Our experts keep on top of the markets to bring you the latest on what's shaking up stock prices.
24 November 2023: The FTSE 100 showed signs of positivity with energy stocks powering a move in the right direction but it's still not much to get excited about with just a 0.2% rise.
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 index, and how to start investing in the FTSE 100.
Finder Award
Finder Award
The Financial Times Stock Exchange 100 (FTSE 100 for short, sometimes referred to as the “footsie”) 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.
Yes, but not directly. Many experts talk about investing in the FTSE 100, but it’s not actually an investment fund, it’s an index. Think of an index as a hypothetical portfolio, designed to monitor the performance of the assets it contains (in this case, large-cap UK stocks). As such, you can’t actually invest directly in the FTSE 100.
However, you can gain exposure to the whole FTSE 100 list and companies in the index by either buying shares in each individual firm or by investing in a fund – such as an exchange-traded fund (ETF) or index fund – that tracks the performance of the FTSE 100 index.
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, AstraZeneca and Abrdn. 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, because the index changes regularly. You’d 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 much easier and could save you money on trading commissions 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:
Here’s a list of the top constituents in the FTSE 100 by market cap. These top FTSE shares will shift regularly as the market moves. If you were to invest in a FTSE 100 fund or ETF, the bulk of your investment will go to these shares:
This table below shows you all the FTSE 100 shares that have recently seen a big change in trading volume. This refers to the total number of shares being bought or sold over a monthly period.
| Rank | Code | FTSE 100 | Monthly change in trading volume |
|---|---|---|---|
| 1 | AAF | Airtel Africa Plc | 177.51% |
| 2 | ANTO | Antofagasta PLC | 32.05% |
| 3 | SKG | Smurfit Kappa Group PLC | 29.66% |
| 4 | BRBY | Burberry Group PLC | 27.78% |
| 5 | DGE | Diageo PLC | 27.68% |
| 6 | MNDI | Mondi PLC | 24.12% |
| 7 | IMB | Imperial Brands PLC | 8.64% |
| 8 | RIO | Rio Tinto PLC | 2.44% |
| 9 | ABDN | Abrdn PLC | 1.67% |
| 10 | KGF | Kingfisher PLC | 4.52% |
| 11 | ULVR | Unilever PLC | 5.46% |
| 12 | LAND | Land Securities Group PLC | 25.69% |
| 13 | BME | B&M European Value Retail SA | 26.35% |
| 14 | RKT | Reckitt Benckiser Group PLC | 33.15% |
| 15 | HSBA | HSBC Holdings PLC | 35.42% |
| 16 | SVT | Severn Trent PLC | 40.57% |
| 17 | STAN | Standard Chartered PLC | 47.91% |
A FTSE 100 ETF is traded on stock exchanges. So unlike funds, the price can fluctuate throughout trading hours. Generally, ETFs are cheaper to run than funds (which is why they have low ongoing fees).
An ETF tracking the FTSE 100 also tends to be cheap because it doesn’t require much oversight. The FTSE 100 index is maintained by FTSE Russell and it’s reviewed each quarter. FTSE 100 ETFs should automatically adjust to reflect any changes.
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.
The ETF’s 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%. Your fund returns may be slightly less than the index price returns after investment charges are deducted.
Here’s a quick summary of the main types of FTSE 100 ETFs you’ll come across:
Below are some of the most popular FTSE 100 exchange-traded funds available. They’re ranked by ongoing costs (this should be as low as possible considering each one mirrors the same investments). Just search the stock ticker on your share dealing account, keep in mind not every platform will have every FTSE 100 ETF.
| Fund | Currency | Ticker | Fee (TER p.a.) |
|---|---|---|---|
| HSBC FTSE 100 UCITS ETF GBP | GBP | HUKX | 0.07% |
| 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% |
Here are some of the best-performing FTSE 100 funds according to JustETF:
| Icon | Fund | 5-year performance | 1-year performance (to 7 November 2023) | Link to invest |
|---|---|---|---|---|
 | HSBC FTSE 100 (HUKX) | 23.63% | 7.07% | Invest with IGCapital at risk |
 | iShares Core FTSE 100 (CUKX) | 23.57% | 7.01% | Invest with eToroCapital at risk |
 | Vanguard FTSE 100 (VUKE) | 23.50% | 7.07% | Invest with XTBCapital at risk |
 | Xtrackers FTSE 100 (XDUK) | 23.33% | 7.09% | Invest with IGCapital at risk |
 | Lyxor FTSE 100 (100D) | 22.65% | 6.87% | Invest with IGCapital at risk |
 | Invesco FTSE 100 (S100) | 22.56% | 6.82% | Invest with IGCapital at risk |
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 these firms crashing are also lower than average. All of this makes the FTSE 100 a decent option if you want to manage your risk. 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 (like US tech stocks).
The FTSE 100 contains some of the best-known British brands, such as Lloyds, Tesco 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 FTSE 100, which could be a more cost-effective way to get exposure to these stocks. Now that you know how to invest in the FTSE 100 index, make sure you consider the fees involved and that your broker lets you invest in 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.
This live chart compares the current dip in the FTSE 100 with the 5 worst market crashes of the last 50 years.
The worst market crash of the last 50 years was the financial crisis that lasted between 2007 and 2009. The lowest point came after 344 days of trading, when the market had fallen by 46% from the point when the crash first started.
All the content may be republished with a link to this page
Press enquiries
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.
Ever wondered how to buy shares in Lowe’s Companies? We explain how and compare a range of providers that can give you access to many brands, including Lowe’s Companies.
Ever wondered how to buy shares in John Wiley & Sons? We explain how and compare a range of providers that can give you access to many brands, including John Wiley & Sons.
Ever wondered how to buy shares in DraftKings? We explain how and compare a range of providers that can give you access to many brands, including DraftKings.
Ever wondered how to buy shares in SpartanNash Company? We explain how and compare a range of providers that can give you access to many brands, including SpartanNash Company.
Ever wondered how to invest in XUKX ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
Ever wondered how to invest in SJPA ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
Ever wondered how to invest in LCJG ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
Ever wondered how to invest in FTAL ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
Ever wondered how to invest in FLGB ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
