FTSE Index Types

BACKGROUND INFORMATION

FTSE Group is an independent company whose sole business is the creation and management of indices and associated data services. FTSE has no capital markets involvement. The company originated as a joint venture between the Financial Times and the London Stock Exchange. FTSE calculates over 60,000 indices daily, including more than 600 real-time indices. Investors use FTSE indices extensively worldwide for:

INDEX DESCRIPTIONS

Global Equity Indices

FTSE Global Equity Index Series
FTSE All-World Index Series
FTSE Global Small Cap Index Series
FTSE Global Islamic Index Series
FTSE Global Sector Index Series
FTSE4Good Index Series
FTSE Multinationals Index Series

UK Indices

FTSE UK Index Series

Domestic, Cross-Border and Partner Indices

FTSE European Index Series
FTSE Hong Kong MPF Index Series
FTSE Japan Index
FTSE Global Equity Index Series

The series covers over 7,000 securities in 48 different countries and captures 98% of the world's investable market capitalization.

The index is divided into Developed, Advanced Emerging and Emerging segments, giving investors the opportunity to develop their own investable universe. The modular nature of the series provides maximum breadth of options for structuring portfolios with indices calculated at regional, national and sector level.

FTSE All-World Index Series

The FTSE All-World Index covers 48 different countries and over 2,700 stocks and captures 90-95% of the investible market capitalization.

The index is divided into Developed, Advanced Emerging and Emerging segments, giving investors the opportunity to develop their own investible universe. The modular nature of the series provides maximum breadth of options for structuring portfolios with indices calculated at regional, national and sector level.

FTSE Global Small Cap Index Series

These indices provide investors with unparalleled access to over 4,000 liquid small cap stocks across 48 countries.

The indices capture the bottom 10% of seven regional markets in the FTSE Global Equity Index Series (which covers Large, Mid and Small Cap). The flexible structure of global, regional and country small cap indices provides asset managers with the ability to meet any mandate.

FTSE Global Islamic Index Series

The FTSE Global Islamic Index Series (GIIS) are equity benchmark indices designed to track the performance of leading publicly traded companies whose activities are consistent with Islamic Sharia principles. Pioneered by the International Investor (TII) and calculated by FTSE. Designed for those who wish to invest according to Islamic investment guidelines.

FTSE Global Sector Index Series

The next generation in international value and growth indices is FTSE Global Style. FTSE's index design reflects the latest thinking in the fields of value and growth investment management and meets the various needs of today's investors. FTSE Global Style is the best benchmark for passive and active style managers and asset owners, for assisting in asset allocation, performance measurement and investment monitoring processes.

FTSE4Good Index Series

The FTSE4Good Index Series has been designed to measure the performance of companies that meet globally recognized corporate responsibility standards, and to facilitate investment in those companies. Transparent management and criteria alongside the FTSE brand make FTSE4Good the index of choice for the creation of Socially Responsible Investment products.

FTSE Multinationals Index Series

Developed by FTSE in conjunction with Bacon & Woodrow and Barclays Global Investors following an extensive research and consultation process to define a 'multinational' company. This index series helps to tackle the increased concentration of developed equity markets by removing multinationals from each country's individual index. The remaining stocks then form part of a truly Local Index.

FTSE Multinationals Index - Based on the developed segment of the FTSE All-World Index, it is comprised of companies that derive 30% or more of their revenue outside the region in which they are incorporated.

FTSE Global 100 - consists of the top 100 companies from the FTSE Multinational Index. Suitable for OTC and exchange traded index-based derivative products.
FTSE UK Index Series

Designed to measure the performance of the UK market, these capitalization-weighted indices are comprised of companies traded on the London Stock Exchange. FTSE All-Share Representing 98-99% of the UK market capitalization.

FTSE All-Share is the aggregation of the FTSE 100, FTSE 250 and FTSE Small Cap Indices.

FTSE 100 are the 100 most highly capitalized blue chip companies, representing approximately 80% of the UK market. Used extensively as a basis for investment products, such as derivatives and exchange-traded funds. Recognized as the measure of the UK financial markets.

FTSE 250 is comprised of mid-capitalized companies not covered by the FTSE 100, representing approximately 18% of UK market capitalization.

FTSE 350 Supersector provides investors with a new view of one of the world's most important markets. The 18 highly tradeable real-time sector indices are derived from the blue chip companies in the FTSE 100 and FTSE 250 indices. FTSE Small Cap is comprised of companies with the smallest capitalization of the capital and industry segments. Represents approximately 2% of the UK market capitalization. FTSE UK Style provides investors with a measure of the performance of value and growth companies within the FTSE 350.
FTSE European Index Series

The European Series is designed to measure the performance of companies resident and incorporated in Europe. Suitable as the basis for investment products such as derivatives and exchange-traded funds. Calculated and published in Euros.

FTSE Eurotop 100 - 100 most highly capitalized blue chip companies in Europe

FTSE Eurotop 300 - the 300 most highly capitalized blue chip companies, this index is the definitive benchmark for pan-European equities.

FTSE Euromid - A definitive benchmark for medium capitalization pan-European equities.

FTSE Euro 100 - The 100 most highly capitalized blue chip companies resident and incorporated within countries representing the Europe Monetary Union (EMU).

FTSE Hong Kong MPF Index Series

FTSE has developed the Mandatory Provident Fund benchmarks, a tailored solution to meet the complex needs of the Hong Kong investment community. Watson Wyatt and the Hong Kong Investment Funds Association (HKIFA) selected the FTSE All-World Index Series as the base universe for a range of country and regional equity indices currency hedged back into Hong Kong dollars. Calculated daily, with the base currency of US dollars, the FTSE MPF Index Series is expressed in Hong Kong dollars.

FTSE Japan Index

The FTSE Japan Index provides investors with a real-time benchmark to reflect the performance of the Japanese market. Unlike the Nikkei 225 and TOPIX, the FTSE Japan Index, as part of the FTSE All-World Index Series, is free float adjusted, liquidity tested and managed by an independent committee to provide the most transparent and predictable view of the market.

Related Links
Source: FTSE
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