Comprehensive Overview of the FTSE 350 Index

 Highlights

• Defines the ftse 350 as a combined index of leading companies from the FTSE 100 and FTSE 250.

• Explains its structure, calculation method, and sectoral breadth.

• Describes its role as a broad representation of the UK equity market.

The ftse 350 is part of the equities sector in the United Kingdom, encompassing a broad range of listed companies. It merges constituents from both the FTSE 100 and the FTSE 250, creating an index that spans large-cap and mid-cap segments of the market.

Index Structure and Composition

The FTSE 350 is formed by combining the companies within the top hundred index and the mid-cap index. This creates a benchmark that includes the largest and most actively traded companies on the London Stock Exchange, providing an aggregated view of corporate performance across multiple capitalisation tiers.

Sectoral Representation

Constituents of the FTSE 350 come from a wide variety of industries. These include financial services, energy production, consumer goods, healthcare, industrial manufacturing, telecommunications, and technology. This diverse representation ensures that the index reflects a balanced cross-section of the UK economy.

Calculation Methodology

The index is calculated on a capitalisation-weighted basis, adjusted for free float. This means that the market value of each company, multiplied by its share of publicly tradable stock, determines its weighting within the index. Updates to the index occur periodically to maintain alignment with eligibility requirements.

Historical Background

The FTSE 350 was established to serve as a comprehensive indicator of the performance of major UK-listed companies. By merging the large-cap and mid-cap categories, it offers a broader scope than indices focused solely on one market tier. Its methodology has remained consistent to provide reliable long-term tracking.

Market Coverage and Usage

The FTSE 350 covers a substantial proportion of the total market capitalisation of the London Stock Exchange. It is often referenced in market summaries alongside related indices to provide an overall picture of market movement and composition. Both domestic and internationally oriented companies are included within its framework.