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The FTSE 100 and FTSE 250 are both stock market indices. The FTSE 100 is the top 100 stocks on the London Stock Exchange, while the FTSE 250 is the next 250 stocks on the indices. Choosing which to invest in depends on how much diversification you’re looking for. You’ll get more diversification with the FTSE 250 but a more concentrated set of high-market cap stocks with the FTSE 100. We’ve put these indices head to head to work out which is the better one to invest in.
What’s the difference between the FTSE 100 and the FTSE 250?
The FTSE 100 is the top 100 stocks on the London Stock Exchange ordered by market capitalisation, while the FTSE 250 is the following 250. There’s also an FTSE 350, which is a combination of the 2 indices. The FTSE 100 and the FTSE 250 are designed to represent the overall performance of the London Stock Exchange, but as they have different concentrations of stocks, they perform differently. Typically, when referencing the FTSE, people are referring to the FTSE 100, as it’s the most commonly known index.
List of top 10 stocks from each
There might be some crossover between stocks on the FTSE 100 and FTSE 250, mainly because the market capitalisation of the companies is constantly changing, so the bottom end of the FTSE 100 and the first few stocks on the FTSE 250 are often switching between the 2 indices.
FTSE 100
- AstraZeneca
- Unilever
- HSBC Holdings
- Diageo
- GlaxoSmithKline
- British American Tobacco
- BP
- Royal Dutch Shell A
- Rio Tinto
- Reckitt Benckiser
FTSE 250
- Centrica
- Tritax
- Unite Group
- Harbour energy
- Convatec
- Easyjet
- F&C Investment
- Weir Group
- RIT Capital Partners
- TUI
FTSE 100 vs FTSE 250: Which is bigger?
This depends on how you’d define bigger. If you’re talking about the sheer number of stocks, then the FTSE 250 is bigger than the FTSE 100 as it has 150 more stocks on it. If you want to compare based on the size of the companies that make each one up, you’d compare with market capitalisation. When you do this, the FTSE 100 is worth more, at around £1.6 trillion compared with the FTSE 250’s market cap of just £419 billion.
FTSE 100 vs FTSE 250: Which is worth more?
The FTSE 100 and FTSE 250 are chosen based on the market capitalisation of the companies that make them up, so those with higher market caps are in the FTSE 100. This means that despite having fewer stocks, the FTSE 100 is worth more than the FTSE 250, with a market cap of 3.8 times that of the FTSE 250.
FTSE 100 vs FTSE 250: Which is more diversified?
The FTSE 100 has a more even sector split than the FTSE 250, but it’s still very heavily weighted to financial companies and consumer staples companies. The FTSE 250 is 35% financial companies and 21% consumer discretionary companies, so it might not get you quite the diversification you’re after.
FTSE 100 vs FTSE 250 chart
Platforms where you can invest in the FTSE 100 and the FTSE 250
These trading apps allow you to invest in companies within each index directly or to invest in funds and ETFs.
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Index funds
What’s the best FTSE index fund?
Here are some of the best performing FTSE 250 and FTSE 100 funds according to justETF:
| Icon | Fund | 5-year growth | 1-year growth (to February 2023) | Link to invest |
|---|---|---|---|---|
 | Vanguard FTSE 250 UCITS ETF Distributing (VMID) | 15.11% | -5.78% | Invest with FreetradeCapital at risk |
 | Invesco FTSE 250 UCITS ETF (S250) | 15.42% | -5.08% | Invest with IGCapital at risk |
 | iShares FTSE 250 UCITS ETF (MIDD) | 14.33% | -5.30% | Invest with eToroCapital at risk |
 | HSBC FTSE 250 UCITS ETF GBP (HMCX) | 14.31% | -5.30% | Invest with IGCapital at risk |
 | Xtrackers FTSE 250 UCITS ETF 1D (XMCX) | 14.42% | -5.92% | Invest with IGCapital at risk |
| Icon | Fund | 5-year performance | 1-year performance (to February 2023) | Link to invest |
|---|---|---|---|---|
| Vanguard FTSE 100 (VUKE) | 32.56% | 8.76% | Invest with FreetradeCapital at risk |
| iShares Core FTSE 100 (CUKX) | 32.27% | 8.4% | Invest with eToroCapital at risk |
| Invesco FTSE 100 (S100) | 31.71% | 8.87% | Invest with IGCapital at risk |
| HSBC FTSE 100 (HUKX) | 33.07% | 8.39% | Invest with IGCapital at risk |
 | Lyxor FTSE 100 (100D) | 32.07% | 8.19% | Invest with IGCapital at risk |
| Xtrackers FTSE 100 (XDUK) | 15.34% | 1.81% | Invest with IGCapital at risk |
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.
Is it better to invest in the FTSE 250 or the FTSE 100?
Finder expert Zoe Stabler answers
Typically, the FTSE 100 is “better” because it’s got the highest stocks by market cap in the London Stock Exchange, but the FTSE 250 has more stocks in it and has historically had slightly better growth – so as an investment, it really depends on what you’re looking for.
There’s also no reason why you can’t invest in both. You’d get more diversification as you’d be investing in 350 companies. You’d do this by investing in an FTSE 350 index fund.
What are the top holdings in the FTSE 250 and FTSE 100?
| FTSE 250 | FTSE 100 | ||||
|---|---|---|---|---|---|
 | Centrica |  | AstraZeneca | ||
 | Tritax |  | Unilever | ||
 | Unite Group | | HSBC Holdings | ||
 | Harbour Energy |  | Diageo | ||
 | Convatec |  | GlaxoSmithKline |
How to invest in the FTSE 250 and FTSE 100
- Find an FTSE 250 or FTSE 100 ETF, index fund or mutual fund. Some index funds track the performance of all stocks on the index, whereas others only track a certain number of stocks or are weighted more towards specific stocks. You should select the fund that best suits your investment goals.
- Open a share-trading account. In order to invest in the funds, you’ll need to open a trading account with a broker or platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table below let you invest in US shares. We’ve listed some index funds below that are listed on the London Stock Exchange (LSE)
- Deposit funds. You’ll need to deposit funds into your account to begin trading. Some brokers may charge you deposit fees, or you may need to pay a forex fee in order for your pounds to be converted into US dollars.
- Buy the index fund. Once your money has been deposited, you can then buy the index fund. You’ll generally pay a small annual fee to invest in an ETF or index fund.
Best trading platform for index funds: Saxo
We chose Saxo as our top pick because of the following:- Invest in over 19,000 stocks, funds and investment trusts.
- Use its award-winning trading platforms.
- Customer support available 24 hours a day.
Need to know: Opening a Saxo share dealing account requires a high minimum investment (£500).
Read our review of Saxo.
Compare FTSE 250 and FTSE 100 trading platforms
Table: sorted by promoted deals first
These trading apps allow you to invest in companies within the indexes directly or to invest in funds and ETFs.
Bottom line
The FTSE 100 and FTSE 250 are both stock market indices that are designed to represent the UK stock market as a whole. Unlike their US counterparts, such as the S&P 500 and the NASDAQ-100, which are very tech heavy, these indices contain mainly consumer staples and financial companies. Because of this, the FTSE 100 and FTSE 250 wouldn’t be the most exciting investments, but they tend to be more stable.
Frequently asked questions
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.
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