FTSE Group (“FTSE”), the award-winning global index provider, today announces the launch of the FTSE US Total Market Index Series (FTSE US TMI Series), a comprehensive domestic index series which aims to provide US and international investors with the most broad-based representation of the US equity market.
The FTSE US Total Market Index Series represents over 99.5% of the total US equity market capitalisation. The series comprises over 4,500 stocks – more than any other US domestic index series available today. The series is rules-based and transparent, and its constituents are screened for size and investability with an entry requirement of at least USD 25 million in market capitalisation. All security types are included in the US TMI Series, including OTC issues, REITs, ADRs, master limited partnerships, and other equities. The eligible universe of the FTSE US TMI Series includes both the securities of companies incorporated and listed in the US, as well as the securities of companies not incorporated in the US but have a primary listing in the US and not in their country of domicile.
Originally designed as a sector-customised index for one of the largest public pension plans in the US, the index series was expanded to include all industry sectors represented in the widely-used and definitive global classification standard – the Industry Classification Benchmark (ICB). The FTSE US TMI Series reflects the most complete and broadest universe of US equity issues and can be seamlessly integrated with the FTSE Global Equity Index Series (FTSE GEIS) to provide a complete market cap weighted index solution for global benchmarking.
The FTSE US TMI Series is based on fixed percentage of market capitalisation bands rather than a fixed number of securities for each market cap size segment, which allows for movement with market cycles. The new index series is fully customisable and available in the following market capitalisation tiers:
- FTSE US Total Market Large Cap Index (70% of the universe)
- FTSE US Total Market Mid Cap Index (20% of the universe)
- FTSE US Total Market Small Cap Index (9.5% of the universe)
- FTSE US Total Market Micro Cap Index (0.5% of the universe)
Jonathan Horton, President – FTSE North America, comments: “FTSE is proud to provide institutional investors globally with the most comprehensive benchmark for the US equity market. The launch of the FTSE US TMI Series is further evidence of both our innovation in benchmarking and analytics and our commitment to the US marketplace.”
The FTSE US TMI Series has been designed with input from a wide variety of notable public and corporate pension plans, global banks and investment consultants through the FTSE US TMI User Group, and its transparent rules are overseen by an independent advisory committee of industry experts.