FTSE Short and Leveraged Indices

FTSE Group offers short and leveraged indices on the FTSE 100 and FTSE 250 indices. The new indices allow money managers to exploit the volatility in the UK market by enabling investors to go short the market or gear up, and will serve as the basis for ETFs, benchmarks and other index-linked financial products. The new indices are an extension of FTSE's range of Investment Strategy indices that are designed to help clients develop strategic investment tools that provide them with alpha returns relative to a standard market cap weighted benchmark. These indices represent an active management strategy wrapped in an index with the advantages of passive management: high capacity, transparency and easy implementation. The following indices have been created:

  • FTSE 100 Short Index (with -1 leverage)
  • FTSE 250 Short Index (with -1 leverage)
  • FTSE 100 Leveraged (leveraged with x2 gearing)
  • FTSE 250 Leveraged (leveraged with x2 gearing)
  • FTSE 100 Super Leveraged (leveraged with x3 gearing)
  • FTSE 250 Super Leveraged (leveraged with x3 gearing)
  • FTSE 100 Ultra Leveraged (leveraged with x4 gearing)
  • FTSE 250 Ultra Leveraged (leveraged with x4 gearing)

Both sets of indices take into account the geared returns and the interest income element of running the short position or the cost of financing the leveraged positions.

Further Information