Crafting the FTSE All-World Index: A Journey from Universe to Investable Assets

July 28, 2026

FTSE Russell, a global leader in index and benchmark solutions, plays a crucial role in empowering investors worldwide. With a rich history spanning over four decades, the organization is dedicated to developing innovative investment tools across various asset classes. Their expertise assists investors in making informed decisions, managing risk, and identifying new opportunities. FTSE Russell's solutions are utilized by a diverse clientele, including asset owners, managers, ETF providers, and investment banks, for benchmarking performance, creating funds, and analyzing investment strategies, all underpinned by robust governance and operational integrity.

Unveiling the Rigorous Selection Behind a World-Class Index

The Genesis of an Index: From Vast Universe to Defined Criteria

The construction of a robust stock market index like the FTSE All-World Index begins not with a predefined roster of prominent enterprises, but with a comprehensive global landscape. This initial phase involves establishing clear eligibility guidelines that encompass a wide array of factors, including specific countries, diverse exchanges, various market segments, eligible companies, and distinct security types. This foundational step ensures a systematic and inclusive approach to index creation.

The Filtration Process: Sculpting a Manageable and Investable Portfolio

Once the expansive universe of potential securities is identified, a meticulous filtering process is applied. Starting with an impressive pool of nearly 35,000 securities sourced from all eligible global markets, FTSE Russell systematically evaluates each against stringent criteria. This includes assessing governance standards, free float requirements, foreign ownership limitations, and liquidity, ultimately distilling the initial universe into a refined collection of approximately 4,270 securities that form the FTSE All-World Index, as projected for March 2026.

The Value Proposition: Transparency, Rules-Based Design, and Practicality

The cascading nature of these eligibility criteria highlights FTSE Russell's pivotal role as a premier index provider. This method ensures that the final index is not merely a collection of assets but a carefully curated representation of global markets. Its rules-based foundation guarantees transparency, while its practical design ensures that the index remains trackable and accessible for investors, effectively mitigating risks associated with market inefficiencies and ensuring investability.