Here are some of the best-performing FTSE 100 funds according to JustETF:
| Icon | Fund | 5-year performance | 1-year performance (to March 2023) | Link to invest |
|---|---|---|---|---|
 | Vanguard FTSE 100 (VUKE) | 32.37% | 14.59% | Invest with XTBCapital at risk |
 | iShares Core FTSE 100 (CUKX) | 31.75% | 14.57% | Invest with XTBCapital at risk |
 | Invesco FTSE 100 (S100) | 30.23% | 14.42% | Invest with XTBCapital at risk |
 | HSBC FTSE 100 (HUKX) | 31.54% | 14.03% | Invest with SaxoCapital at risk |
 | Lyxor FTSE 100 (100D) | 30.59% | 14.26% | Invest with XTBCapital at risk |
 | Xtrackers FTSE 100 (XDUK) | 31.66% | 14.36% | Capital at risk |
Even if you’re new to investing, you’ve probably heard of the FTSE 100 – the UK’s best-known stock market index. Find out why it’s popular with investors in the UK and worldwide, which stocks make up the FTSE 100, and how you can invest in it.
The Financial Times Stock Exchange 100 (FTSE 100 for short, which is pronounced “footsy”) is a stock market index comprising the 100 largest companies on the London Stock Exchange (by market capitalisation). This includes companies such as Barclays, BP, HSBC and Sainsbury’s.
You may hear investment experts talk about investing in the FTSE 100, so it’s easy to make the assumption that it is an investment fund. But it’s actually an index. Think of an index as a hypothetical portfolio, designed to monitor the performance of the assets it contains (in this case, stocks in large UK companies). As such, you can’t actually invest directly in the FTSE 100.
However, you can gain exposure to FTSE 100 companies by either buying shares in each individual company or by investing in a fund – such as an exchange traded fund (ETF) – that tracks the performance of the stocks in the FTSE 100.
These trading apps allow you to invest in companies within the FTSE 100 directly or to invest in FTSE 100 funds/ETFs.
Investing in the FTSE 100 tends to be regarded as a relatively safe and low-risk bet – insofar as investing is ever “safe and low-risk”. No investment is risk-free.
Because it’s made up of the UK’s biggest companies, the FTSE 100 tends to include businesses that have been around a while. Companies that have a track record of solid performance. This might mean they’re not the most exciting (or potentially most rewarding) companies to invest in, but the chances of them crashing are also lower than average. All of this makes the FTSE 100 a decent bet if you want to manage your risk levels. Plus, if you opt to buy shares, many FTSE 100 stocks pay dividends.
As we always bang on about, though, it’s essential to have a diverse investment portfolio. So, while a FTSE 100 tracker fund will likely feature in many investors’ portfolios, there’s no need to put all your eggs in one basket. There’s nothing stopping you from investing in the FTSE 100, while also bolstering your portfolio with an even lower-risk investment (such as bonds) and a selection of higher-risk, higher-reward assets.
There are a couple of ways to invest in the FTSE 100:
The FTSE 100 is made up of some really exciting companies, including Burberry, Coca-Cola and Ocado. Because of its appeal, there are lots of funds and ETFs that track the index.
Investors can also choose to invest in all the individual stocks themselves, but this would take a lot of time, especially as the index changes regularly. You would need to keep tabs on which stocks have moved out of the index, which have moved in, and whether any weightings need to be changed. An index fund would be a great deal easier and could save you money on commission too.
Need to know: If your account is inactive for more than 24 months, you will be charged a rolling fee for account inactivity.
Read our review of IG.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
You can use the chart below to track the performance of the FTSE 100:
The drop-down below shows a complete list of companies in the FTSE 100 as of 14 September 2022, listed alphabetically. Companies in the FTSE 100 are switched up to 4 times a year, to ensure it consists of the biggest 100 UK firms.
To give you an idea of the likely returns of investing in the FTSE 100, below we’ve shown the 1-, 3- and 5-year price returns of the index, starting from 2016. Price returns are directly linked to the index value and don’t include any dividends you might receive if you invested directly in stocks in FTSE 100 companies. These returns illustrate the importance of investing for the long term, as the value of the index has experienced short-term fluctuations over this period.
| Year | Index value* | 1-year return | 3-year return | 5-year return |
|---|---|---|---|---|
| 2021 | 7384.54 | 14.3% | 9.8% | 3.4% |
| 2020 | 6460.52 | -14.3% | -16.0% | 3.5% |
| 2019 | 7542.44 | 12.1% | 5.6% | 14.9% |
| 2018 | 6728.13 | -12.5% | 7.8% | -0.3% |
| 2017 | 7687.77 | 7.6% | 17.1% | 30.3% |
| 2016 | 7142.83 | 14.4% | 5.8% | 28.2% |
*At the end of the year
The FTSE 100 contains some of the best-known British brands, such as Lloyds, Rightmove and Rolls-Royce. You can invest in all 100 stocks individually if you have the time, but it could be more expensive this way. There are index funds and ETFs that track the indices, which could be a more cost-effective way to get exposure to these stocks. Make sure you consider the fees involved and that your broker lets you invest in stocks on the London Stock Exchange.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The gulf between the amounts received by men vs women from government-backed startup loans has widened, despite calls for more funding for women entrepreneurs.
We take a closer look at two of the digital banking brands leading the way in the UK. Compare Kroo and Monzo in our side by side guide.
Everything we know about the Rubrik IPO, plus information on how to buy shares.
Is the UK leaving £250 billion in growth on the table? Our free report shows how female entrepreneurs aren’t getting the same startup funding as men.
We look at the latest statistics on global trading app Robinhood, including the number of users, revenue and profitability.
From financial advisers to accountants – if you need help with your personal finances, here’s who to talk to about what.
Discover how you can build wealth by investing £20,000 and explore some of the top strategies for investing your money.
The multi-currency account could be a cost-effective option for anyone who is going abroad, provided you don’t plan to withdraw lots of cash.
According to the latest figures, a single person living in London would need a gross salary of £37,000 to be financially stable.
More than 13 million Brits plan to open an ISA after the new financial year starts on 6 April, according to a new Finder survey.
