Best for
ETFs
FTSE 250 vs S&P 500
Find out the key differences between the FTSE 250 and the S&P 500 as well as some key points to consider before investing.
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.
What’s the difference between the FTSE 250 and the S&P 500?
The S&P 500 and the FTSE 250 are collections of stocks from their respective exchanges – in the FTSE 250’s case, it’s a collection of stocks on the London Stock Exchange and in the S&P 500’s case, it’s a collection of US stocks.
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 – 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 – the top 100 stocks make up the FTSE 100 and the following 250 make up the FTSE 250.
List of top 10 stocks from each
FTSE 250
- Centrica
- Tritax
- Unite Group
- Harbour energy
- Convatec
- Easyjet
- F&C Investment
- Weir Group
- RIT Capital Partners
- TUI
S&P 500
- Apple
- Microsoft
- Amazon
- Meta
- Alphabet Inc A (Google)
- Apple
- Johnson & Johnson
- Berkshire Hathaway
- Visa
- Procter & Gamble
FTSE 250 vs S&P 500: Which is bigger?
The S&P 500 is made up of 500 stocks, while the FTSE 250 is just 250 stocks. The overall market capitalisation of the S&P 500 is significantly higher than that of the FTSE 250 because a lot of the companies in the FTSE 250 are smaller. The market cap of the S&P 500 is $36.7 trillion (£29.74 trillion), compared with the market cap of the FTSE 250, which is £419 billion.
FTSE 250 vs S&P 500: Which is worth more?
As we mentioned above, the S&P 500 is worth more than 70 times the value of the FTSE 250. It holds twice the number of stocks.
FTSE 250 vs S&P 500: Which is more diversified?
The S&P 500 has a better diversified set of stocks. It has a lot of technology stocks, making up around 15% of the index, but it’s well spread across a number of sectors. The FTSE 250 has a number of financial companies and a small number of health care, utilities and communication stocks.
If you’re looking for diversification, you might decide to invest in both indices. This gives you additional global exposure.
FTSE250 vs S&P 500 chart
Platforms where you can invest in the FTSE 250 and the S&P 500
These trading apps allow you to invest in companies within the indices directly or to invest in funds or ETFs.
Best for
0% commission
Best for
Beginners
Best for
Index funds
What’s the best FTSE 250 and S&P 500 index fund?
Here are some of the best performing FTSE 250 and S&P 500 funds according to justETF:
| Icon | Fund | 5-year performance | 1-year performance (to October 2023) | Link to invest |
|---|---|---|---|---|
 | Vanguard FTSE 250 UCITS ETF Distributing (VMID) | 1.77% | -0.53% | Invest with FreetradeCapital at risk |
 | Invesco FTSE 250 UCITS ETF (S250) | 1.20% | -0.66% | Invest with IGCapital at risk |
 | Xtrackers FTSE 250 UCITS ETF 1D (XMCX) | 1.08% | -0.67% | Invest with IGCapital at risk |
 | HSBC FTSE 250 UCITS ETF GBP (HMCX) | 0.22% | -0.74% | Invest with IGCapital at risk |
 | iShares FTSE 250 UCITS ETF (MIDD) | 0.16% | -0.78% | Invest with eToroCapital at risk |
| Icon | Fund | 5-year performance | 1-year performance (to October 2023) | Link to invest |
|---|---|---|---|---|
| Invesco S&P 500 (SPXP) | 70.17% | 10.90% | Invest with IGCapital at risk |
| Xtrackers S&P 500 Swap (XSPX) | 69.98% | 10.83% | Invest with IGCapital at risk |
| HSBC S&P 500 (HSPX) | 68.59% | 10.87% | Invest with IGCapital at risk |
| Vanguard S&P 500 (VUSA) | 68.24% | 10.73% | Invest with FreetradeCapital at risk |
| iShares Core S&P 500 (CSP1) | 68.20% | 10.73% | Invest with eToroCapital at risk |
 | SPDR S&P 500 ETF (SPX5) | 67.96% | 10.70% | 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 S&P 500?
Finder expert Zoe Stabler answers
The S&P 500 has performed better historically, but that doesn’t mean that it’s going to do well in the future. But why choose? Investing in both the FTSE 250 and the S&P 500 would give you diversification across lots of sectors as well as let you invest in lots of different-sized companies across the globe.
If you do wish to choose between them, choose one that’s got exposure to the types of stocks you’re interested in – the FTSE 250 has a lot of defensive stocks, like consumer staples and financial services, while the S&P 500 has a lot of technology, industrial and healthcare stocks.
What are the top holdings in the FTSE 250 and S&P 500?
| FTSE 250 | S&P 500 | ||||
|---|---|---|---|---|---|
 | Centrica |  | Apple | ||
 | Tritax |  | Microsoft | ||
 | Unite Group |  | Amazon | ||
 | Harbour Energy |  | Facebook Inc A | ||
 | Convatec |  | Alphabet Inc A (Google) |
How to invest in the FTSE 250 and S&P 500
- Find an FTSE 250 or S&P 500 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 S&P 500 trading platforms
Table: sorted by promoted deals first
These trading apps allow you to invest in companies within the indices directly or to invest in funds and ETFs.
Bottom line
The FTSE 250 and the S&P 500 are both popular stock market indices to invest in. Investors typically choose to invest in an index with an index fund. These are designed to reflect the performance of the index, either by replicating it or by choosing similar stocks, or a mixture of the two.
Whichever you choose, you’ll get a well-diversified range of shares across a lot of sectors and investment types.
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.
More guides on Finder
-
How to buy Kyocera Corporation shares
Ever wondered how to buy shares in Kyocera? We explain how and compare a range of providers that can give you access to many brands, including Kyocera.
-
How to buy General Finance shares
Ever wondered how to buy shares in General Finance? We explain how and compare a range of providers that can give you access to many brands, including General Finance.
-
How to buy Baringsorate Investors shares
Ever wondered how to buy shares in Baringsorate Investors? We explain how and compare a range of providers that can give you access to many brands, including Baringsorate Investors.
-
How to buy 1st Source shares
Ever wondered how to buy shares in 1st Source? We explain how and compare a range of providers that can give you access to many brands, including 1st Source.
-
How to buy Eargo shares
Ever wondered how to buy shares in Eargo? We explain how and compare a range of providers that can give you access to many brands, including Eargo.
-
How to buy MediaAlpha shares
Ever wondered how to buy shares in MediaAlpha? We explain how and compare a range of providers that can give you access to many brands, including MediaAlpha.
-
How to buy Casper Sleep shares
Ever wondered how to buy shares in Casper Sleep? We explain how and compare a range of providers that can give you access to many brands, including Casper Sleep.
-
How to buy X Financial shares
Ever wondered how to buy shares in X Financial? We explain how and compare a range of providers that can give you access to many brands, including X Financial.
-
How to buy Capital City Bank Group shares
Ever wondered how to buy shares in Capital City Bank Group? We explain how and compare a range of providers that can give you access to many brands, including Capital City Bank Group.
-
How to buy Genpact shares
Ever wondered how to buy shares in Genpact? We explain how and compare a range of providers that can give you access to many brands, including Genpact.