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FTSE Is Moving Ahead With Index Caps Even After Big Tech Plunge


Published on 2025-03-21 11:01:24 - Bloomberg
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  • For index behemoth FTSE Russell, the likes of Apple Inc. are still too big for comfort
  • even after the recent $2 trillion selloff that's dethroned Big Tech from the stock market's leaderboard.

The Financial Times Stock Exchange (FTSE) is proceeding with plans to implement caps on the weighting of individual companies within its indices, despite a significant drop in the value of major technology stocks. This decision comes in the wake of a tech sector sell-off, where companies like Apple, Microsoft, and Amazon saw their market values decrease sharply. The FTSE Russell, which manages the FTSE indices, aims to mitigate the risk of any single stock dominating the index's performance. The capping will ensure that no single company can influence the index disproportionately, promoting a more balanced representation of the market. This move is part of a broader trend among index providers to adjust methodologies in response to market concentration risks, particularly in sectors like technology which have experienced volatile swings in valuation.

Read the Full Bloomberg Article at:
[ https://www.msn.com/en-au/money/savingandinvesting/ftse-is-moving-ahead-with-index-caps-even-after-big-tech-plunge/ar-AA1BnFVv ]