What is the FTSE 250?
The UK has hundreds of mid-cap companies listed on the London Stock Exchange. You can trade or invest in a basket of these stocks with the FTSE 250 index. Learn more about the FTSE 250 and find out how it works.
How is the FTSE 250 calculated?
The FTSE 250 is calculated by weighing all stocks listed on the London Stock Exchange by market capitalisation. The 101st to 350th largest companies – by market cap – make it into index. As with other capitalisation-weighted indices, companies with a higher market cap represent a higher weight in the index and have a bigger effect on its price movements.
Which companies are listed on the FTSE 250?
Some of the top FTSE 250 constituents include Aston Martin, Marks & Spencer Group, Royal Mail and Virgin Money UK. You can view a full list of FTSE 250 constituents here. FTSE 250 companies are reviewed every three months. If one company’s market capitalisation overtakes another, the composition of the index might change.
What are the other FTSE indices?
The other FTSE indices include the FTSE 100, FTSE 350, FTSE SmallCap and FTSE All-Share. FTSE also has three indices for AIM stocks – smaller, growing companies listed on the London Stock Exchange. These include FTSE AIM UK 50, FTSE AIM 100 and FTSE AIM All-Share.
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What has the FTSE 250 returned over time?
The FTSE 250 returned an average of 13.0% per year from 2010 to 2019 for investors who reinvested their dividends. Without dividend reinvestment, the FTSE 250 returned around 10.0% per annum over this period. Returns depend on factors that impact the individual companies or industries on the index, and ultimately the index price.
FTSE 250 performance over the last ten years
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Ten-year annualised return | |
Total return with dividends reinvested (%)1 | 27.4 | -10.1 | 26.1 | 32.3 | 3.7 | 11.2 | 6.7 | 17.8 | -13.3 | 28.9 | 13.0 |
Total return without dividends (%)2 | 24.2 | -12.6 | 22.5 | 28.5 | 0.6 | 9.6 | 3.2 | 14.7 | -15.6 | 25.0 | 10.0 |
How can you get exposure to the FTSE 250?
There are two ways to get exposure to the FTSE 250 – trading and investing. If you want to trade the FTSE, you will do so via CFDs, and you can choose between cash indices and index futures. If you want to gain exposure to the FTSE 250 by investing, you can either buy exchange traded fund (ETF) shares or shares of individual constituents of the index via share trading.
1 FTSE Russell, 2020
2 Yahoo Finance, 2020
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