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What Is The FTSE 350, and How Does It Work?

by | Last updated 5 Jan, 2023 | Index Investing

The FTSE 350 is a lesser popular stock market index among British investors. It combines the FTSE 100 and FTSE 250 indices, granting exposure to large-cap, mid-cap, and small-cap stocks. The index is similarly market capitalisation-weighted and contains the 350th largest businesses listed on the London Stock Exchange.

The FTSE 350 was first launched in December 1983, making it older than both the FTSE 100 and FTSE 250. Today the index is maintained by the FTSE Russell Group – a subsidiary of the London Stock Exchange Group.

How does the FTSE 350 work?

The FTSE 350 contains 350 stocks selected based on their market cap. As of December 2022, the index’s total market value stood at just over £2.24trn. Compared to the approximate £3.78trn market cap of all publically listed companies on the London Stock Exchange, this means the FTSE 350 represents roughly 60% of the UK stock market.

For a company to join the FTSE 350 index, it needs to have at least the 350th largest market capitalisation in the United Kingdom. This is also the minimum threshold for a stock to enter the FTSE 250. Note that a stock can belong to multiple FTSE indices simultaneously.

Like other FTSE indices, the FTSE 350 is rebalanced every quarter in March, June, September, and December. If a business no longer meets the market cap requirements, it will be removed from the index at these intervals. Similarly, if a firm has grown sufficiently, it will be added to the index at these intervals, kicking out an existing constituent at the bottom of the list.

Being a capitalisation-weighted index also means that the stocks with the largest market cap have the most influence over the index’s level.

As of December 2022, the ten largest UK stocks within the FTSE 350 index are:

  1. AstraZeneca (LSE:AZN)
  2. Shell (LSE:SHEL)
  3. Unilever (LSE:ULVR)
  4. HSBC Holdings (LSE:HSBA)
  5. Diageo (LSE:DGE)
  6. BP (LSE:BP)
  7. British American Tobacco (LSE:BATS)
  8. Rio Tinto (LSE:RIO)
  9. Glencore (LSE:GLEN)
  10. GlaxoSmithKline (LSE:GSK)

What is the average return on FTSE 350?

Despite granting investors exposure to a broad range of small- and mid-cap stocks, the total performance of the FTSE 350 is closely aligned with the FTSE 100 index rather than the FTSE 250. This all boils down to the capitalisation-weighting used to determine the level of influence of each company within the index. As large-cap stocks are the largest, they have the most influence over the FTSE 350’s performance.

Since July 1994, the FTSE 350 has delivered an average total annual return of approximately 7.9%. That’s just ahead of the FTSE 100’s 7.2% but behind the FTSE 250’s 10.6% historical averages.

The slightly elevated return does come with the caveat of increased volatility. But it’s less extreme compared to the FTSE 250. As such, it could be an ideal index to track using an exchange-traded fund for a conservative investor seeking slightly higher returns without taking on too much additional risk.

FTSE 350 vs other indices

As previously mentioned, the FTSE 350 isn’t the only stock market index used by British investors. Other more popular indices include the FTSE 100, FTSE 250, and FTSE AIM 100.

FTSE 350 vs FTSE 100

The FTSE 100 index was launched in January 1984 and contains the largest 100 publically traded stocks on the London Stock Exchange by market cap. It is also rebalanced on the same quarterly schedule as the FTSE 350 and is similarly weighted based on the market capitalisation of its constituent shares.

The returns generated by the FTSE 100 have been slightly less impressive. However, the larger size of its constituents provides far more defence against market volatility. Furthermore, as most of the businesses within the index are mature, the majority pay a handsome dividend, more so than the companies inside the FTSE 350.

FTSE 350 vs FTSE 250

The FTSE 250 was launched on 12 October 1992. Like the FTSE 350, it’s also a market capitalisation-weighted index. And consists of the 101st to 350th largest companies listed on the London Stock Exchange.

The constituents are also added or removed every quarter. However, due to the smaller size, most companies within the FTSE 250 are either mid-cap or small-cap shares. Consequently, the index has historically been significantly more volatile than the UK’s flagship stock index.

Despite the increased index volatility, patient investors have been rewarded with superior returns versus the FTSE 100. Between October 1992 and August 2017, the FTSE 250 delivered a total return of 1,637% – or 11.8% annually.

FTSE 350 vs FTSE AIM 100

The FTSE AIM 100 is another market cap-weighted stock index. It was launched on 16 May 2005 and contains the largest 100 stocks listed on the Alternative Investment Market (AIM). AIM is a subsection of the London Stock Exchange. And it’s home to typically tiny businesses that are too small to be listed on the main exchange.

As such, even though the index contains the most prominent companies listed on AIM, these are still small-cap stocks. And several firms venture into micro-cap and penny stock territory.

FTSE 350 index sector weightings

Companies within the FTSE 350 cover a broad range of industries. And the subsequent weighting of each share within each sector makes the index fairly diversified. As such, some traders prefer it to track the state of the UK economy versus the FTSE 100. Why? Because the FTSE 350 contains large-cap, mid-cap, and small-cap stocks covering a broader range of business sizes.

Sector2022
Communications1.50%
Consumer Discretionary10.40%
Consumer Staples16.36%
Energy11.45%
Financials21.56%
Healthcare11.84%
Industrials10.72%
Technology1.23%
Materials9.05%
Real Estate2.33%
Utilities3.56%
Source: FTSE Russell FTSE 350 Index Factsheet

List of all FTSE 350 companies

TickerCompanySector
888888 HoldingsConsumer Discretionary
AAFAirtel Africa plcCommunications
AALAnglo AmericanMaterials
ABFAssociated British Foods plcConsumer Staples
ADMAdmiral GroupFinancials
AGKAggreko plcIndustrials
AGRAssura plcReal Estate
AGTAVI Global Trust plcFinancials
AHTAshtead Group plcIndustrials
AJBAJ Bell PlcFinancials
AMLAston Martin LagondaIndustrials
ANTOAntofagasta HoldingsMaterials
APAXApax Global Alpha LimitedFinancials
ASCLAscential PlcIndustrials
ASHMAshmore Group plcFinancials
ASLAberforth Smaller Companies TrustFinancials
ATSTAlliance Trust plcFinancials
AUTOAuto Trader Group plcTechnology
AV.Aviva plcFinancials
AVSTAvast plcTechnology
AVVAVEVA Group plcTechnology
AZNAstraZeneca plcHealthcare
BA.BAE Systems plcIndustrials
BABBabcock International GroupIndustrials
BAGBarr (A.G.)Consumer Staples
BAKKBakkavor Group PlcConsumer Staples
BARCBarclays plcFinancials
BATSBritish American Tobacco plcConsumer Staples
BBABBA Aviation plcIndustrials
BBGIBBGI Sicav SAFinancials
BBOXTritax Big Box REIT plcReal Estate
BBYBalfour Beatty plcIndustrials
BCGBaltic Classifieds GroupCommunications
BCPTBMO Commercial Property Trust LtdFinancials
BDEVBarratt Developments plcReal Estate
BEZBeazley plcFinancials
BGEOBank Of Georgia Group PlcFinancials
BGFDBaillie Gifford Japan Trust plcFinancials
BGSCBMO Global Smaller Companies PLCFinancials
BHPBHP Group PlcMaterials
BKGBerkeley Group Holdings plcReal Estate
BLNDBritish Land Co plcReal Estate
BMEB&M European Value Retail SAConsumer Discretionary
BNKRBankers Investment Trust plcFinancials
BNZLBunzl plcIndustrials
BOYBodycote plcIndustrials
BP.BP PlcEnergy
BRBYBurberry Group plcConsumer Discretionary
BRSCBlackRock Smaller Companies TrustFinancials
BRWBrewin Dolphin Holdings plcFinancials
BT.ABT Group plcCommunications
BVICBritvic plcConsumer Staples
BVSBovis Homes Group plcReal Estate
BWYBellway plcReal Estate
BYGBig Yellow GroupReal Estate
CAPCCapital & Counties Properties plcIndustrials
CARDCard Factory plcConsumer Discretionary
CBGClose Brothers Group plcFinancials
CCCComputacenter plcTechnology
CCHCoca-Cola HBC AGConsumer Staples
CCLCarnival plcConsumer Discretionary
CEYCentamin plcMaterials
CINECineworld Group plcConsumer Discretionary
CKNClarkson plcIndustrials
CLDNCaledonia Investments plcFinancials
CLICLS Holdings plcReal Estate
CNACentrica plcUtilities
CNECairn Energy plcEnergy
COACoats Group plcMaterials
COBCobham plcIndustrial
CPGCompass Group plcConsumer Discretionary
CPICapita plcReal Estate
CRDACroda International plcMaterials
CRHCRH plcMaterials
CRSTCrest Nicholson Holdings plcReal Estate
CSPCountryside Properties PlcReal Estate
CTECConvaTec Group PlcHealthcare
CTYCity Of London Investment TrustFinancials
CWKCranswick plcConsumer Staples
DC.Dixons Carphone plcConsumer Discretionary
DCCDCC plcEnergy
DGEDiageo plcConsumer Staples
DIGSGCP Student Living plcReal Estate
DJANDaejan Holdings plcReal Estate
DLGDirect Line Financials Group plcFinancials
DLNDerwent London plcReal Estate
DNLMDunelm Group PlcConsumer Discretionary
DOMDomino’s Pizza Group plcConsumer Discretionary
DPHDechra Healthcare plcHealthcare
DPLMDiploma plcIndustrials
DRXDrax Group plcUtilities
ECMElectrocomponents plcIndustrials
EDINEdinburgh Investment Trust plcFinancials
EDVEndeavour MiningMaterials
EIGEI Group plcConsumer Discretionary
ELMElementis plcMaterials
EMGMan Group plcFinancials
ENOGEnergean EnergyEnergy
EQNEquiniti Group plcIndustrials
ERMEuromoney Institutional Investors plcIndustrials
ESNTEssentra PlcIndustrials
ETOEntertainment One LtdCommunications
EVREvraz plcMaterials
EXPNExperian PlcIndustrials
EZJeasyJet plcConsumer Discretionary
FCITF&C Investment Trust plcFinancials
FCSSFidelity China Special Situations PLCFinancials
FDMFDM Group plcTechnology
FERGFerguson plcReal Estate
FEVFidelity European Values plcFinancials
FGPFirstGroup plcConsumer Discretionary
FGTFinsbury Growth & Income Trust plcFinancials
FINFinablr plcIndustrials
FLTRFlutter EntertainmentConsumer Discretionary
FOUR4imprint Group plcCommunications
FRESFresnilloMaterials
FSFLForesight Solar Fund LtdFinancials
FSJJames Fisher & Sons plcIndustrials
FSVFidelity Special ValuesFinancials
FUTRFuture plcCommunications
FXPOFerrexpo plcMaterials
GAWGames Workshop GroupConsumer Discretionary
GCPGCP Infrastructure Investments LtdFinancials
GFRDGalliford Try PlcIndustrials
GFSG4S PlcIndustrials
GFTUGrafton GroupConsumer Discretionary
GLENGlencore plcMaterials
GLOContourGlobal plcUtilities
GNCGreencore Group plcConsumer Staples
GNSGenus plcHealthcare
GOGGo Ahead GroupConsumer Discretionary
GPORGreat Portland EstatesReal Estate
GRGGreggs PlcConsumer Discretionary
GRIGrainger PlcReal Estate
GSKGlaxoSmithKline plcHealthcare
GSSGenesis Emerging Markets Fund LtdFinancials
GVCGVC Holdings plcConsumer Discretionary
HASHays plcIndustrials
HFGHilton Food Group PlcConsumer Staples
HGTHG Capital Trust plcFinancials
HICLHICL Infrastructure plcFinancials
HIKHikma HealthcareHealthcare
HILSHill & Smith Holdings plc.Materials
HL.Hargreaves Lansdown plcFinancials
HLMAHalma plcIndustrials
HMSOHammersonReal Estate
HOCHochschild Mining PlcMaterials
HRIHerald Investment TrustFinancials
HSBAHSBC Holdings plcFinancials
HSLHenderson Smaller Cos Investment Trust plcFinancials
HSTGHastings Group Holdings plcFinancials
HSVHomeserve plcConsumer Discretionary
HSXHiscox LtdFinancials
HTGHunting plcIndustrials
HVPEHarbourvest Global Private EquityFinancials
HWDNHowden Joinery Group PlcMaterials
IAGInternational Consolidated Airlines Group SAIndustrials
IBSTIbstock plcMaterials
ICGTICG Enterprise Trust plcFinancials
ICPIntermediate Capital Group plcFinancials
IGGIG Group Holdings PlcFinancials
IHGInterContinental Hotels Group plcConsumer Discretionary
IHPIntegrafin Holdings PlcFinancials
IMBImperial Brands GroupConsumer Staples
IMIIMI plcIndustrials
INCHInchcape plcConsumer Discretionary
INFInforma plcCommunications
INPPInternational Public Partnerships LimitedFinancials
INVPInvestec PlcFinancials
IPOIP Group PlcFinancials
ISATInmarsat PlcCommunications
ITRKIntertek Group plcIndustrials
ITVITV plcCommunications
IWGIWG plcIndustrials
JAMJPMorgan American Investment Trust plcFinancials
JD.JD Sports Fashion plcConsumer Discretionary
JDWJ D Wetherspoon plcConsumer Discretionary
JE.Just Eat plcTechnology
JEOJupiter European Opportunities TrustFinancials
JFJJPMorgan Japanese Investment TrustFinancials
JIIJPMorgan Indian Investment TrustFinancials
JLGJohn Laing Group plcIndustrials
JMATJohnson Matthey PlcMaterials
JMGJPMorgan Emerging Markets IT plcFinancials
JUPJupiter Fund Management PLCFinancials
KAZKAZ Minerals plcMaterials
KGFKingfisherConsumer Discretionary
KNOSKainos Group plcTechnology
LANDLand Securities Group plcReal Estate
LGENLegal & General Group plcFinancials
LLOYLloyds Banking Group plcFinancials
LMPLondonMetric Property plcReal Estate
LRELancashire HoldingsFinancials
LSELondon Stock Exchange Group plcFinancials
LWDBLaw Debenture CorporationFinancials
MABMitchells & Butlers PlcConsumer Discretionary
MARSMarstons plcConsumer Discretionary
MCROMicro Focus International plcTechnology
MCSMcCarthy & Stone plcReal Estate
MDCMediclinic International plcHealthcare
MGAMMorgan Advanced Materials plcIndustrials
MGGTMeggittIndustrials
MKSMarks & Spencer Group plcConsumer Discretionary
MNDIMondi PlcIndustrials
MNGM&G plcFinancials
MNKSMonks Investment TrustFinancials
MONYMoneysupermarket.ComTechnology
MRCMercantile Investment Trust PlcFinancials
MROMelrose Industries plcIndustrials
MRWMorrison (Wm) SupermarketsConsumer Discretionary
MSLHMarshalls PlcMaterials
MYIMurray International Trust plcFinancials
NBLSNB Global Floating Rate Income Fund LtdFinancials
NESFNextEnergy Solar Fund LtdFinancials
NETWNetwork International HoldingsIndustrials
NEXNational ExpressConsumer Discretionary
NG.National GridUtilities
NMCNMC Health PlcHealthcare
NRRNewRiver REIT plcReal Estate
NXTNext plcConsumer Discretionary
OCDOOcado Group plcConsumer Staples
OSBOneSavings Bank plcFinancials
OXIGOxford Instruments plcIndustrials
PAGParagon Banking Group plcFinancials
PAGEPageGroup plcIndustrials
PAYPaypoint PlcIndustrials
PCTPolar Capital Technology Trust plcFinancials
PETSPets At Home Group PLCConsumer Discretionary
PFCPetrofacIndustrials
PFGProvident Financial plcFinancials
PHNXPhoenix Group Holdings PlcFinancials
PHPPrimary Health Properties plcReal Estate
PINPantheon InternationalFinancials
PLIPerpetual Income & Growth Inv TstFinancials
PLPPolypipe Group plcReal Estate
PLUSPlus500 LtdFinancials
PMOPremier Oil PlcEnergy
PNLPersonal Assets Trust plcFinancials
PNNPennon GroupIndustrials
POLYPolymetal International plcMaterials
PPHPPHE Hotel Group LtdConsumer Discretionary
PRTCPuretech Health plcHealthcare
PRUPrudential plcFinancials
PSNPersimmon plcReal Estate
PSONPearson plcCommunications
PTECPlaytech plcTechnology
PZCPZ Cussons PlcConsumer Discretionary
QLTQuilter PlcFinancials
QQ.QinetiQ Group plcIndustrial
RATRathbone Brothers plcFinancials
RB.Reckitt Benckiser Group PlcConsumer Staples
RBSRoyal Bank of Scotland Group plcFinancials
RCPRIT Capital Partners plcFinancials
RDSaRoyal Dutch Shell Plc A SharesEnergy
RDSbRoyal Dutch Shell Plc B SharesEnergy
RDWRedrow plcReal Estate
RELRELX plcIndustrials
RHIMRHI Magnesita N.V.Materials
RIORio Tinto plcMaterials
RMGRoyal Mail PLCIndustrials
RMVRightmove plcTechnology
RNKRank GroupConsumer Discretionary
RORRotork plcIndustrials
RR.Rolls Royce Holdings PlcIndustrials
RSARSA Financials GroupFinancials
RSERiverstone Energy LtdFinancials
RSWRenishaw plcIndustrials
RTNRestaurant GroupConsumer Discretionary
RTORentokil Initial PlcIndustrials
SAFESafestore HoldingsReal Estate
SBRESabre Financials Group PlcFinancials
SBRYSainsbury (J) plcConsumer Discretionary
SCINScottish Investment Trust plcFinancials
SCTSoftcat plcTechnology
SDPSchroder Asia Pacific FundFinancials
SDRSchroders plcFinancials
SEQISequoia Economic Infrastructure Income Fund LtdFinancials
SGCStagecoach Group plcConsumer Discretionary
SGESage Group plcTechnology
SGROSegro PlcReal Estate
SHBShaftesburyReal Estate
SHISig plcReal Estate
SKGSmurfit Kappa Group PlcIndustrials
SLAStandard Life Aberdeen PlcFinancials
SMDSSmith (DS)Industrials
SMINSmiths Group PlcIndustrials
SMPSt Modwen Properties plcReal Estate
SMTScottish Mortgage Investment TrustFinancials
SMWHWH Smith PlcConsumer Discretionary
SN.Smith & Nephew plcHealthcare
SNNSanne Group plcFinancials
SNRSenior plcIndustrial
SOISchroder Oriental Income FundFinancials
SOPHSophos Group plcTechnology
SPDSports Direct Intl PlcConsumer Discretionary
SPTSpirent Communications plcCommunications
SPXSpirax-Sarco Engineering plcIndustrials
SRESirius Real Estate LimitedReal Estate
SRPSerco Group plcIndustrials
SSESSE plcUtilities
SSONSmithson Investment Trust PlcFinancials
SSPGSSP Group plcConsumer Discretionary
STANStandard Chartered plcFinancials
STJSt James’s Place PlcFinancials
SVSSavills plcReal Estate
SVTSevern Trent PlcUtilities
SXSSpectris plcIndustrials
SYNCSyncona LimitedFinancials
SYNTSynthomer plcMaterials
TALKTalktalk Telecom Group PlcCommunications
TATETate & Lyle plcConsumer Staples
TBCGTBC Bank Group PlcFinancials
TCAPTP ICAP plcFinancials
TEMTempleton Emerging Markets Inv Tst plcFinancials
TEPTelecom Plus plcUtilities
TIFSTI Fluid Systems plcIndustrials
TLWTullow Oil plcEnergy
TMPLTemple Bar Investment Trust plcFinancials
TPKTravis Perkins plcConsumer Discretionary
TRIGThe Renewables Infrastructure Group LimitedFinancials
TRNTrainline plcConsumer Discretionary
TRYTR Property Investment Trust plcFinancials
TSCOTesco plcConsumer Discretionary
TUITUI AGConsumer Discretionary
TW.Taylor Wimpey plcReal Estate
UDGUDG Healthcare plcHealthcare
UKCMUK Commercial Property Reit LimitedReal Estate
UKWGreencoat UK Wind plcFinancials
ULEUltra Electronics HoldingsIndustrial
ULVRUnilever plcConsumer Staples
UTGUnite GroupReal Estate
UU.United Utilities Group PlcUtilities
VCTVictrexMaterials
VEILVietnam Enterprise Investments LtdFinancials
VMUKVirgin Money UK plcFinancials
VODVodafone Group plcCommunications
VOFVinaCapital Vietnam Opportunity Fund LtdFinancials
VSVSVesuvius plcIndustrials
VVOVivo Energy PlcEnergy
WEIRWeir Group plcIndustrials
WG.Wood Group (John) PlcIndustrials
WIZZWizz Air Holdings plcConsumer Discretionary
WKPWorkspace Group PlcReal Estate
WMHWilliam Hill plcConsumer Discretionary
WOSGWatches Of Switzerland Group plcConsumer Discretionary
WPPWPP plcCommunications
WTANWitan Investment Trust plcFinancials
WTBWhitbread plcConsumer Discretionary
WWHWorldwide Healthcare Trust plcFinancials

Is FTSE 350 a good investment?

As previously mentioned, the FTSE 350 index comprises constituents of FTSE 100 and FTSE 250. Investing in this index exposes an investor to the stability of the stocks of  FTSE 100 and the potential growth and volatility of  FTSE 250. This brings a balance in the risk and reward in an investment portfolio. It’s also worth pointing out that the weightings of different industries are more equally distributed than in the FTSE 250, which is mainly concentrated in the Financials sector.

Of course, the added growth potential does come with additional volatility due to the exposure to mid- and small-cap stocks. Therefore, tracking the performance of the FTSE 350 with an index fund may not be suitable. It all depends on an investor’s investment objective, risk tolerance, and time horizon.

The bottom line

The FTSE 350 isn’t the most widely followed stock market index in the United Kingdom. But it does serve as a potentially more accurate proxy for tracking the performance of the British economy. For investors seeking further growth without taking on too much additional risk, the FTSE 350 may be an ideal match.

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This article contains general educational information only. It does not take into account the personal financial situation of the reader. Tax treatment is dependent on individual circumstances that may change in the future, and this article does not constitute any form of tax advice. Before committing to any investment decision, an investor must consider their individual financial circumstances and reach out to an independent financial advisor if necessary.

Written By

Prosper Ambaka, Esq.

Prosper is a self-taught financial analyst and investor with years of experience. Inspired by Benjamin Graham, he employs a value-investing school of thought throughout his analyses. This has led to Prosper developing a wealth of knowledge in equities, foreign exchange, commodities, and global macroeconomic issues.

In 2019, he completed his Law degree and was called to the Nigerian Bar in 2021. Outside The Money Cog, Prosper encourages others to join the investment community through his lectures on financial literacy as well as investing strategies.

Current Holdings

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Edited & Fact Checked By
Zaven Boyrazian MSc

Zaven has worked in several industries throughout his career, from aircraft factories to game development studios. He has been actively investing in the stock market for the better part of a decade, managing over $1 million across multiple portfolios.

Specializing in corporate valuation, Zaven employs a modern take on the principles set out by Benjamin Graham to find new opportunities at fair prices.

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