FTSE UK Index Series (2024)

FAQs

What is the FTSE UK series methodology? ›

The FTSE UK Index Series is designed to measure the performance of the UK equity market. Comprehensive and modular in nature, the series provides market participants with a complementary set of benchmarks that measure the performance of all size and industry segments of the UK equity market.

Overview. The FTSE UK Series is designed to represent the performance of UK companies, providing market participants with a comprehensive and complementary set of indexes that measure the performance of all capital and industry segments of the UK equity market.

A UK Nationality as defined by the FTSE UK Index Series Determining Nationality guidelines. A minimum free float of 10% for UK incorporates and 25% for non-UK incorporates. As a reminder, a greater than 5% free float is required within FTSE GEIS for all incorporates.

The FTSE4Good Index Series is a collection of socially responsible, or ESG stock indexes administered by the Financial Times Stock Exchange-Russell Group (FTSE). The purpose of these indexes is to highlight companies that score highly in measures of corporate social responsibility (CSR).

1 The FTSE4Good Index Series is designed to measure the performance of companies that have an ESG score above a specific threshold. 6.1. 2 The overall ESG Score from FTSE Russell's ESG Data Model is used as the core basis to determine the constituents of the FTSE4Good Index Series. 6.1.

FTSE Russell's index methodology takes account of the restrictions placed on the equity holdings of foreign investors in a company where these have been imposed by a government, regulatory authority or the company's constitution.

The FTSE UK Level Annuity Index Series is a set of benchmarks designed to allow users to compare changes in the value of a pre-retirement fund with changes in annuity prices.

The FTSE Global Factor Index Series is a suite of benchmarks designed to represent the performance of specific factor characteristics, with six single factor indices and additional combinations of factors comprising the index series.

The FTSE Index-level Composite Index Series reflects the performance of a combination of component indices and a cash component, with positive and negative weightings.

The FTSE 100 is an index consisting of the shares of the 100 biggest companies by market capitalisation on the London Stock Exchange (LSE). You can trade the index's price movements, or buy, sell or short shares of the constituents of the index.

How do I invest in the FTSE? ›

Perhaps the most direct way to invest in the FTSE 100 is to buy individual shares of FTSE 100 companies on a share dealing platform. If the shares you buy go up in value, you'll make a profit when you sell them.

The Financial Times Stock Exchange (FTSE), presently known as FTSE Russell Group, is a British financial organization specializing in producing index offerings for the global financial markets. The London Stock Exchange Group (LSEG) controls the FTSE Russell Group.

The FTSE4Good index series, launched in 2001, used transparent metrics of environmental, social and governance (ESG) performance to select its constituents, incentivizing companies to improve their sustainability practices.

The S&P 500 and Dow Jones Industrial Average are the top large-cap indexes. Notable mid-cap indexes include the S&P Mid-Cap 400, the Russell Midcap, and the Wilshire US Mid-Cap Index. In small-caps, the Russell 2000 is an index of the 2,000 smallest stocks from the Russell 3000.

Constituent selection

The FTSE4Good selection criteria are designed to reflect strong ESG risk management practices. In order to be included in the FTSE4Good Index Series companies must have an overall ESG Rating of 3.3 out of 51. This ensures only companies demonstrating strong management of ESG risks are included.

The FTSE Global Factor Index series uses a transparent methodology to achieve a controlled exposure to a target factor, while considering levels of diversification and capacity.

In order for a country to be classified as Developed, Advanced Emerging or Secondary Emerging, it must meet the required criteria for those categories as set out in the FTSE Quality of Markets matrix and also meet the minimum investable market cap and securities count thresholds which were introduced from January 2020.

Stocks are selected and weighted to ensure that the index is investable. Stocks are screened to ensure that the index is tradable. Index methodologies are freely available on the FTSE Russell website. The index is calculated based on price and total return methodologies, both real time and end of day.

FTSE Russell Factsheet

The Russell 1000 Pure Single Factor Target Exposure Indexes follow a consistent and transparent construction methodology in order to achieve controlled exposure to their targeted factor while avoiding any off-target factor exposure and respecting levels of diversification and capacity.