The FTSE Index has been created by the FTSE Group. This group has created over one lakh bond, equity and hedge fund indices. The company provides services in 77 countries worldwide. The FTSE is owned by the London Stock Exchange and The Financial Times.
Investors use the FTSE indices for the following purposes:
- Measurement of performance
- Investment analysis
- Portfolio Hedging
- Asset allocation
- Creation of funds for index tracking
The FTSE index is managed and controlled by independent fund managers.
Some of the major FTSE indices are as follows:
- BBC Global 30 Index
- FTSE All-World Index
- FTSE CNBC Global 300 Index
- FTSE DIFX Index Series
- FTSE European Index series
- FTSE Global Bond Index Series
- FTSE Hedge
- FTSE All-Share Index
- FTSE UK Index Series
- FTSE Japan Index
The FTSE 100 Index contains 100 of the most capitalized companies that are trading in the London Stock Exchange. This index came into existence in 1984. The Financial Times Stock Exchange (FTSE) now is an independent company and the companies represented in the FTSE 100 index controls 80% of the total market capitalization of the LSE (London Stock Exchange). In England, the most widely used stock market indicator is the FTSE 100 index. The FTSE 250 index and the FTSE 359 index are also very important.
The FTSE All-Share Index has about 800 companies listed on it and it is a capitalization-weighted index. The company must be listed on the London Stock Exchange in order to be qualified for this index. This FTSE all-Share is the sum total of the FTSE 250 Index, the FTSE 100 Index and FTSE Small Cap Index.
The FTSE makes improvements and innovations to its indices in order to meet the ever changing market needs. Their index designs are innovative and the index solutions are customized.
Last Updated on : 23rd June 2015