FTSE All Share Index: A Complete Benchmark for UK-Listed Equities

Highlights

• FTSE All Share includes large, mid, and small-cap companies listed on the London Stock Exchange.

• It reflects the broadest representation of UK-listed equity market activity.

• The index follows a free-float market capitalisation methodology for weighting constituents.

The equity index sector includes benchmarks designed to track the overall performance of listed shares. The ftse all share is one such index, offering a comprehensive measure of the UK equity market by including companies from various size segments—large-cap, mid-cap, and small-cap—within a unified framework.

Structure and Composition of the FTSE All Share Index

The FTSE All Share Index combines the constituents of the FTSE 100, FTSE 250, and FTSE SmallCap indices. This integrated structure provides broad exposure to the London Stock Exchange’s main market. Companies within the index span diverse sectors such as energy, financials, healthcare, telecommunications, and consumer services.

Weighting Methodology and Calculation

The index follows a free-float adjusted market capitalisation approach. This means the weight of each company is proportional to its market value, excluding shares not available for public trading. As a result, larger companies influence the index more than smaller ones, although all listed entities meeting the eligibility criteria are included.

Eligibility and Review Process

Companies must meet specific criteria for inclusion, such as listing on the London Stock Exchange's main market and maintaining sufficient liquidity and tradable shares. The index undergoes periodic reviews to ensure it remains representative of the market. Changes to constituents are based on updated capitalisation rankings and compliance with eligibility standards.

Sectoral Distribution and Market Representation

The FTSE All Share Index covers a wide range of sectors, making it reflective of the UK economy’s overall composition. From financial institutions and industrial groups to pharmaceutical and consumer-focused companies, the index captures the diversity of business activity across the UK equity landscape.

Market Function and Usage

The FTSE All Share Index serves as a reference for monitoring the performance of UK-listed equities across all market capitalisation tiers. It is widely viewed as a barometer for evaluating the overall direction of the UK share market based on aggregate company performance.

Transparency and Data Accessibility

Real-time pricing and index changes are disseminated through global financial systems. These updates provide clarity on index movements and ensure that data related to the FTSE All Share Index is accessible across various financial channels. Technological systems supporting the index ensure accuracy and timely updates.

Integration with Sector-Specific Indices

While the FTSE All Share is an aggregate index, its components are also tracked within sector-specific sub-indices. These allow for granular tracking of individual industries, all while feeding into the broader performance of the FTSE All Share Index as a whole.