The companies said the new indices are expected to raise the profile for small and mid-cap stocks, according to Reuters. They were also designed to be used as the basis for products such as Exchange Traded Funds (ETFs).
The FTSE Nasdaq 500 Index will be made up of the 500 largest companies listed by Nasdaq by full market capitalization, including Microsoft, Intel, and Cisco Systems, noted the Reuters report. The other three new indices are the FTSE Nasdaq Large Cap, the FTSE Nasdaq Mid Cap, and the FTSE Nasdaq Small Cap.
FTSE hopes this joint effort will give it a better place in the US Market. Reuters quotes FTSE Chief Executive Mark Makepeace as saying, “It’s a market that we’re very focused on at the moment and the last big market for us to really succeed in and take a big share in.”
The FTSE Group is best known for the FTSE-100 Index, made up of the 100 largest companies listed on the London Stock Exchange, according to Reuters. It provides a measure for the British economy for US investors.