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 find 3 indices, which are tracked by ETFs. Besides these indices 5 alternative indices on small and mid caps as well as dividend strategies can be considered.
Alternatively, you may invest in indices on Europe. The Europe indices weight the UK with 28% to 42%.
Performance of UK stocks (FTSE 100)
Indices in comparison
The best indices for ETFs on UK
For an investment in the UK stock market, 3 indices tracked by 13 ETFs are available. On the FTSE 100 index there are 7 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 | 7 ETFs | 101 (31/08/18) |
The FTSE 100 (price) index tracks the 100 largest UK stocks.
Index factsheet |
FTSE All-Share |
United Kingdom | 2 ETFs | 637 (31/08/18) |
The FTSE All-Share (total return) index tracks all UK-based companies admitted to the main market of the London Stock Exchange.
Index factsheet |
MSCI UK |
United Kingdom | 4 ETFs | 101 (31/08/18) |
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 | 6,858 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| Vanguard FTSE 100 UCITS ETFIE00B810Q511 | 3,124 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 | 701 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| SPDR FTSE UK All Share UCITS ETFIE00B7452L46 | 571 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 | 544 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 | 222 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI UK UCITS ETF (Acc)IE00B539F030 | 156 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 | 91 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-UKdisLU1107559533 | 29 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR FTSE UK All Share UCITS ETF (Dist)IE00BD5FCF91 | 9 | 0.20% p.a. | Distributing | Ireland | Optimized sampling | |
| UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 | 8 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| ComStage FTSE 100 TR UCITS ETFLU0488316216 | 4 | 0.09% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-UKdisLU1107559459 | 3 | 0.20% p.a. | Distributing | Luxembourg | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| FTSE All-Share | -0.72% | -6.26% | -10.79% | -5.87% | 0.25% | |
| MSCI UK | -0.60% | -5.32% | -10.08% | -5.10% | 1.09% | |
| FTSE 100 | -0.68% | -5.71% | -10.33% | -5.02% | 1.74% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| FTSE 100 | -9.56% | 17.66% | 1.20% | -5.74% | 5.12% | |
| FTSE All-Share | -9.45% | 18.71% | -1.00% | -3.64% | 5.97% | |
| MSCI UK | -8.90% | 17.29% | 1.04% | -6.67% | 5.24% |
Source: justETF.com; As of 30/11/18; Calculations in CHF based on the largest ETF of the respective index.
The best UK ETFs
by 1 year return
| 1 | HSBC FTSE 100 UCITS ETF GBP | -4.97% |
| 2 | iShares Core FTSE 100 UCITS ETF GBP (Acc) | -5.01% |
| 3 | iShares Core FTSE 100 UCITS ETF (Dist) | -5.02% |
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 dividend strategies
Alternatively, you may invest in indices on small and mid caps or dividend strategies. In total, you can invest in 5 alternative UK indices, which are tracked by 6 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 (total return) index tracks around 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 (31/08/18) |
The FTSE UK Dividend+ index tracks the 50 highest yielding UK stocks.
Index factsheet |
| MSCI UK IMI Extended SRI 5% Capped | United Kingdom
Social/Environmental |
1 ETF | 168 (29/12/17) |
The MSCI UK IMI Extended SRI 5% Issuer Capped index tracks socially or environmentally responsible UK companies.
Index factsheet |
| MSCI UK Small Cap | United Kingdom
Small Cap |
1 ETF | 269 (31/08/18) |
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 | 40 (31/08/18) |
The S&P UK High Yield Dividend Aristocrats index tracks appr. 30 highest dividend-yielding UK companies.
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Vanguard FTSE 250 UCITS ETFIE00BKX55Q28 | 895 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| iShares FTSE 250 UCITS ETFIE00B00FV128 | 884 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares UK Dividend UCITS ETFIE00B0M63060 | 753 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 | 133 | 0.58% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (IE) MSCI UK IMI Socially Responsible UCITS ETF (GBP) A-disIE00BMP3HN93 | 129 | 0.28% p.a. | Distributing | Ireland | Full replication | |
| SPDR S&P UK Dividend Aristocrats UCITS ETFIE00B6S2Z822 | 94 | 0.30% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI UK Small Cap | -2.80% | -12.54% | -16.28% | -10.92% | -5.22% | |
| S&P UK High Yield Dividend Aristocrats | -1.08% | -6.39% | -11.67% | -10.08% | -17.35% | |
| FTSE 250 | -1.14% | -9.40% | -13.05% | -9.08% | -5.82% | |
| FTSE UK Dividend+ | -4.76% | -8.69% | -13.32% | -7.89% | -16.82% | |
| MSCI UK IMI Extended SRI 5% Capped | 0.53% | -6.27% | -11.06% | -6.69% | -3.21% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI UK Small Cap | -13.94% | 26.53% | -9.70% | 9.18% | 4.43% | |
| FTSE UK Dividend+ | -12.97% | 12.25% | -7.76% | -3.66% | 12.13% | |
| S&P UK High Yield Dividend Aristocrats | -12.49% | 8.71% | -8.03% | -2.28% | 2.68% | |
| FTSE 250 | -11.90% | 23.68% | -9.61% | 6.09% | - | |
| MSCI UK IMI Extended SRI 5% Capped | -9.24% | 18.51% | -4.58% | 0.27% | - |
Source: justETF.com; As of 30/11/18; 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 4 indices on Europe, which are tracked by 23 ETFs. The UK is weighted with around 28% to 42% in the Europe indices. The total expense ratio (TER) of ETFs on Europe indices is between 0.12% p.a. and 0.51% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSEurofirst 100 | Europe
UK: 40.59% (29/12/2017) |
1 ETF | 100 |
The FTSEurofirst 100 index tracks the 60 largest European companies measured by market capitalisation in the FTSE Developed Europe Index and 40 additional companies selected for their size and sector representation.
Index factsheet |
| MSCI Europe | Europe
UK: 28.02% (29/12/2017) |
13 ETFs | 446 (31/08/18) |
The MSCI Europe (total return) index tracks the leading stocks from 15 European industrial countries.
Index factsheet |
| STOXX® Europe 50 | Europe
UK: 32.90% (29/12/2017) |
2 ETFs | 50 |
The STOXX® Europe 50 (total return) index tracks 50 European large cap stocks.
Index factsheet |
| STOXX® Europe 600 | Europe
UK: 27.30% (29/12/2017) |
7 ETFs | 600 |
The STOXX® Europe 600 index tracks European equities, with the 600
stocks broken down as follows: 200 large cap, 200 middle cap and 200 small cap equities.
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares STOXX Europe 600 UCITS ETF (DE)DE0002635307 | 6,200 | 0.20% p.a. | Distributing | Germany | Full replication | |
| iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 | 4,707 | 0.12% p.a. | Distributing | Ireland | Optimized sampling | |
| Xtrackers MSCI Europe Index UCITS ETF 1CLU0274209237 | 2,634 | 0.25% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi MSCI Europe UCITS ETF - EUR (C)LU1681042609 | 2,196 | 0.15% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI Europe UCITS ETF D-EURFR0010261198 | 1,989 | 0.25% p.a. | Distributing | France | Unfunded swap | |
| BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550193 | 1,314 | 0.20% p.a. | Accumulating | France | Unfunded swap | |
| iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 | 978 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares STOXX Europe 50 UCITS ETFIE0008470928 | 657 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 | 585 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| Invesco MSCI Europe UCITS ETFIE00B60SWY32 | 578 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| Xtrackers MSCI Europe Index UCITS ETF 1DLU1242369327 | 498 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi STOXX Europe 600 UCITS ETF - EUR (C)LU1681040223 | 418 | 0.18% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 | 299 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 | 282 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| ComStage STOXX Europe 600 NR UCITS ETFLU0378434582 | 268 | 0.20% p.a. | Distributing | Luxembourg | Unfunded swap | |
| BNP Paribas Easy STOXX Europe 600 UCITS ETF HFR0011550672 | 185 | 0.20% p.a. | Distributing | France | Unfunded swap | |
| iShares STOXX Europe 50 UCITS ETF (DE)DE0005933949 | 167 | 0.51% p.a. | Distributing | Germany | Full replication | |
| HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 | 156 | 0.20% p.a. | Distributing | Ireland | Full replication | |
| iShares FTSEurofirst 100 UCITS ETFIE0030974079 | 27 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| Amundi ETF MSCI Europe UCITS ETF - EUR (D)LU1681042781 | 26 | 0.15% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Comstage 1 STOXX® Europe 600 UCITS ETFDE000ETF9603 | 16 | 0.19% p.a. | Distributing | Germany | Full replication | |
| ComStage MSCI Europe TRN UCITS ETFLU0392494646 | 13 | 0.25% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Xtrackers ESG MSCI Europe UCITS ETF 1CIE00BFMNHK08 | 7 | 0.20% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| FTSEurofirst 100 | 0.45% | -5.90% | -8.76% | -8.22% | 4.81% | |
| STOXX® Europe 600 | 0.30% | -6.93% | -7.88% | -7.67% | 5.64% | |
| MSCI Europe | 0.44% | -6.39% | -7.53% | -7.37% | 5.76% | |
| STOXX® Europe 50 | 1.18% | -4.10% | -5.19% | -6.91% | 2.96% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| FTSEurofirst 100 | -8.92% | 19.08% | 4.23% | -5.97% | 3.23% | |
| STOXX® Europe 600 | -8.36% | 20.75% | 0.86% | -0.39% | 5.15% | |
| MSCI Europe | -8.12% | 20.19% | 1.77% | -2.49% | 4.68% | |
| STOXX® Europe 50 | -7.62% | 18.85% | 0.04% | -4.03% | 4.01% |
Source: justETF.com; As of 30/11/18; Calculations in CHF based on the largest ETF of the respective index.