Indices such as the FTSE 100 play a huge role in investment. They are used for monitoring the performance of a market, for providing a benchmark for a tracker fund to replicate and as a reference when analysing a fund manager’s returns.
The rapid growth of tracker funds, combined with a greater focus on portfolio analytics, means that compiling indices is now big business. Providers charge licensing fees to fund firms to use their benchmarks, so owning famous indices that are in high demand for index funds can be very profitable.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: Eden Roc Cap Cana – fun, sun and golf in the CaribbeanTravel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yetThe chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry
-
Best FTSE 250 dividend stocks for high yieldsMoneyWeek analyses the FTSE 250 dividend stocks that could offer investors the greatest yields in 2025
-
Low-cost index funds for simple investingTips Index funds are an easy, low-cost way for investors to invest in a sector or asset class. Here’s a selection of the cheapest passive tracker funds on the market right now
-
Britain’s resilient blue chips – a refuge in the inflationary stormNews The UK's blue-chip FTSE 100 index has been the best-performing major stockmarket index so far this year.
-
Why you need to invest at least some of your money outside the UKAdvice Most investors tend to have a bias to their home market. But that’s a mistake, says Rupert Hargreaves. Investing in international stocks can help diversify your portfolio and protect your wealth from unnecessary risks.
-
Is it OK to buy Scottish Mortgage investment trust again?Tips Scottish Mortgage investment was hit hard by the tech-stock crash, and it is still being buffeted by headwinds. Should new investors wait for those to ease before buying in?
-
The FTSE 100 is doing moderately well – can this continue?Analysis The FTSE 100 performed well and better than expected in the first quarter of 2022. John Stepek looks at what has changed.
-
The spectre of stagflation shakes stockmarketsNews Stockmarkets are getting increasingly jumpy about stagflation, the combination of economic stagnation and high inflation, with America’s S&P 500 down by 4.8% in September and the FTSE 100 by 1%.
-
Too embarrassed to ask: what is an index?Videos The FTSE 100 is probably the best-known stockmarket index in the UK. But what exactly is an index?
