What is the FTSE 350?
A look at the FTSE Group
FTSE is an acronym for the Financial Times Stock Exchange. They are subsidiaries of the London Stock Exchange. The FTSE group creates and manages index offerings for financial markets to trade, such as the FTSE 100 and FTSE 350.
The FTSE 350 is a subset of the FTSE 100, consisting of the next 250 largest companies listed on the London Stock Exchange after the top 100. It is a market capitalisation weighted index which means that larger companies have greater influence over the value of the index due to their higher market capitalisation. The index aims to represent around 85% of UK market capitalisation and therefore provides an accurate snapshot of performance in the UK stock market.
What is a stock index?
Stock Indices are formed by measuring a basket of stock from different companies. For instance, the FTSE 100 is produced by the Financial Times Stock Exchange and measures the value of the top 100 companies listed by their highest market capitalisation.
What makes up the FTSE 350?
The FTSE 350 is a combination of the FTSE 100 and the FTSE 250. FTSE 100 are the 100 largest listed companies on the London Stock Exchange by market capitalisation. The FTSE 250 are the next 250 mid-cap (mid-capitalised) companies. The FTSE 350 is a weighted stock market index of 350 largest listed companies.
Other FTSE Indices
We have covered the FTSE 100, 250 and 350. The other main FTSE UK indices are the FTSE All-Share, FTSE AIM UK 50 Index, FTSE AIM 100 Index and the FTSE AIM All-Share. AIM is an acronym for Alternative Investment Market. These indices are made from companies listed on the London Stock Exchange.
It should be noted that FTSE Russell also offers numerous indices around the globe. This could be the FTSE All-world BRIC Index or the FTSE Thailand 30 Index.
Figure 1 FTSE The Index Company
rading indices with Pepperstone
Pepperstone offers trading on the most popular indices across three different regions. They are the UK & Europe, Americas and APAC & Africa. The UK100 (FTSE100), GER40 (DAX) and US30 (DJI) are available to trade 24 hours a day throughout the trading week.
For more information on the benefits of trading indices through Pepperstone, please click on this link.
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