FTSE 100 FDEW: A FTSE Russell index

We use both the FTSE 100 and the FTSE 100 FDEW in our products. This page of our website provides a reference resource for professional advisers wanting to know more about the FTSE 100 FDEW.

The FTSE 100 Fixed Dividend Equal Weight Custom Index (‘FTSE 100 FDEW’) is developed, calculated and published by FTSE Russell, as part of its range of index options. It measures the performance of the same 100 largest companies on the London Stock Exchange that make up the FTSE 100, the mainstream UK index.

The FTSE 100 FDEW is an example of smart beta, in other words, indices that have a rules-driven, factor-based approach in their methodology. It has been developed by FTSE Russell to help investment banks provide better terms (in other words, higher potential returns or lower risks) for certain types of structured product, mainly due to the way that investment banks hedge structured products which are linked to the FTSE 100.

The FTSE 100 FDEW is different to the FTSE 100 in two important ways:


  • Firstly, the 100 shares in the index are all equally weighted, at 1%, by FTSE Russell, instead of being weighted according to their ‘market capitalisation’ (which means how big or small each company is, based on the value of its shares).
  • Secondly, the index is based on a total return index, including all of the dividends paid by the companies, with a fixed dividend deduction of 50 points per year included in the calculation of its daily index level.


ADVISER RESOURCES

TEMPO: FTSE 100 FDEW AT A GLANCE  
TEMPO: FTSE 100 FDEW INTRODUCTION AND OVERVIEW  
TEMPO: FTSE 100 FDEW PLAN BROCHURE DESCRIPTION (PLAIN ENGLISH)  
SOCIETE GENERALE: FTSE 100 FDEW OVERVIEW  
SOCIETE GENERALE: FTSE 100 FDEW MONTHLY FACTSHEETS  
SOCIETE GENERALE: FTSE 100 FDEW ANIMATED VIDEO  

GENERAL RESOURCES: FTSE RUSSELL, MSCI, ETC.  
GENERAL RESOURCES: WEB LINKS  
  • FTSE 100 FDEW DAILY LEVEL

  • To access the FTSE 100 FDEW daily level (including the ability to compare it with the FTSE 100) through the FT website: CLICK HERE