The FTSE 250 and S&P 500 are both stock market indices that track a certain number of stocks in an exchange or country. The S&P 500 is 500 stocks on US exchanges, chosen by a committee. The FTSE 250 is the 250 stocks after the 100th stock on the London Stock Exchange when you order the companies on the exchange by their market capitalisation.<\/p>
The S&P 500 and the FTSE 250 are collections of stocks from their respective exchanges \u2013 in the FTSE 250\u2019s case, it\u2019s a collection of stocks on the London Stock Exchange and in the S&P 500\u2019s case, it\u2019s a collection of US stocks.<\/p>
Another difference is how each index is constructed. The stocks that make up the S&P 500 are hand-picked by the US Index Committee, which picks the leaders in 11 sectors. The FTSE 250 is constructed by data alone \u2013 companies need to have a premium listing of equity shares on the main market of the London Stock Exchange and must have a minimum free float of 10% (UK incorporated) or 25% (non-UK incorporated). The stocks are ordered by their market capitalisation \u2013 the top 100 stocks make up the FTSE 100 and the following 250 make up the FTSE 250.<\/p>