Introduction: Don’t Index-me Just Yet!
Picture this: you’re sipping your morning tea, scrolling through the Financial Times, when bam! You stumble upon the FTSE Indexes. What are these bouncy foot-inspired indexes, and why should you care? Well, dear reader, let’s take a whimsical journey through the world of FTSE Indexes and find out why these numbers from the FTSE Group make portfolio managers giggle with glee and investors jump with joy.
Meet the FTSE Family 🎩
FTSE All-Share Index: The Wide-Open Party
This awesome index covers over 600 shares and fixed-interest stocks, giving the term “all-inclusive” a whole new meaning. We’re talking about 98% of the market and 90% of turnover by value. It’s like the biggest, wildest party in the stock market, and everyone’s invited!
FT 30: Retro Chic Since 1935 📻
The Financial Times Ordinary Share Index (or FT 30 for short) used to be the daily superstar. Starting from a base of 100 in 1935, it showcases 30 industrial and commercial titans of British industry—not banks and insurance companies (they have their own fancy galas). Think of FT 30 as the vintage vinyl of market performance.
FTSE 100: The One with the Big Footsie Steps 🚶♂️
Ah, the FTSE 100, affectionately known as Footsie. Kicking off with a base of 1000 in 1984, it’s a weighted index representing the price of 100 securities of the UK’s largest companies, and it’s flexing every minute! Footsie’s on a quarterly review diet, so only the fittest companies stay in the club.
FTSE 250 and Beyond: Middle Children Shine Too 🧒
Not to be outdone, the FTSE 250 includes companies capitalized between £150 million and £1 billion. Add these to the FTSE 100, and voila! You get the FTSE 350. This 350-piece set is versatile; you can include or exclude investment companies based on your mood. 😜
Small is the New Big: FTSE Small Cap & Fledgling ✨
The FTSE Small Cap Index and FTSE Fledgling Index are for the smaller ventures trying to make it big. Covering companies capitalized between £20 million and £150 million, the Small Cap Index is the go-to for end-of-day calculations. The Fledgling Index steps in for the itty-bitty companies just waving hello.
A European Affair: Euro-Top 100 & Beyond 🎇
For those with a continental flair, the Euro-Top 100 and FTSE Euro 100 Indexes offer plenty of Euro-fun. Including the Euro-Top 100 of the EU’s most highly capitalized companies and the Eurofirst Index series working with Euronext NV, you’re in for a treat!
FTSE All World: Globe-Trotting Investors Unite! 🌍
Launched in 1987, the FTSE All World Index Series covers over 2800 share prices from 49 countries. It’s like a global fraternity of stocks, collecting data in euros, US dollars, sterling, and yen! Talk about inclusive!
flowchart TD
A[FTSE Indexes] --> B[FTSE All Share]
A --> C[FT 30]
A --> D[FTSE 100]
A --> E[FTSE 250]
A --> F[FTSE Small Cap]
A --> G[Euro-Top 100]
A --> H[FTSE All World]
Conclusion: Why the Index Craze?
By now, you’ve grown quite fond of these quirky, numerical superheroes from the FTSE Group. They guide portfolio managers, inform investors, and sometimes, just make for interesting tea-time conversation.
Quizzes: Test Your Index IQ 🎓
- What does FTSE stand for?
- Financial Times Stock Edition
- Faux Ticker Symbol Exchange
- Financial Times Stock Exchange
- Fill The Stocks Exactly
Correct Answer: Financial Times Stock Exchange
- When did the FTSE All World Index Series launch?
- 1987
- 1992
- 2003
- 1975
Correct Answer: 1987
- Which index is also known as “Footsie”?
- FT 30
- FTSE 250
- FTSE 100
- FTSE Eurofirst 300
Correct Answer: FTSE 100
- The FTSE 350 is a combination of which two indexes?
- FTSE 100 and FTSE Small Cap
- FTSE 100 and FTSE 250
- FT 30 and FTSE 100
- FTSE All World and FTSE 250
Correct Answer: FTSE 100 and FTSE 250
- Which companies are covered by the FTSE Fledgling Index?
- Companies too glam for the FTSE 100
- Fledgling tech startups
- Tiny companies not fitting in FTSE SmallCap Index
- New EU members
Correct Answer: Tiny companies not fitting in FTSE SmallCap Index
- Which index excludes banks, insurance companies, and government stocks?
- FTSE 250
- FTSE All-Share
- FT 30
- FTSE AIM
Correct Answer: FT 30
- How often are companies reviewed in the FTSE 100?
- Monthly
- Annually
- Quarterly
- Never
Correct Answer: Quarterly
- The FTSE Government Securities Index measures the movements of…?
- Retail Stocks
- Government Guilt (we mean Gilts)
- Industrial Shares
- Consumer Goods
Correct Answer: Government Gilt (we mean Gilts)
