FTSEs

FTSEs, short for Financial Times Stock Exchange indices, are a family of UK equity benchmarks used to measure the performance of listed companies on the London Stock Exchange. The most prominent members are the FTSE 100, FTSE 250, and FTSE All-Share. The FTSE All-Share combines the top 100 and next 250 large- and mid-cap firms with eligible smaller companies, providing broad coverage of the UK market.

Methodology and composition: FTSE indices are free float–adjusted, market capitalization–weighted benchmarks. Weights reflect the market value of each company’s freely tradable shares, so larger firms have greater influence while restricted shares are excluded. Base values are set on a specified launch date in 1984 (commonly with a base of 1,000 points), and the indices track relative performance rather than absolute price. Constituents are reviewed regularly, with quarterly revisions to reflect changes in market capitalization and liquidity.

Usage and applications: FTSE indices are widely used as benchmarks by pension funds, asset managers, and individual investors. They underpin a broad range of financial products, including futures and options on FTSE indices, as well as exchange-traded funds and index funds designed to track UK equity performance.

History and governance: The FTSE brand originated in a collaboration between the Financial Times and the London Stock Exchange in 1984. Today the index family is administered by FTSE Russell, a provider of benchmark indices and data. The FTSE suite serves as the principal reference for UK equities and informs investment decisions, institutional mandates, and financial products globally.