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?
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
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
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
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
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)
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.