How to invest in the UK using ETFs
How do I invest in UK stocks?
The easiest way to invest in the whole UK stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the UK stock market you'll find 3 indices which are tracked by ETFs. Besides these indices 4 alternative indices on small and mid caps as well as equity strategies can be considered.
Alternatively, you may invest in indices on Europe. The Europe indices weight the UK with 21% to 24%.
Performance of UK stocks (FTSE 100)
Indices in comparison
The best indices for ETFs on UK
For an investment in the UK stock market, there are 3 indices available which are tracked by 12 ETFs. On the FTSE 100 index there are 6 ETFs. On the FTSE All-Share index there are 2 ETFs. On the MSCI UK index there are 4 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.07% p.a. and 0.33% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE 100 |
United Kingdom | 6 ETFs | 100 |
The FTSE 100 index tracks the 100 largest UK stocks.
Index factsheet |
FTSE All-Share |
United Kingdom | 2 ETFs | 606 (31/03/2021) |
The FTSE All-Share index tracks all UK-based companies admitted to the main market of the London Stock Exchange.
Index factsheet |
MSCI UK |
United Kingdom | 4 ETFs | 88 (31/03/2021) |
The MSCI UK index tracks large and mid cap equity market performance of United Kingdom.
Index factsheet |
ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
iShares Core FTSE 100 UCITS ETF (Dist)IE0005042456 | 11,894 | 0.07% p.a. | Distributing | Ireland | Full replication | |
Vanguard FTSE 100 UCITS ETF DistributingIE00B810Q511 | 4,294 | 0.09% p.a. | Distributing | Ireland | Full replication | |
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 | 2,163 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 | 1,477 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 | 953 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 | 518 | 0.07% p.a. | Distributing | Ireland | Full replication | |
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 | 141 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 | 104 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
SPDR FTSE UK All Share UCITS ETFIE00BD5FCF91 | 101 | 0.20% p.a. | Distributing | Ireland | Optimized sampling | |
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 | 59 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
Lyxor FTSE 100 UCITS ETF - DistLU1650492256 | 35 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-UKdisLU1107559533 | 23 | 0.20% p.a. | Distributing | Luxembourg | Full replication |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
MSCI UK | 7.16% | 13.66% | 27.49% | 30.47% | 0.14% | |
FTSE 100 | 7.24% | 13.59% | 27.63% | 32.72% | 3.33% | |
FTSE All-Share | 6.99% | 13.61% | 29.71% | 37.50% | 5.22% |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
FTSE All-Share | 11.10% | -15.22% | 20.28% | -13.77% | 18.71% | |
FTSE 100 | 13.59% | -16.68% | 18.53% | -12.86% | 17.66% | |
MSCI UK | 13.66% | -18.43% | 17.57% | -13.14% | 17.29% |
Source: justETF.com; As of 31/03/2021; Calculations in CHF based on the largest ETF of the respective index.
The best UK ETFs
by 1 year return
1 | SPDR FTSE UK All Share UCITS ETF | 37.61% |
2 | SPDR FTSE UK All Share UCITS ETF | 37.50% |
3 | iShares Core FTSE 100 UCITS ETF (Dist) | 32.72% |
The cheapest UK ETFs
by total expense ratio (TER)
1 | HSBC FTSE 100 UCITS ETF GBP | 0.07% p.a. |
2 | iShares Core FTSE 100 UCITS ETF (Dist) | 0.07% p.a. |
3 | iShares Core FTSE 100 UCITS ETF GBP (Acc) | 0.07% p.a. |
UK indices on small and mid caps or equity strategies
Alternatively, you may invest in indices on small and mid caps or equity strategies. In total, you can invest in 4 alternative UK indices, which are tracked by 5 ETFs. The total expense ratio (TER) of ETFs on alternative UK indices is between 0.10% p.a. and 0.58% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE 250 | United Kingdom
Mid Cap |
2 ETFs | 250 |
The FTSE 250 index tracks 250 of the largest mid-cap companies based in the United Kingdom that are not included in the FTSE 100.
Index factsheet |
FTSE UK Dividend+ | United Kingdom
Dividend |
1 ETF | 50 (31/03/2021) |
The FTSE UK Dividend+ index tracks the highest yielding UK stocks.
Index factsheet |
MSCI UK Small Cap | United Kingdom
Small Cap |
1 ETF | 249 (31/03/2021) |
The MSCI UK Small Cap index tracks UK small cap stocks.
Index factsheet |
S&P UK High Yield Dividend Aristocrats | United Kingdom
Dividend |
1 ETF | 35 (31/03/2021) |
The S&P UK High Yield Dividend Aristocrats index tracks UK companies whose dividends have risen in the last 7 consecutive years.
Index factsheet |
ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
Vanguard FTSE 250 UCITS ETF DistributingIE00BKX55Q28 | 3,686 | 0.10% p.a. | Distributing | Ireland | Full replication | |
iShares FTSE 250 UCITS ETFIE00B00FV128 | 2,234 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
iShares UK Dividend UCITS ETFIE00B0M63060 | 973 | 0.40% p.a. | Distributing | Ireland | Full replication | |
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 | 714 | 0.58% p.a. | Accumulating | Ireland | Optimized sampling | |
SPDR S&P UK Dividend Aristocrats UCITS ETF (Dist)IE00B6S2Z822 | 143 | 0.30% p.a. | Distributing | Ireland | Full replication |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
S&P UK High Yield Dividend Aristocrats | 7.11% | 10.95% | 18.78% | 27.48% | 2.99% | |
FTSE UK Dividend+ | 10.25% | 18.02% | 44.53% | 54.91% | -4.44% | |
FTSE 250 | 6.02% | 13.83% | 37.23% | 57.61% | 14.45% | |
MSCI UK Small Cap | 6.22% | 14.51% | 38.95% | 61.05% | 11.29% |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
S&P UK High Yield Dividend Aristocrats | 10.95% | -21.53% | 33.30% | -18.85% | 8.71% | |
FTSE 250 | 11.68% | -10.20% | 30.30% | -17.35% | 23.68% | |
MSCI UK Small Cap | 12.66% | -10.95% | 30.85% | -19.26% | 26.53% | |
FTSE UK Dividend+ | 15.94% | -21.85% | 20.28% | -18.35% | 12.25% |
Source: justETF.com; As of 31/03/2021; Calculations in CHF based on the largest ETF of the respective index.
Europe indices with a large UK share
Besides UK ETFs you may invest in ETFs on the European stock market. In total, you can invest in 3 indices on Europe, which are tracked by 20 ETFs. The UK is weighted with around 21% to 24% in these indices. The total expense ratio (TER) of ETFs on Europe indices is between 0.10% p.a. and 0.51% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
MSCI Europe | Europe
UK: 21.46% (30/10/2020) |
11 ETFs | 434 (31/03/2021) |
The MSCI Europe index tracks the leading stocks from 15 European industrial countries.
Index factsheet |
STOXX® Europe 50 | Europe
UK: 24.20% (30/10/2020) |
2 ETFs | 50 |
The STOXX® Europe 50 index tracks 50 European large cap stocks.
Index factsheet |
STOXX® Europe 600 | Europe
UK: 21.50% (30/10/2020) |
7 ETFs | 600 |
The STOXX® Europe 600 index tracks the 600 largest European companies.
Index factsheet |
ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 | 6,836 | 0.12% p.a. | Distributing | Ireland | Optimized sampling | |
iShares STOXX Europe 600 UCITS ETF (DE)DE0002635307 | 6,662 | 0.20% p.a. | Distributing | Germany | Full replication | |
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 | 5,015 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
Amundi MSCI Europe UCITS ETF EUR (C)LU1681042609 | 2,855 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
Xtrackers MSCI Europe UCITS ETF 1CLU0274209237 | 2,795 | 0.12% p.a. | Accumulating | Luxembourg | Full replication | |
Lyxor MSCI Europe (DR) UCITS ETF - AccFR0010261198 | 1,294 | 0.25% p.a. | Accumulating | France | Full replication | |
BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550193 | 826 | 0.20% p.a. | Accumulating | France | Unfunded swap | |
iShares STOXX Europe 50 UCITS ETFIE0008470928 | 548 | 0.35% p.a. | Distributing | Ireland | Full replication | |
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 | 422 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 | 374 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 | 357 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
Lyxor STOXX Europe 600 UCITS ETFLU0378434582 | 330 | 0.20% p.a. | Distributing | Luxembourg | Unfunded swap | |
Amundi STOXX Europe 600 UCITS ETF EUR (C)LU1681040223 | 186 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap | |
HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 | 158 | 0.10% p.a. | Distributing | Ireland | Full replication | |
iShares STOXX Europe 50 UCITS ETF (DE)DE0005933949 | 117 | 0.51% p.a. | Distributing | Germany | Full replication | |
Invesco MSCI Europe UCITS ETFIE00B60SWY32 | 114 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550672 | 98 | 0.20% p.a. | Distributing | France | Unfunded swap | |
Xtrackers MSCI Europe UCITS ETF 1DLU1242369327 | 83 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
Lyxor 1 STOXX® Europe 600 UCITS ETFDE000ETF9603 | 46 | 0.19% p.a. | Distributing | Germany | Full replication | |
Lyxor MSCI Europe UCITS ETFLU0392494646 | 13 | 0.25% p.a. | Distributing | Luxembourg | Unfunded swap |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
STOXX® Europe 50 | 7.73% | 10.44% | 18.47% | 30.42% | 15.30% | |
MSCI Europe | 7.33% | 11.09% | 23.08% | 41.88% | 16.75% | |
STOXX® Europe 600 | 7.24% | 9.99% | 22.89% | 43.33% | 18.30% |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
STOXX® Europe 50 | 9.70% | -6.75% | 22.55% | -13.55% | 18.85% | |
STOXX® Europe 600 | 9.99% | -2.26% | 24.28% | -14.58% | 20.75% | |
MSCI Europe | 10.13% | -3.58% | 21.71% | -13.74% | 20.19% |
Source: justETF.com; As of 31/03/2021; Calculations in CHF based on the largest ETF of the respective index.