The Financial Times Stock Exchange 100 (FTSE 100) is a stock market index comprising the 100 largest companies on the London Stock Exchange (by market capitalization), which includes companies like BP, Barclays and Sainsbury’s.
While you can’t actually invest directly into the FTSE 100 (unless you bought shares in each of the companies in the index), you can get exposure to the index by investing in an exchange-traded fund (ETF) which tracks the performance of the stocks in the FTSE 100.
The FTSE 100 and coronavirus
As with the rest of the stock market, the FTSE 100 has recently dropped significantly in the face of the coronavirus pandemic. While every stock in the index is down this month, some have fared better than others. The potential advantage of investing in an index is to help diversify your portfolio and mitigate exposure to risk. However, certain FTSE 100 stocks are likely to perform markedly worse than others over the coming months, and it may be worth curating a list of FTSE 100 companies you want to invest in.
Finder survey: Are men or women more likely to have invested in the UK stock market?
Response
Male
Female
UK
34.21%
23.67%
Source: Finder survey by Pollfish of 1001 Canadians, January 2024
How to invest in the FTSE 100
Buy FTSE 100 stocks directly. You can buy individual stocks from the FTSE 100 index using a brokerage or share-trading platform. You could buy one share of each company to create your own index, or buy shares in select companies.Depending on which platform you use, you may be charged trading fees or commissions on every share you buy, which can end up being quite expensive.
Invest in a FTSE 100 ETF if you want exposure to all the companies in the FTSE 100 without having to buy individual stocks (and avoiding trading fees), you could instead invest in an FTSE 100 ETF. These are index funds that track the performance of the stocks in the FTSE 100.
How to start trading the FTSE 100. Whether you want to invest directly in FTSE 100 stocks, or invest in a FTSE 100 ETF, you’ll need to open an account with a trading platform or brokerage.
You can use the chart below to track the performance of the FTSE 100:
How do FTSE 100 ETFs work?
When you buy an FTSE 100 ETF, you are not investing directly in the companies in the index. Most FTSE 100 ETFs will hold shares in the companies in the index, but you won’t yourself by just buying the ETF.
However, the ETFs performance will track closely with the performance of the stocks in the index. For example, if the FTSE 100 increases in value by 2%, your ETF should also increase close to 2%.
To invest in an ETF, you’ll generally need to pay a fee of around 0.07% to 0.25% each year, as well as any trading commissions charged by the broker.
Types of ETF
Most FTSE 100 ETFs will fully track the performance of the FTSE 100, meaning the fund is weighted more towards the companies with higher market capitalization. However, there are some ETFs such as the db X-Trackers FTSE 100 Equal Weight UCITS ETF (XFEW) which invests in the companies in the index equally. This means the performance of smaller companies will have a larger impact on the ETF, relative to their size.
Short ETFs. There are a number of short FTSE 100 ETFs, which effectively bet against the performance of the index. If the FTSE 100 goes down, the value of a short ETF should go up. Learn more about shorting stocks (or “short-selling”) in our guide.
Leveraged ETFs. Leveraged ETFs multiply the gains and losses of the index, meaning you’ll get a higher or lower return relative to the size of your investment. You’re effectively borrowing extra capital to potentially increase your returns. For example, if you invest £1,000 in a FTSE 100 ETF with 10x leverage and it goes up 5%, you’d make £500 instead of £50. However, the same would apply to losses.
FTSE 100 ETFs
Fund
Currency
Ticker
Fee (TER p.a.)
iShares Core FTSE 100 UCITS ETF (Dist)
GBP
ISF
0.07%
iShares Core FTSE 100 UCITS ETF GBP (Acc)
GBP
CUKX
0.07%
Invesco FTSE 100 UCITS ETF
GBP
S100
0.09%
Xtrackers FTSE 100 UCITS ETF 1C
GBP
XDUK
0.09%
Xtrackers FTSE 100 UCITS ETF Income 1D
GBP
XUKX
0.09%
Vanguard FTSE 100 UCITS ETF (GBP) Accumulating
GBP
VUKG
0.09%
Vanguard FTSE 100 UCITS ETF Distributing
GBP
VUKE
0.09%
Lyxor FTSE 100 UCITS ETF C-GBP
GBP
L100
0.14%
Lyxor FTSE 100 UCITS ETF D-GBP
GBP
100D
0.14%
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-dis
GBP
UB03
0.20%
Amundi ETF FTSE 100 UCITS ETF GBP
GBP
FT1K
0.25%
List of companies in the FTSE 100
3i
III
Financial Services
Admiral Group
ADM
Nonlife Insurance
Anglo American plc
AAL
Mining
Antofagasta
ANTO
Mining
Ashtead Group
AHT
Support Services
Associated British Foods
ABF
Food Producers
AstraZeneca
AZN
Pharmaceuticals & Biotechnology
Auto Trader Group
AUTO
Media
Aveva
AVV
Software & Computer Services
Aviva
AV.
Life Insurance
BAE Systems
BA.
Aerospace & Defence
Barclays
BARC
Banks
Barratt Developments
BDEV
Household Goods & Home Construction
Berkeley Group Holdings
BKG
Household Goods & Home Construction
BHP
BHP
Mining
BP
BP.
Oil & Gas Producers
British American Tobacco
BATS
Tobacco
British Land
BLND
Real Estate Investment Trusts
BT Group
BT.A
Fixed Line Telecommunications
Bunzl
BNZL
Support Services
Burberry
BRBY
Personal Goods
Carnival Corporation & plc
CCL
Travel & Leisure
Centrica
CNA
Gas, Water & Multi-utilities
Coca-Cola HBC
CCH
Beverages
Compass Group
CPG
Support Services
CRH plc
CRH
Construction & Materials
Croda International
CRDA
Chemicals
DCC plc
DCC
Support Services
Diageo
DGE
Beverages
EasyJet
EZJ
Travel & Leisure
Evraz
EVR
Industrial Metals & Mining
Experian
EXPN
Support Services
Ferguson plc
FERG
Support Services
Flutter Entertainment
FLTR
Travel & Leisure
GlaxoSmithKline
GSK
Pharmaceuticals & Biotechnology
Glencore
GLEN
Mining
Halma
HLMA
Electronic & Electrical Equipment
Hargreaves Lansdown
HL.
Financial Services
Hikma Pharmaceuticals
HIK
Pharmaceuticals & Biotechnology
Imperial Brands
IMB
Tobacco
Informa
INF
Media
InterContinental Hotels Group
IHG
Travel & Leisure
International Airlines Group
IAG
Travel & Leisure
Intertek
ITRK
Support Services
ITV plc
ITV
Media
JD Sports
JD.
General Retailers
Johnson Matthey
JMAT
Chemicals
Just Eat Takeaway
JET
Software and Computer Services
Kingfisher plc
KGF
General Retailers
Land Securities
LAND
Real Estate Investment Trusts
Legal & General
LGEN
Life Insurance
Lloyds Banking Group
LLOY
Banks
London Stock Exchange Group
LSE
Financial Services
M&G
MNG
Asset Managers
Meggitt
MGGT
Aerospace & Defence
Melrose Industries
MRO
Automobiles & Parts
Mondi
MNDI
Forestry & Paper
Morrisons
MRW
Food & Drug Retailers
National Grid plc
NG.
Gas, Water & Multi-utilities
Next plc
NXT
General Retailers
NMC Health
NMC
Health Care Equipment & Services
Ocado
OCDO
Food & Drug Retailers
Pearson plc
PSON
Media
Persimmon plc
PSN
Household Goods & Home Construction
Phoenix Group
PHNX
Life Insurance
Polymetal International
POLY
Precious Metals and Mining
Prudential plc
PRU
Life Insurance
Reckitt Benckiser
RB.
Household Goods & Home Construction
RELX
REL
Media
Rentokil Initial
RTO
Support Services
Rio Tinto Group
RIO
Mining
Rightmove
RMV
Media
Rolls-Royce Holdings
RR.
Aerospace & Defence
Royal Bank of Scotland Group
RBS
Banks
Royal Dutch Shell
RDSA
Oil & Gas Producers
RSA Insurance Group
RSA
Nonlife Insurance
Sage Group
SGE
Software & Computer Services
Sainsbury’s
SBRY
Food & Drug Retailers
Schroders
SDR
Financial Services
Scottish Mortgage Investment Trust
SMT
Equity Investment Instruments
Segro
SGRO
Real Estate Investment Trusts
Severn Trent
SVT
Gas, Water & Multi-utilities
Smith & Nephew
SN.
Health Care Equipment & Services
DS Smith
SMDS
General Industrials
Smiths Group
SMIN
General Industrials
Smurfit Kappa
SKG
General Industrials
Spirax-Sarco Engineering
SPX
Industrial Engineering
SSE plc
SSE
Electricity
Standard Chartered
STAN
Banks
Standard Life Aberdeen
SLA
Financial Services
St. James’s Place plc
STJ
Life Insurance
Taylor Wimpey
TW.
Household Goods & Home Construction
Tesco
TSCO
Food & Drug Retailers
TUI Group
TUI
Travel & Leisure
Unilever
ULVR
Personal Goods
United Utilities
UU.
Gas, Water & Multi-utilities
Vodafone Group
VOD
Mobile Telecommunications
Whitbread
WTB
Retail Hospitality
WPP plc
WPP
Media
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
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