What is the FTSE 250?

The FTSE 250 is a mid-cap stock index comprising the 101^st to 350th largest companies listed on the London Stock Exchange. As a capitalisation-weighted index, like the FTSE 100, companies included in the FTSE 250 are based on the value of the shares they have in the market.

Established in 1992, the companies which make up the 250 are more domestically focused than those in the FTSE 100. Typically, more than half their sales are domestic compared to less than a quarter for FTSE 100 companies. As a result, the FTSE 250 is viewed by many investors as a better indicator of the overall UK economy.