FTSE 100 vs S&P 500

Find out the key differences between the FTSE 100 and the S&P 500 index, plus some important points to consider before investing.

See the top company holdings Top holdings for each fund
FTSE 100 vs S&P 500 performance Compare historical data

The S&P 500 and FTSE 100 are major stock market indices. While the S&P 500 consists of 500 of the largest stocks from various US exchanges, the FTSE 100 includes the top 100 stocks from the London Stock Exchange. There are significant differences between them.

For a start, if you invest in the S&P 500, your money is invested in a dollar-denominated fund (unless you use a hedged version). In addition, the S&P 500’s juggernauts are overwhelmingly fast-growing tech stocks. Meanwhile, the FTSE 100 is weighted towards slow-and-steady companies in sectors like Energy, Industrials and Financials.

We look at more differences between the S&P 500 and FTSE 100 below.

What’s the difference between the S&P and the FTSE?

The S&P 500 and FTSE 100 are both stock market indices containing some of the biggest companies in the US and the UK. The FTSE 100 is simply the 100 biggest UK shares by market capitalisation. The S&P 500 is slightly different, market cap plays an important role but there’s other criteria a stock must meet to make it onto the index.

S&P 500

  • Apple
  • Microsoft
  • Amazon
  • Meta
  • Alphabet Inc A (Google)
  • Johnson & Johnson
  • Berkshire Hathaway
  • Nvidia
  • Procter & Gamble
  • Tesla

FTSE 100

  • AstraZeneca
  • Unilever
  • HSBC Holdings
  • Diageo
  • GlaxoSmithKline
  • British American Tobacco
  • BP
  • Shell
  • Rio Tinto
  • Lloyds Banking Group

Compare brokers to invest now

What to consider when comparing the FTSE 100 and the S&P 500

When looking at the S&P 500 and FTSE 100, it’s important to consider various factors. Currency fluctuations play a role, as a stronger US dollar can benefit investments in the S&P 500 when converted to pounds, while a stronger pound can have the opposite effect. Investors can mitigate this risk by using currency hedging strategies.

Another aspect to consider is income. Holding an index fund covering either of these indices will lead to dividend payments, but the FTSE 100 has a current yield of 3.9% whereas the S&P 500 pays a lower yield of 1.1%.

Additionally, the price-to-earnings (P/E) ratios differ, with the FTSE 100 usually having a much lower average P/E ratio (around 10), while the S&P 500 tends to trade at higher multiples (around 20).

How do currency fluctuations impact investments in the S&P 500 and the FTSE 100?

If the US dollar gets stronger compared to the pound, it means that investments in the S&P 500 may be worth more when converted to pounds. On the other hand, if the pound gets stronger, it can make investments in the S&P 500 less valuable for British investors.

It’s important to realise that when investing in companies abroad, you’re exposing yourself to currency risks as well as equity risks.

However, there are ways to isolate yourself from these risks while still getting exposure to the S&P 500. For example, iShares S&P 500 GBP Hedged UCITS ETF uses currency hedging strategies to cancel out the effect of currency movements on your returns.

FTSE 100 vs S&P 500: Which is bigger?

The S&P 500 contains 500 stocks, while the FTSE 100 is made up of just 100.

The FTSE 100 is also a lot smaller than the S&P 500 in terms of market capitalisation – (as of July 2024) the FTSE 100 has a market cap of just over £2 trillion, while the S&P’s market cap is around $45 trillion (about £35 trillion). That makes the S&P 500 about 17 times the size of the FTSE 100 in terms of market cap.

FTSE 100 vs S&P 500: Concentration

There are 503 stocks in the S&P 500 and 102 stocks in the FTSE 100 — this is because of the different classes of shares that some companies have. When it comes to concentration, even though the S&P 500 is very top-heavy due to the mega-cap stocks weighted at the top, you might be suprised about the results.

The top 10 stocks in the S&P 500 make up just over 30% of the total index. Whereas for the FTSE 100, the top 10 shares make up around 47% of the total index. There, the FTSE 100 could be viewed as a more concentrated index.

The top 10 stocks in the S&P 500 (also listed below) make up just short of 30% of it.

FTSE 100 vs S&P 500: Stock quality

Judging stocks on quality is quite a subjective form of analysis. The top stocks in the FTSE 100 are vastly different from the top ones in the S&P 500, and the rest of each index also largely differs. The S&P 500 is made up of a lot of technology stocks, whereas the FTSE 100 contains only a handul.

The FTSE 100 has more stocks that could be considered “defensive”, meaning they may perform well during a recession or a downturn. Because, setors like Consumer Staples, Energy and Utilities can have pricing power or involve essential spending. However, the S&P 500 also now has its own fair share of blue-chip stocks. When it comes to stock quality, it depends what you’re looking for as an investor.

FTSE 100 vs S&P 500: Which is more diversified?

It depends on what sort of diversity you want. Obviously, the S&P 500 contains more stocks than the FTSE 100, but this doesn’t neccessarily make it more diverse.

A number of US companies in the S&P 500 have international operations, but so too do business in the FTSE 100. Both indices contain stocks across a wide range of sectors. The S&P 500 is quite concentrated with around 30% in Information Technology stocks, but the FTSE 100 is thinly spread at the bottom with only around 1% in Technology and 1% in Telecommuncations.

Platforms where you can invest in the FTSE 100 and the S&P 500

These trading apps allow you to invest in companies within each index directly or to invest in funds/ETFs (exchange-traded funds).

Best for 0% commission stocks
eToro Free Stocks logo
Finder Award
Go to site
Capital at risk. Fees apply.
Copy picks from top traders
4.3 ★★★★★
Commission-free trades
Fractional shares
Get dividend payments
Best for uninvested cash
XTB logo
Go to site
Capital at risk. T&Cs apply.
Earn 5% on uninvested funds
4.4 ★★★★★
Commission-free trades
Fractional shares
5,400+ stocks/ETFs
Best for customer satisfaction
Hargreaves Lansdown Fund and Share Account logo
Finder Award
Go to site
Capital at risk. T&Cs apply.
97% would recommend
4.2 ★★★★★
Free fund trading
Expert insights
Wide range of accounts

S&P and FTSE index funds

Here are some of the most popular S&P 500 and FTSE 100 funds along with their recent performance, according to JustETF:

Fund5-year performance (to Aug. ’24)Link to invest
Invesco S&P 500 (SPXP)Invesco icon94.07%Invest with XTBCapital at risk
Xtrackers S&P 500 Swap (XSPX)DWS Xtrackers icon93.77%Invest with XTBCapital at risk
iShares Core S&P 500 (CSP1)iShares icon91.84%Invest with XTBCapital at risk
HSBC S&P 500 (HSPX)HSBC icon80.38%Invest with XTBCapital at risk
Vanguard S&P 500 (VUSA)Vanguard icon79.29%Invest with XTBCapital at risk
SPDR S&P 500 ETF (SPX5)SPDR icon79.17%Invest with XTBCapital at risk
Fund5-year performance (to Aug. ’24)Link to invest
Xtrackers FTSE 100 (XDUK)Xtrackers icon31.44%Invest with HLCapital at risk
iShares Core FTSE 100 (CUKX)iShares icon31.39%Invest with eToroCapital at risk
Invesco FTSE 100 (S100)Invesco icon30.75%Invest with HLCapital at risk
HSBC FTSE 100 (HUKX)HSBC icon11.99%Invest with XTBCapital at risk
Amundi FTSE 100 (100D)amundi icon11.93%Invest with HLCapital at risk
iShares Core FTSE 100 (Dist)(ISF)iShares icon8.14%Invest with XTBCapital at risk
Vanguard FTSE 100 (VUKE)Vanguard icon8.07%Invest with XTBCapital 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.


A green metals boom could make the FTSE 100 shine

Mark Tovey

Money expert Mark Tovey answers

The FTSE 100 is home to 6 world-class mining companies, meaning it could strike it big in a green metals bull market.

According to metals expert Guillaume Pitron, “Over the next generation, we will consume more minerals than in the last 70,000 years.” That is due to the world’s increasing adoption of resource-hungry “green” technologies. The battery in an electric car, for example, needs lithium, manganese, cobalt, graphite, steel and nickel to run.

In previous commodities bull markets, the FTSE 100 has tended to outperform other indices. In 2022, its focus on commodities paid off as Russia’s invasion of Ukraine caused price shocks in oil, gas, nickel and other raw materials.

By owning FTSE 100 miners like Anglo American, Antofagasta, BHP Group, Fresnillo, Glencore and Rio Tinto, investors can get exposure to a wide range of critical metals. However, commodities markets are viciously cyclical. If global economic growth slows, that could be a major downer for mining companies.

What are the top holdings in the S&P 500 and FTSE 100?

Here are the top holdings of the S&P 500 and the FTSE 100. As you can see, the top 10 stocks in the S&P 500 contains mostly Information Technology companies. Meanwhile, the top stocks of the FTSE 100 are mainly Energy, Financials and Healthcare shares. Keep in mind the largest constiuents of each index can shift regularly.

S&P 500

HoldingIconProportion
Appleicon6.6%
Microsofticon7.3%
Amazonicon3.5%
Meta (Facebook Class A)icon2.1%
Alphabet Inc A (Google)icon2%

FTSE 100

HoldingIconProportion
AstraZenecaicon8.1%
Unilevericon5%
HSBC Holdingsicon6.3%
Diageoicon3.3%
GSKicon3.3%

How to invest in the S&P 500 and FTSE 100

  1. Find an S&P 500 or FTSE 100 index fund. Ideally, look for a fund with low fees, because if each fund is tracking the same index, you should try and minimise your costs where possible.
  2. Open a share-trading account. 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. We’ve included some index funds below that are listed on the London Stock Exchange (LSE).
  3. Deposit funds. You’ll need to deposit funds into your account to begin trading.
  4. Buy the index fund. Once your money has been deposited, you can then buy the index fund. You’ll generally pay a small ongoing fee to invest in an ETF or index fund.

Which index has better stock diversification?

This can be down to interpretation, but here are some of the head to head stats and insights as a broad overview.

S&P 500FTSE 100
Type of stocksLarge cap US equitiesLarge cap UK equities
Number of holdings503102
Top sectorsInformation Technology 29.5%, Healthcare 12.8%, Consumer discretionary 10.3%, Financials 13.1%, Communication Services 8.9%Financials 18.9%, Consumer Staples 16.5%, Healthcare 13.3%, Energy 12.5%, Consumer Discretionary 12.4%
Exposure to global economyHighHigh
Past performanceStrongerWeaker
Availability of ETFWideWide

Compare S&P 500 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/ETFs.

Name Product UKFST Finder Score Min. initial deposit Price per trade Frequent trader rate Platform fees Offer Link
XTB
4.4
★★★★★
£0
£0
£0
£0
Earn up to 5% interest on uninvested cash.
Go to site

Capital at risk

Platform details
OFFER
Freetrade
4.4
★★★★★
£1
£0
N/A
£0
Get a free share worth up to £100 when you sign up and deposit at least £50. T&Cs apply. Capital at risk.
Go to site

Capital at risk

Platform details
InvestEngine
4.4
★★★★★
£100
£0
N/A
0% - 0.25%
Get a Welcome Bonus of up to £50 when you invest at least £100 with InvestEngine. T&Cs apply.
Go to site

Capital at risk

Platform details
Finder Award
FREE TRADES
eToro Free Stocks
4.3
★★★★★
$100
£0 on stocks
N/A
£0
Go to site

Capital at risk. Fees apply.

Platform details
Saxo Share Dealing Account
4.3
★★★★★
£0
£3
N/A
0.12% per year
Get up to £200 back in online trading fees during your first 3 months. T&Cs apply.
Go to site

Capital at risk

Platform details
Wealthify
4.2
★★★★★
£1
£0
N/A
0.6%
Go to site

Capital at risk

Platform details
Hargreaves Lansdown Fund and Share Account
4.2
★★★★★
£1
£11.95
£5.95
£0
Go to site

Capital at risk

Platform details
Halifax share dealing account
4.1
★★★★★
£20
£9.50
£0
£36 per year
Go to site

Capital at risk

Platform details
interactive investor Trading Account
4.1
★★★★★
£0
£3.99 (free regular investing)
£0
From £4.99 a month
Get £50 worth of free trades if you open an ii Trading Account before 31 October. T&Cs apply. New customers only. Capital at risk.
Go to site

Capital at risk

Platform details
Moneyfarm
3.9
★★★★★
£1 (£500 for managed portfolios)
£3.95
N/A
0.25% - 0.75%
Go to site

Capital at risk

Platform details
Charles Stanley share dealing account
Charles Stanley share dealing account
3.6
★★★★★
£0
£11.50
N/A
0.35%
Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct. T&Cs apply. Capital at risk.
Go to site

Capital at risk

Platform details
loading

Bottom line

Both the S&P 500 and the FTSE 100 allow you to invest in some of the biggest stocks and shares in the US and UK respectively. Each index has its benefits and drawbacks, you might find that investments copying both could find a place in your portfolio.

Each index contains some excellent businesses across a variety of sectors and generating profits around the world (not just in the US and the UK). Ultimately, investors seeking growth may lean towards the S&P 500, while those looking for stability and higher income payments from dividends may prefer the FTSE 100.

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.


Mark Tovey's headshot
To make sure you get accurate and helpful information, this guide has been reviewed by Mark Tovey, a member of Finder's Editorial Review Board.
George Sweeney, DipFA's headshot
Deputy editor

George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers. He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active. See full bio

George's expertise
George has written 175 Finder guides across topics including:
  • Investing
  • Personal finance
  • Tax
  • Pensions
  • Mortgages

More guides on Finder

  • How to buy Flutter Entertainment shares

    Thinking about buying shares in Flutter Entertainment? We explain how to do it and compare a range of providers who will give you access to global markets.

  • How to buy Dettol shares | 4676p

    Sales of Reckitt Bencksier products like Dettol have risen due to coronavirus. Here’s how you can invest in Dettol, by buying Reckitt Benckiser shares.

  • How to buy AT&T shares

    Ever wondered how to buy shares in AT&T? We explain how and compare a range of providers that can give you access to many brands, including AT&T.

  • How to buy Wincanton shares

    Ever wondered how to buy shares in Wincanton? We explain how and compare a range of providers that can give you access to many brands, including Wincanton.

  • How to buy United Utilities Group shares

    Ever wondered how to buy shares in United Utilities? We explain how and compare a range of providers that can give you access to many brands, including United Utilities.

  • How to buy Relx shares

    Find out how to buy shares in RELX, see its share prices over the last three months and check out our must-do checklist if you’re looking to invest.

  • How to buy Reach shares

    Ever wondered how to buy shares in Reach? We explain how and compare a range of providers that can give you access to many brands, including Reach.

  • How to buy WPP shares

    Ever wondered how to buy shares in WPP Group? We explain how and compare a range of providers that can give you access to many brands, including WPP Group.

  • How to buy Merlin Entertainments shares

    Find out how to buy shares in Merlin Entertainments, see Merlin Entertainments’ share prices over the last three months and check out our must-do checklist if you’re looking to invest.

  • How to buy Howden Joinery Group shares

    We explain how to buy shares in Howden Joinery, explaining the costs and fees you could come up against. We also have a checklist for anyone looking to invest in a company.

Go to site