t stress too much about choosing between IDX30 and LQ45 — both provide nearly identical exposure
- Focus on expense ratio — this is what really affects long-term returns
- Choose the product with the lowest expense ratio available on your platform
- Be consistent with DCA — this is more important than index choice
If you must choose one:
- Mutual fund: Principal Index IDX30 (expense ratio 0.75%)
- ETF: Premier ETF IDX30 / XIIT (expense ratio 0.45%)
Both are solid choices for building long-term wealth through passive investing.