Financial Times Stock Exchange Group (FTSE)

The FTSE (pronounced “footsie”) refers to the FTSE Russell Group, a global provider of benchmark stock market indices, market data, and analytics. Owned by the London Stock Exchange Group, FTSE Russell creates and maintains indices that serve as performance benchmarks for investors and financial markets worldwide.

Key points

• The FTSE Russell Group produces widely used indices, with the FTSE 100 its best-known UK benchmark.
• FTSE indexes are market-capitalization–based benchmarks used by investors, funds, and analysts.
• Investors gain exposure to FTSE indices primarily through index-tracking funds and ETFs.

What FTSE does

FTSE Russell compiles and publishes indices representing different market segments—large-cap, mid-cap, small-cap, regional, sector, and thematic benchmarks. These indices are used as performance yardsticks, the basis for index-tracking products, and inputs to investment strategies.

The FTSE 100

The FTSE 100 tracks the 100 largest companies listed on the London Stock Exchange by market capitalization. It is market-cap weighted, meaning each constituent’s weight in the index reflects its total market value. The index is calculated continuously during trading hours and is often used as a proxy for the performance of the UK equity market.

Index constituents and weightings are reviewed and adjusted quarterly. The FTSE 100 typically includes major multinational and UK-headquartered blue-chip companies—examples of frequent top components include AstraZeneca, Shell, HSBC, BHP Group, and Unilever.

Other notable FTSE and Russell indices

FTSE Russell offers a wide range of indices to cover different market segments:
* FTSE 250, FTSE 350, FTSE All-Share (UK-focused benchmarks)
FTSE AIM 100, FTSE4Good, FTSE Dividend Growth
FTSE Nasdaq 500
Russell 1000, Russell 2000, Russell 3000 (US-focused Russell indices)
Equal-weight, factor, and geographic exposure variants

Investing in FTSE indices

You cannot invest directly in an index, but you can invest in funds that replicate or track them. Common vehicles include ETFs and index mutual funds that follow FTSE or Russell benchmarks. Examples include funds tracking the FTSE 100, FTSE 250, and FTSE All-Share indices.

Investors can also use derivatives or inverse products to gain leveraged or short exposure, though those carry higher risk and complexity.

U.S. equivalents and cross-border access

The closest U.S. equivalents in terms of broad-market prominence are the S&P 500 (large-cap US companies) and the Dow Jones Industrial Average (30 prominent US companies). U.S. investors can access FTSE exposure through US-listed ETFs or international brokerage accounts that offer UK-focused funds.

Stock exchange vs. stock market — brief distinction

• Stock exchange: an organized marketplace that facilitates buying and selling of securities (e.g., London Stock Exchange, New York Stock Exchange).
• Stock market: a broader term referring to the collection of exchanges and trading activity within a country or region.

Conclusion

FTSE Russell is a central indexing provider whose family of indices—including the widely followed FTSE 100—serves as benchmarks for the UK and global equity markets. Investors seeking exposure to these benchmarks typically do so via ETFs and index funds that track FTSE or Russell indices.