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 28% to 42%.

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

Performance of UK stocks (FTSE 100)

1 month: 2.45%
1 year: 6.12%
3 years: 19.20%
5 years: 38.08%

Indices in comparison

The best indices for ETFs on UK

For an investment in the UK stock market, 3 indices tracked by 12 ETFs are available. On the FTSE 100 index there are 8 ETFs. On the FTSE All-Share index there are 2 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 (total return) index tracks the 100 largest UK stocks.
Index factsheet

FTSE All-Share

United Kingdom 2 ETFs 628
(31.10.16)
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 2 ETFs 109
(30.06.17)
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 6,000 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETFIE00B810Q511 3,027 0.09% p.a. Distributing Ireland Full replication
iShares FTSE 100 UCITS ETF (Acc)IE00B53HP851 503 0.07% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 345 0.20% p.a. Accumulating Ireland Optimized sampling
HSBC FTSE 100 UCITS ETF GBPDE000A1C0BC5 167 0.07% p.a. Distributing Ireland Full replication
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 146 0.33% p.a. Accumulating Ireland Full replication
db x-trackers FTSE 100 UCITS ETF (DR) 1CLU0838780707 141 0.09% p.a. Accumulating Luxembourg Full replication
db x-trackers FTSE 100 UCITS ETF (DR) Income 1DLU0292097234 141 0.09% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 116 0.20% p.a. Distributing Luxembourg Full replication
Amundi ETF MSCI UK UCITS ETFFR0010655761 92 0.25% p.a. Accumulating France Unfunded swap
db x-trackers FTSE All-Share UCITS ETF (DR) 1DLU0292097747 78 0.20% p.a. Distributing Luxembourg Optimized sampling
ComStage FTSE 100 TR UCITS ETFLU0488316216 6 0.09% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI UK -1.77% 4.71% -2.52% 8.21% 8.51%
FTSE 100 -1.79% 4.98% -2.04% 8.84% 10.47%
FTSE All-Share -1.64% 5.46% -1.75% 9.60% 12.44%
Index   2017
in %
2016
in %
2015
in %
2014
in %
2013
in %
MSCI UK 3.23% 1.83% 3.47% 7.19% 15.50%
FTSE 100 3.71% 2.18% 4.37% 7.45% 15.80%
FTSE All-Share 4.84% -0.13% 6.94% 8.18% 18.27%

Source: justETF.com; As of 30.11.17; 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 (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
The FTSE UK Dividend+ index tracks the 50 highest yielding UK stocks.
Index factsheet
MSCI UK Small Cap United Kingdom
Small Cap
1 ETF 269
(30.06.17)
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 30
(31.10.16)
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 EUR
TER
in %
Use of profits Fund domicile Replication method
iShares UK Dividend UCITS ETFIE00B0M63060 836 0.40% p.a. Distributing Ireland Full replication
Vanguard FTSE 250 UCITS ETFIE00BKX55Q28 656 0.10% p.a. Distributing Ireland Full replication
SPDR S&P UK Dividend Aristocrats UCITS ETFIE00B6S2Z822 116 0.30% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 101 0.58% p.a. Accumulating Ireland Optimized sampling
db x-trackers FTSE 250 UCITS ETF (DR) 1DLU0292097317 73 0.15% p.a. Distributing Luxembourg 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 -4.28% 1.61% -10.55% 0.40% -1.58%
FTSE UK Dividend+ -2.38% 1.74% -8.75% 0.93% -1.62%
FTSE 250 -1.17% 7.35% -0.34% 13.11% 22.54%
MSCI UK Small Cap -1.28% 8.06% 1.44% 15.39% 29.05%
Index   2017
in %
2016
in %
2015
in %
2014
in %
2013
in %
S&P UK High Yield Dividend Aristocrats -3.05% -7.16% 8.43% 4.82% 26.00%
FTSE UK Dividend+ -2.60% -6.98% 6.92% 14.53% 20.93%
FTSE 250 10.00% -8.80% 17.72% - -
MSCI UK Small Cap 12.22% -8.89% 21.15% 6.63% 32.75%

Source: justETF.com; As of 30.11.17; 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 5 indices on Europe, which are tracked by 26 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 0.07% p.a. and 0.51% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSEurofirst 100 Europe
UK: 41.94%
(31/10/2016)
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: 28.71%
(31/10/2016)
12 ETFs 445
(30.06.17)
The MSCI Europe (total return) index tracks the leading stocks from 15 European industrial countries.
Index factsheet
MSCI Europe Large Cap Europe
UK: 28.37%
(31/10/2016)
2 ETFs 202
(30.06.17)
The MSCI Europe Large Cap (price) index tracks large cap stocks from European industrial countries (real time).
Index factsheet
STOXX® Europe 50 Europe
UK: 33.80%
(31/10/2016)
4 ETFs 50
The STOXX® Europe 50 (total return) index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 28.70%
(31/10/2016)
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 EUR
TER
in %
Use of profits Fund domicile Replication method
iShares STOXX Europe 600 UCITS ETF (DE)DE0002635307 6,481 0.20% p.a. Distributing Germany Full replication
iShares MSCI Europe UCITS ETF (Dist)IE00B1YZSC51 5,123 0.35% p.a. Distributing Ireland Optimized sampling
db x-trackers MSCI Europe Index UCITS ETF (DR) 1CLU0274209237 3,116 0.25% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI Europe UCITS ETF D-EURFR0010261198 1,803 0.25% p.a. Distributing France Unfunded swap
db x-trackers STOXX Europe 600 UCITS ETF (DR) 1CLU0328475792 1,628 0.20% p.a. Accumulating Luxembourg Optimized sampling
Amundi ETF MSCI Europe UCITS ETFFR0010655696 1,575 0.15% p.a. Accumulating France Unfunded swap
BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550193 1,123 0.30% p.a. Accumulating France Unfunded swap
iShares STOXX Europe 50 UCITS ETFIE0008470928 912 0.35% p.a. Distributing Ireland Full replication
Lyxor STOXX Europe 600 (DR) UCITS ETF C-EURLU0908500753 788 0.07% p.a. Accumulating Luxembourg Full replication
iShares MSCI Europe UCITS ETF (Acc)IE00B4K48X80 725 0.33% p.a. Accumulating Ireland Optimized sampling
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 608 0.25% p.a. Accumulating Ireland Full replication
Source MSCI Europe UCITS ETF AIE00B60SWY32 498 0.20% p.a. Accumulating Ireland Unfunded swap
Amundi ETF STOXX Europe 600 UCITS ETFFR0010791004 361 0.18% p.a. Accumulating France Unfunded swap
Source STOXX Europe 600 UCITS ETF AIE00B60SWW18 290 0.19% p.a. Accumulating Ireland Unfunded swap
Deka MSCI Europe UCITS ETFDE000ETFL284 280 0.30% p.a. Distributing Germany Full replication
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 267 0.20% p.a. Distributing Luxembourg Full replication
ComStage STOXX Europe 600 NR UCITS ETFLU0378434582 245 0.20% p.a. Accumulating Luxembourg Unfunded swap
iShares STOXX Europe 50 UCITS ETF (DE)DE0005933949 243 0.51% p.a. Distributing Germany Full replication
HSBC MSCI Europe UCITS ETF EURDE000A1C22L5 181 0.20% p.a. Distributing Ireland Full replication
Amundi ETF STOXX Europe 50 UCITS ETFFR0010790980 174 0.15% p.a. Accumulating France Unfunded swap
Deka MSCI Europe LC UCITS ETFDE000ETFL086 36 0.30% p.a. Distributing Germany Full replication
Deka STOXX Europe 50 UCITS ETFDE000ETFL250 29 0.19% p.a. Distributing Germany Full replication
iShares FTSEurofirst 100 UCITS ETFIE0030974079 28 0.40% p.a. Distributing Ireland Full replication
ComStage MSCI Europe TRN UCITS ETFLU0392494646 18 0.25% p.a. Accumulating Luxembourg Unfunded swap
db x-trackers MSCI Europe Index UCITS ETF (DR) 1DLU1242369327 15 0.25% p.a. Distributing Luxembourg Full replication
ComStage MSCI Europe Large Cap TRN UCITS ETFLU0392496187 5 0.25% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Europe Large Cap -1.63% 4.35% -0.50% 15.01% 17.37%
STOXX® Europe 50 -1.43% 5.04% -0.99% 15.21% 13.79%
FTSEurofirst 100 -2.00% 5.00% -0.10% 15.24% 16.63%
MSCI Europe -1.79% 4.46% -0.19% 15.84% 19.86%
STOXX® Europe 600 -1.73% 4.51% -0.21% 16.40% 21.73%
Index   2017
in %
2016
in %
2015
in %
2014
in %
2013
in %
STOXX® Europe 50 8.27% 0.93% 6.49% 6.20% 16.92%
MSCI Europe Large Cap 8.40% 2.62% 8.00% 6.57% 18.49%
FTSEurofirst 100 8.46% 5.15% 4.34% 5.38% 18.82%
MSCI Europe 9.43% 2.66% 8.23% 6.84% 19.71%
STOXX® Europe 600 10.01% 1.56% 10.80% 7.33% 20.54%

Source: justETF.com; As of 30.11.17; Calculations in EUR based on the largest ETF of the respective index.