FTSE 350 Index

Updated on 2023-08-29T12:01:06.350483Z

What is FTSE 350 Index?

The FTSE 350 index comprises all the companies of FTSE 100 index and FTSE 250 index by market capitalisation and listed on the London Stock Exchange. It includes the largest 350 companies by market capitalisation traded on London Stock Exchange.

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Understanding FTSE 350 Index

There are so many FTSE indexes under which several different are traded in the London stock exchange. These indexes are based on the market capitalization of the companies, determined by multiplying the issued number of shares with the current share price of a company. The Financial Times Stock Exchange, a subsidiary of LSE, managed the indices the London Stock Exchange main market.

The FTSE 350 index stands for The Financial Times-Stock Exchange 350 share index, it is a weighted index of 350 largest companies by market capitalisation on the London Stock Exchange.

The FTSE 350 is the aggregation of FTSE 100 (100 largest companies by market capitalisation) index and the FTSE 250 (the largest companies above 101 to 250). Some of top Constituents of FTSE 350 index are Unilever Plc (ULVR), AstraZeneca Plc Ord (AZN), HSBC Holding Plc Ord (UK REG) (HSBA), Diageo Plc Ord (DGE), Rio Tinto Plc Ord (RIO), GLAXOSMITHKLINE Plc Ord (GSK), BP Plc (BP), British American Tobacco Plc Ord (BATS), Royal Dutch Shell Plc 'A' Ord (RDSA), Royal Dutch Shell Plc 'B' Ord (RDSB).

Frequently Asked Questions (FAQs)

What are the merits of FTSE 350 Index?

Merits of FTSE 350 index include the following:

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1. Less risk

Investors believes that FTSE 350 index is less risky because in includes more mature companies which are less volatile. Investors prefer to invest their money in the companies of FTSE index in comparison of AIM index companies.

2. Security

If an investor or trader is looking for security than FTSE 350 is the best option of it. FTSE 350 includes largest companies by market capitalization, basically the companies on FTSE 100 and FTSE 250 indices. These companies have strict rules and regulations and less chances of fraud.

3. Liquidity

FTSE 350 comprises the largest companies of FTSE 100 and FTSE 250 by market capitalisation traded in the LSE market. These are the companies for whom investors are always ready to invest that makes these companies more liquid in comparison than the AIM market. 

What is the difference between FTSE 100 Index, FTSE 250 and FTSE 350 Index?

FTSE 100, FTSE 250 and FTSE 350 are the indices of FTSE and are determined by the market capitalisation of the companies. The market capitalisation of companies is determined by using free float methodology and it is also called market value of a company. The differences between the three indices are:

FTSE 100 index includes the largest 100 companies by market capitalszation, listed and traded on the London stock exchange. The companies of FTSE 100 are global giants, such as HSBC, Shell and BP.

FTSE 250 index includes the companies above 100 so the 101st to the 350th largest companies are the part of the index. The FTSE 250 companies are mainly includes the biggest Construction & Engineering companies like Babcock International Group, Balfour Beatty plc, and Bakkavor Group Plc.

FTSE 350 index is a combination of the companies of FTSE 100 and FTSE 250. The FTSE 350 index refers to the largest 350 companies traded on the UK stock market.

How is FTSE 350 index related to FTSE 350 Yield Indexes?

The FTSE 350 index include the 350 largest company based on market capitalisation by combining the companies of FTSE 100 and FTSE 250. The FTSE 350 Yield indices help in ranking the companies in order of dividend yield. It also determines a boundary between FTSE 350 Lower Yield and FTSE 350 Higher Yield to make sure the market capitalisation of each index is approximately 50% of the FTSE 350 index’s market capitalisation.