What is the FTSE 100?
Like the S&P 500 , the FTSE 100 is a common element of tracker funds, but what is it exactly? The FTSE 100 is an index that represents the performance of the 100 largest companies by market capitalization that are listed on the London Stock Exchange. These companies are chosen based on their market size, liquidity, and industry group. The index is widely regarded as a good indicator of the overall performance of the UK stock market. The index is calculated by FTSE Group, which is a subsidiary of the London Stock Exchange Group. The index is updated every 15 seconds during trading hours, and the value of the index is calculated using the prices of the individual stocks that make up the index. The FTSE 100 was first launched in 1984 with a base value of 1,000. Since then, it has grown to become one of the most widely-followed stock market indices in the world. The index is seen as a bellwether for the UK economy, and many investors use it as a benchmark for their own investment portf...