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 4 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 25% to 30%.

0.07% p.a. - 0.33% p.a.
annual total expense ratio (TER) of UK ETFs
on the UK stock market, which are tracked by ETFs
on the UK stock market
The best indices for UK ETFs

Performance of UK stocks (FTSE 100)

1 month: -19.59%
1 year: -24.37%
3 years: -18.16%
5 years: -19.09%

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 8 ETFs. On the FTSE All-Share index there are 3 ETFs. On the MSCI UK index there are 2 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 8 ETFs 100
The FTSE 100 index tracks the 100 largest UK stocks.
Index factsheet

FTSE All-Share

United Kingdom 3 ETFs 622
(28/02/20)
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 2 ETFs 96
(31/03/20)
The MSCI UK index tracks large and mid cap equity market performance of United Kingdom.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Core FTSE 100 UCITS ETF (Dist)IE0005042456 7,877 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETF DistributingIE00B810Q511 2,812 0.09% p.a. Distributing Ireland Full replication
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 632 0.07% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 417 0.20% p.a. Accumulating Ireland Optimized sampling
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 272 0.07% p.a. Distributing Ireland Full replication
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 88 0.33% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00BD5FCF91 74 0.20% p.a. Distributing Ireland Optimized sampling
Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 69 0.09% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 61 0.09% p.a. Accumulating Luxembourg Full replication
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 56 0.20% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE All-Share UCITS ETF 1DLU0292097747 44 0.20% p.a. Distributing Luxembourg Optimized sampling
Amundi ETF MSCI UK UCITS ETF EUR (C)FR0010655761 22 0.25% p.a. Accumulating France Unfunded swap
ComStage FTSE 100 TR UCITS ETFLU0488316216 3 0.09% p.a. Distributing Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI UK -16.36% -26.75% -22.08% -21.58% -16.70%
FTSE All-Share -17.81% -27.81% -21.80% -20.88% -15.48%
FTSE 100 -16.01% -26.34% -21.28% -20.43% -14.51%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
FTSE All-Share -28.65% 24.89% -10.45% 8.93% -0.11%
MSCI UK -27.40% 21.93% -9.91% 7.48% 1.84%
FTSE 100 -27.26% 23.11% -9.53% 8.01% 2.06%

Source: justETF.com; As of 31/03/20; Calculations in EUR based on the largest ETF of the respective index.

 
Alternative investment opportunities

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 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
(28/02/20)
The FTSE UK Dividend+ index tracks the highest yielding UK stocks.
Index factsheet
MSCI UK Small Cap United Kingdom
Small Cap
1 ETF 253
(31/03/20)
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 39
(28/02/20)
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 EUR
TER
in %
Use of profits Fund domicile Replication method
Vanguard FTSE 250 UCITS ETF DistributingIE00BKX55Q28 1,792 0.10% p.a. Distributing Ireland Full replication
iShares UK Dividend UCITS ETFIE00B0M63060 627 0.40% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 202 0.58% p.a. Accumulating Ireland Optimized sampling
SPDR S&P UK Dividend Aristocrats UCITS ETF (Dist)IE00B6S2Z822 101 0.30% p.a. Distributing Ireland Full replication
Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 45 0.15% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE UK Dividend+ -28.25% -38.53% -29.96% -31.31% -35.70%
MSCI UK Small Cap -26.41% -35.18% -25.17% -24.55% -18.39%
FTSE 250 -24.80% -33.63% -23.76% -21.52% -17.10%
S&P UK High Yield Dividend Aristocrats -21.39% -29.95% -17.68% -17.14% -22.36%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
FTSE UK Dividend+ -39.10% 24.90% -15.18% 3.02% -6.98%
MSCI UK Small Cap -35.79% 35.86% -16.16% 16.12% -8.89%
FTSE 250 -34.17% 35.26% -14.16% 13.50% -8.80%
S&P UK High Yield Dividend Aristocrats -30.73% 38.42% -15.78% -0.19% -7.22%

Source: justETF.com; As of 31/03/20; Calculations in EUR 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 27 ETFs. The UK is weighted with around 25% to 30% in the Europe indices. The total expense ratio (TER) of ETFs on Europe indices is between 0.07% p.a. and 0.52% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI Europe Europe
UK: 26.12%
(31/12/2019)
13 ETFs 438
(31/03/20)
The MSCI Europe index tracks the leading stocks from 15 European industrial countries.
Index factsheet
MSCI Europe Large Cap Europe
UK: 25.87%
(31/12/2019)
1 ETF 193
(31/03/20)
The MSCI Europe Large Cap index tracks large cap stocks from European industrial countries.
Index factsheet
STOXX® Europe 50 Europe
UK: 28.60%
(31/12/2019)
4 ETFs 50
The STOXX® Europe 50 index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 25.50%
(31/12/2019)
9 ETFs 600
(31/01/20)
The STOXX® Europe 600 index tracks the 600 largest European companies.
Index factsheet
ETF
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 5,525 0.12% p.a. Distributing Ireland Optimized sampling
iShares STOXX Europe 600 UCITS ETF (DE)DE0002635307 4,709 0.20% p.a. Distributing Germany Full replication
Xtrackers MSCI Europe Index UCITS ETF 1CLU0274209237 2,237 0.25% p.a. Accumulating Luxembourg Full replication
Amundi MSCI Europe UCITS ETF EUR (C)LU1681042609 1,916 0.15% p.a. Accumulating Luxembourg Unfunded swap
Lyxor Core STOXX Europe 600 (DR) UCITS ETF AccLU0908500753 1,628 0.07% p.a. Accumulating Luxembourg Full replication
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 1,587 0.12% p.a. Accumulating Ireland Optimized sampling
Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 1,309 0.20% p.a. Accumulating Luxembourg Optimized sampling
Lyxor MSCI Europe (DR) UCITS ETF D-EURFR0010261198 1,148 0.25% p.a. Distributing France Full replication
BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550193 673 0.20% p.a. Accumulating France Unfunded swap
iShares STOXX Europe 50 UCITS ETFIE0008470928 581 0.35% p.a. Distributing Ireland Full replication
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 436 0.25% p.a. Accumulating Ireland Full replication
Invesco MSCI Europe UCITS ETFIE00B60SWY32 425 0.19% p.a. Accumulating Ireland Unfunded swap
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 312 0.20% p.a. Distributing Luxembourg Full replication
Deka MSCI Europe UCITS ETFDE000ETFL284 293 0.30% p.a. Distributing Germany Full replication
Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 267 0.19% p.a. Accumulating Ireland Unfunded swap
Amundi ETF STOXX Europe 50 UCITS ETF EUR (C)FR0010790980 212 0.15% p.a. Accumulating France Unfunded swap
ComStage STOXX Europe 600 UCITS ETFLU0378434582 210 0.20% p.a. Distributing Luxembourg Unfunded swap
iShares STOXX Europe 50 UCITS ETF (DE)DE0005933949 155 0.52% p.a. Distributing Germany Full replication
HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 126 0.10% p.a. Distributing Ireland Full replication
Xtrackers MSCI Europe Index UCITS ETF 1DLU1242369327 124 0.12% p.a. Distributing Luxembourg Full replication
Amundi STOXX Europe 600 UCITS ETF EUR (C)LU1681040223 124 0.18% p.a. Accumulating Luxembourg Unfunded swap
BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550672 99 0.20% p.a. Distributing France Unfunded swap
Amundi Index MSCI Europe UCITS ETF DR EUR (D)LU1737652310 60 0.15% p.a. Distributing Luxembourg Full replication
Deka MSCI Europe Large Cap UCITS ETFDE000ETFL086 27 0.31% p.a. Distributing Germany Full replication
Deka STOXX Europe 50 UCITS ETFDE000ETFL250 27 0.20% p.a. Distributing Germany Full replication
Lyxor 1 STOXX Europe 600 UCITS ETFDE000ETF9603 21 0.19% p.a. Distributing Germany Full replication
ComStage MSCI Europe UCITS ETFLU0392494646 9 0.25% p.a. Distributing Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Europe Large Cap -13.20% -22.18% -17.84% -13.20% -8.52%
MSCI Europe -14.14% -22.39% -17.97% -13.14% -8.53%
STOXX® Europe 600 -14.29% -22.91% -17.63% -12.70% -7.94%
STOXX® Europe 50 -10.14% -18.88% -14.92% -9.35% -4.67%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Europe -23.02% 26.34% -10.42% 10.29% 2.66%
STOXX® Europe 600 -22.91% 28.56% -10.97% 10.78% 1.56%
MSCI Europe Large Cap -22.18% 26.06% -9.78% 9.12% 2.62%
STOXX® Europe 50 -19.51% 27.24% -10.21% 9.05% 0.93%

Source: justETF.com; As of 31/03/20; Calculations in EUR based on the largest ETF of the respective index.