FTSE Global All Cap Index

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The FTSE Global All Cap Index is a free-float, [note 1] market-capitalization weighted index representing the performance of around 7400 large, mid and small cap companies in 47 developed and emerging markets worldwide, including the USA. The index is derived from the FTSE Global Equity Index Series [1] and was launched on September 22, 2003 (base date December 31, 1986). [2]

The index is tracked by the Vanguard Total World Stock Index Fund investor shares (VTWSX) and the Vanguard Total World Stock ETF (VT). [note 2] [note 3]

Methodology

FTSE index methodology is summarized in the table:

FTSE methodology summary [3]
Weighting methodology Market-cap-weighted, adjusted for free float.
Rebalancing methodology Periodic reviews. Annual country reviews on a region-by-region basis.
Tier 1: Broad-market classification Included: Shares listed on a stock exchange or recognized market that are in top 98% of each region by full market cap. Excluded: Convertible preferred shares or loan stocks.
Tier 2: Economic classification (developed or emerging markets
  • Wealth (GNI per capita)
  • Total stock market capitalization
  • Breadth and depth of market
  • Any restrictions on foreign investment
  • Reliable and transparent price discovery
  • Efficient market infrastructure
  • Oversight by independent regulator
Tier 3: Geographical classification (region or country
  • Permission for direct equity investment by non-nationals
  • Availability of timely data
  • Ability to retrieve dividends and capital gains in a timely manner
  • Demonstration of international interest
  • Existence of adequate liquidity
Tier 4: Style classification (market-cap breakdown for large-, mid-, and small-cap)
  • Large-cap: >72%
  • Mid-cap: Between 72% and 92%
  • Small-cap: (Applies buffers for each capitalization band)

Country constituents

The index is comprised of holdings from 47 countries.

FTSE Global All Cap ex US Index constituent countries (June 28, 2013) [2]
Country Country Country Country Country Country
Australia Czech Republic Hungary Malaysia Philippines Switzerland
Austria Denmark India Mexico Poland Taiwan
Belgium/Luxembourg Egypt Indonesia Morocco Portugal Thailand
Brazil Finland Ireland Netherlands Russia Turkey
Canada France Israel New Zealand Singapore United Arab Emirates
Chile Germany Italy Norway South Africa United Kingdom
China Greece Japan Pakistan Spain United States
Colombia Hong Kong Korea Peru Sweden


Market capitalization ranges

The FTSE Global All Cap Index provides coverage of 98% of the world stock market capitalization. FTSE considers the market to consist of: [4]

  • Large cap stocks 70%
  • Mid cap stocks 20%
  • Small cap stocks 10%

Annual returns

Annual returns for the index are included in the table below. Benchmark returns are adjusted for withholding taxes.


Table. FTSE Global All Cap Index [2]
Year Returns
2018 -9.74%
2017 24.22%
2016 8.82%
2015 -1.82%
2014 4.37%
2013 23.69%
2012 16.69%
2011 -7.60%
2010 14.80%
2009 37.50%
2008 -42.20%
2007 12.30%
2006 22.50%
2005 12.00%
2004 17.00%
2003 36.20%

(View Google Spreadsheet in browser, then File --> Download as to download the file.)


Notes

  1. In March 2013, FTSE adopted a fundamental policy of using actual free float percentages (rounded up to the next 1%) in its indexes. The move was taken to reduce unnecessary turnover in the indexes. See Free Float Adjusted - FTSE, for extended discussion.
  2. The Vanguard Total World Stock Index Fund investor shares (VTWSX) and the Vanguard Total World Stock ETF (VT) tracked the FTSE All-World Index through December 18, 2011, and the FTSE Global All Cap Index thereafter.
  3. The Vanguard Total World Stock Index Fund is also available in an Institutional (VTWIX) share class. This share class is commonly used in the corporate retirement plan market.

References

External links