The FTSE eTX indexes cover all European technology companies with a market cap larger than e110M. The indexes are the first to bring together technology stocks trading on the various primary and growth markets throughout Europe. Calculated in real time, this unique and flexible index series will enable investors to follow the performance of all technology companies, particular sectors such as software, computer hardware and internet companies or the fast growing mid and small cap technology companies.
Medium and small cap technology companies which dominate Europe's new growth markets will be brought together in a single pan-European index - the FTSE eTX Innovation. The index will have two narrow based tradable indexes - the FTSE eTX 50 (pan Europe companies) and the FTSE eTX euro 50 (Euro zone companies only).
A dedicated technology web site will be created with the support of Deutsche Bank, one of the leading technology investment banks in Europe. The web site, which will be available from early October, will provide information on the FTSE eTX index series, and give up to the minute research and analysis on the constituent companies. FTSE and Deutsche Bank will be working together to actively promote the web site and indexes to investors.
In addition, leading investment bank, Nomura International Ltd, has worked with FTSE to identify all technology companies in Europe and create a back history for the indexes.
Mark Makepeace, Managing Director of FTSE said, "Today, technology companies form an important part of all investors' portfolios. The FTSE eTX All-Share provides fund managers with the tools to analyse and evaluate the European technology market. The FTSE eTX 50 and FTSE eTX euro 50 will enable investors to gain exposure to this fast growing part of the market quickly and at reasonable cost."
Initially, index funds are being launched on these indexes. Themis Fund Management will be launching a fund on the FTSE eTX Innovation index in early October when the index goes live. Close Fund Management plan to launch an index fund on the FTSE eTX euro 50 - to compliment their very successful FTSE techMARK 100 fund which is used extensively by institutional and retail investors.
Mike Styles, Chairman, Themis FTSE eTX Innovation Index Fund said, "In a sector as dynamic as European technology, investment decisions have to be based on the clearest, most accurate reflection of the market."
The FTSE eTX index series uses FTSE's widely accepted methodologies and industry standards, extending our coverage into European smallcap stocks. The FTSE Global Classification System is used to define technology companies. All constituents will be weighted according to their available free float. This is particularly important given the high levels of restricted holdings in technology companies.
