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Capped Indexes

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 indexes.

  • RIC Capped Indexes: Market-capitalization weighted indexes 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 indexes 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 utilized to ensure that the constituents do not breach the desired targets.
  • UCITS Capped Indexes: Market-capitalization weighted indexes 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 utilized to ensure that the constituents do not breach the desired targets.

For more information on available capped indexes, please see our spotlight on FTSE Global RIC Capped Indexes.

More about the FTSE Global Equity Index Series.

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Methodology

Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.