Capped indices

The FTSE Capped indices provide a consistent and flexible capping methodology to help investors meet concentration and diversification requirements.

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  1. Overview
  2. Index performance
  3. Key resources
  4. Research and Insights
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FTSE Russell offers a consistent and flexible capping methodology to help investors meet concentration and diversification requirements. The capping methodology may be applied to most FTSE Russell indices.

  • RIC Capped indices: Market-capitalisation weighted indices designed to limit concentration in any single security as part of the Regulated Investment Company (RIC) concentration requirements for US registered funds. Constituents are capped quarterly so that no more than 20% of the indices weight may be allocated to a single constituent, and the sum of the weights of all constituents representing more than 4.5% of the index should not exceed 48% of the total index weight. Buffers are utilised to ensure that the constituents do not breach the desired targets.
  • UCITS Capped indices: Market-capitalisation weighted indices designed to limit concentration in any single security as part of the Undertakings for Collective Investment of Transferable Securities (UCITS) diversification requirements for European Union registered funds. Single or two-level capping approaches are available to limit the weight of companies. Buffers are utilised to ensure that the constituents do not breach the desired targets.

More about the FTSE Global Equity Index Series.

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Index performance

Key resources

Index announcements

Stay up-to-date and read the latest index change notices and announcements.

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Research and Insights

Research

WMR FX Benchmarks: The global standard for currency valuation

In this paper we review the 30-year history of the WMR FX benchmarks, explaining their role in the market, their use cases, their calculation methodology and their governance and oversight.

Research

Valuation Matters – are shifts in index composition impacting market valuations?

How have market valuations been impacted by changes in index composition? Can controlling for these changes improve the predictive power of valuations in forecasting forward-looking returns?

Article

Balancing out index weights

Equal-weight indices reduce concentration and improve diversification. Learn how equal-weighting balances stock contributions in indices like the Russell 1000.
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5 min

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