FTSE Introduces New Dividend+ Indices

Two innovative new tradable FTSE indices are now live – FTSE UK Dividend+ and the FTSE EPRA/NAREIT Europe ex UK Dividend+ Index. The two tradable indices have been created in response to the growing demand for higher yielding asset classes. As tradable indices, both are designed to support derivatives products and Exchange Traded Funds (ETFs). FTSE has already licensed Barclays Global Investors (BGI) to create Exchange Traded Funds on each index.

The FTSE UK Dividend+ is based on the FTSE 350, and contains the 50 highest constituents from the FTSE 100 and FTSE 250, when ranked by one-year forecasted dividend yield. The constituents’ weightings within the index are determined by their dividend yield as opposed to market capitalisation. Investors will find the index a good way of capturing the performance of higher yielding stocks, and benefit from the lower correlations to the traditional market cap weighted indices. The FTSE EPRA/NAREIT Europe ex UK Dividend+ contains high yielding real estate stocks, selected from the FTSE EPRA/NAREIT Global Real Estate Index universe. To become eligible for inclusion into the index, each stock is required to have a one-year forecasted dividend yield of at least 2%.

The dividend information for the FTSE UK Dividend+ is provided to FTSE by Markit Group Limited (“Markit”), the leading industry source for independent mark-to-market pricing, asset valuations, dividend forecasting and index services.

For more information please visit www.ftse.com/realestatedividend+ and www.ftse.com/ukdividend+