The UK Equities Grandaddy ETF

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The stellar track record of the S&P 500 is the foundation of modern investing. But what if index trackers had been invented in the UK in 1900? How would that look?

The UK Equities Grandaddy ETF
 
What to expect in this article
Almost a quarter of a century ago, Warren Buffett urged investors to put their money into index trackers. The Sage of Omaha said:
“Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.”
Buffett’s dictum rests upon the empirical fact that the market is extremely hard to beat. Afterall, US stocks have returned an astounding 10 % annualised in dollar terms since 1900.
But what if the index fund had not been invented in 1970s America? What if the grandaddy of ETFs had first launched in Britain over 100 years ago? Would a UK equities ETF be a great advert for buy and hold investing?
The good news is that if your great-great grandparents could have invested in a UK index tracker back then, it would have compounded at a solid 8.77 % annualised.
And while the UK’s share of global indices has declined in recent years, the FTSE All-Share has actually outperformed the MSCI World since the latter's launch: 11.05 % to 10.39 % (annualised returns, 1970-2025).
So to celebrate the UK’s status as a stock market investing powerhouse, we thought it would be fun to imagine a justETF webpage for a UK equities ETF launched at the dawn of the 20th century.
In so doing, we’re able to recreate the British investing experience over the past 126 years. At least in an alternative universe where you could send a telegram to your broker and place an order for shares in the new-fangled Exchange Traded Funds that were causing such a stir back in 1900...

The UK Equities Grandaddy ETF

Ticker: GDAD
Description: The UK Equities Grandaddy ETF tracks the largest and most traded British firms from 1900 to 2025. From 1962 to the present, it follows the FTSE All-Share index which covers 98 % of the London Stock Exchange by market capitalisation. Index: Composite UK stock index / FTSE All-Share
Investment focus: Equity, UK
Total expense ratio: Cheap at the price
Replication: Physical
Legal structure: ETF
Strategy risk: Long only
Fund currency: GBP
Currency risk: Currency unhedged
Inception: 1 January 1900
Distribution policy: Accumulating
Fund domicile: UK

UK stock market growth of the UK Equities Grandaddy ETF

Maximum: +4,001,376.55 %
Date: 31/12/2025, in % GBP

Cumulative total returns 1900-2025

Cumulative total returns 1900-2025 of the UK Equities Grandaddy ETF
Source: justETF research, 09.05.2026. Nominal cumulative total returns in GBP.

Returns overview of the UK Equities Grandaddy ETF

Years Cumulative total return Annualised total return
1 24.02 % 24.02 %
3 46.51 % 13.58 %
5 73.94 % 11.71 %
10 123.44 % 8.37 %
15 199.01 % 7.58 %
20 283.86 % 6.96 %
25 328.32 % 5.99 %
30 720.97 % 7.27 %
35 1685.98 % 8.58 %
40 3230.01 % 9.16 %
45 9871.11 % 10.77 %
50 24217.68 % 11.61 %
100 1026233.23 % 9.68 %
126 years (MAX) 4001376.55 % 8.77 %
Source: justETF research, 09/05/2026.

Total returns for every year 1900-2025 of the UK Equities Grandaddy ETF

Total returns for every year 1900-2025 of the UK Equities Grandaddy ETF
Source: justETF research, 09/05/2026. Annualised return is the average geometric rate of return across the entire time period.

Best and worst annual returns of the UK Equities Grandaddy ETF

Year Best annual returns Year Worst annual returns
1975 154.51 % 1974 -51.51 %
1959 50.28 % 2008 -29.93 %
1968 48.59 % 1973 -28.56 %
1971 47.21 % 2002 -22.68 %
1977 45.48 % 1920 -22.63 %
1954 41.75 % 1931 -17.75 %
1958 41.55 % 1930 -13.42 %
1980 37.19 % 2001 -13.29 %
1989 35.52 % 1937 -12.33 %
1922 35.48 % 1969 -11.83 %
Source: justETF research, 09/05/2026.

Risk assessment of the UK Equities Grandaddy ETF

Bear market start Bear market end Bear market duration Max drawdown
31/01/1920 31/10/1921 1y 9m -31.08 %
31/01/1929 30/06/1932 3y 5m -45.27 %
31/01/1937 31/07/1940 3y 6m -25.57 %
31/10/1951 30/06/1952 0y 8m -21.33 %
31/07/1957 28/02/1958 0y 7m -20.14 %
31/01/1969 31/05/1970 1y 4m -30.00 %
30/04/1972 30/11/1974 2y 7m -66.36 %
30/09/1987 30/11/1987 0y 2m -33.60 %
31/08/2000 31/01/2003 2y 5m -42.92 %
31/10/2007 28/02/2009 1y 4m -41.09 %
31/12/2019 31/03/2020 0y 3m -25.13 %
Source: justETF research, 09/05/2026. Max drawdown since inception: -66.36 % (1974)

High water mark chart of the UK Equities Grandaddy ETF

High water mark chart of the UK Equities Grandaddy ETF
Source: justETF research, 09/05/2026.
Like all markets, the long-term growth of UK equities has been punctuated by periodic and, at times, severe drawdowns.
Drawdowns occur when a market falls below its previous peak, and end when a new high is reached. The length and depth of each drawdown is shaded in purple.

Risk overview of the UK Equities Grandaddy ETF

Years Volatility Return per risk
1 7.62 % 3.15
3 9.00 % 1.508
5 9.67 % 1.21
10 11.83 % 0.708
15 11.59 % 0.654
20 13.01 % 0.535
25 13.32 % 0.45
30 13.33 % 0.545
35 13.47 % 0.637
40 14.71 % 0.623
45 14.76 % 0.729
50 15.33 % 0.758
100 15.70 % 0.616
126 years (MAX) 14.29 % 0.614
Source: justETF research, 09/05/2026.

Rolling 1 year volatility

Rolling 1 year volatility of the UK Equities Grandaddy ETF
Source: justETF research, 09/05/2026.

Further information (as of 31/12/2025)

  • Annualised return: 8.77 %
  • Cumulative return: 4,001,376.55 %
  • Volatility: 14.29 %
  • Return per risk: 0.61
  • Max drawdown: -66.36 % (November 1974)
  • Longest drawdown: 7 years (January 1929 - January 1936)
Here you can find more on investing in the UK using ETFs.

Sources:

1900-1929 UK stock returns, Campbell G, Grossman R, Turner JD. (2021): Before the cult of equity: the British stock market, 1829–1929. European Review of Economic History. 25. 10.1093/ereh/heab003.
1930-1962 Composite UK stock index, Chadha J, Rincon-Aznar A, Srinivasan S, Thomas R. A Century of UK Economic Trends. ESCoE, NIESR and Bank of England.
1962-2018 FTSE All-Share index, A Century of UK Economic Trends.
2018-2025 FTSE All-Share index, FTSE Russell.
 
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