The index will be calculated from Monday 16 October. An Exchange Traded Fund (ETF) named iFTSE TMT will be listed and traded on the London Stock Exchange extraMARK market segment from Tuesday 17 October. Further ETFs, index funds and derivative products are expected to follow.
A full list of qualifying sectors, constituent companies, ground rules and eligibility criteria for the FTSE TMT index can be found at http://www.ftse.com/tmt.html The index has been designed to minimise exposure to individual large constituents by using a tiering system for eligible constituents and will therefore ensure there is reduced concentration risk to investors.
FTSE Managing Director Mark Makepeace explained, “FTSE TMT Index has been produced in response to sector-based investment trends and increased interest in new ways of investing. The index has been designed to provide a platform for funds, such as the new iFTSE TMT, that allow retail and institutional investment in the popular new economy sector.”
Martin Wheatley, Director of Markets at London Stock Exchange added, “Now that iFTSE 100 has successfully established itself on extraMARK, we expect the number and range of ETFs to grow significantly, offering both professional and retail investors an efficient and effective way of gaining exposure quickly to different segments of the market.”