FTSE 250

1 Year Chart

The FTSE 250 (pronounced “Footsie”) is an index of the top 250 publicly listed companies on the London Stock Exchange by size of market value (capitalisation) after the FTSE 100. Constituents within the FTSE 250 therefore range from the 101st to the 350th largest in size by market value. The term FTSE stands for Financial Times Stock Exchange, due to a previous joint venture between the LSE and the Financial Times. 

The bars in the above chart are known as candlesticks. Each candlestick represents the amount the FTSE 100 has moved in one trading day, with the bottom of the candlestick representing the lowest value of the index, and the top of the candlestick representing the highest.

Investors can invest in the FTSE 250 through a number of different methods. One can buy an index tracker (Exchange Traded Fund) that fully replicates the FTSE 250 and buys all 100 companies within the fund. A buyer of said ETF would therefore have exposure to the entire index. The price of the fund will track the performance of the FTSE 100 on a constant basis. Investors can also pick and choose different companies and sectors within the FTSE 250 to gain partial exposure to the market.