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'll find 4 indices which are tracked by ETFs. Besides these indices 7 alternative indices on small and mid caps as well as equity strategies can be considered.

Alternatively, you may invest in indices on Europe. The Europe indices weight the UK with 21% to 24%.

0.04% 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: 4.39%
1 year: 29.82%
3 years: 8.73%
5 years: 34.45%

Indices in comparison

The best indices for ETFs on UK

For an investment in the UK stock market, there are 4 indices available which are tracked by 18 ETFs. On the FTSE 100 index there are 11 ETFs. On the FTSE All-Share index there are 2 ETFs. On the MSCI UK index there are 4 ETFs. On the Morningstar UK index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.04% p.a. and 0.33% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

FTSE 100

United Kingdom 11 ETFs 100
The FTSE 100 index tracks the 100 largest UK stocks.
Index factsheet

FTSE All-Share

United Kingdom 2 ETFs 606
(31/03/2021)
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 4 ETFs 88
(31/03/2021)
The MSCI UK index tracks large and mid cap equity market performance of United Kingdom.
Index factsheet

Morningstar UK

United Kingdom 1 ETF 314
(30/10/2020)
The Morningstar UK index tracks mid and large cap equities of the United Kingdom.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares Core FTSE 100 UCITS ETF (Dist)IE0005042456 9,374 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETF DistributingIE00B810Q511 3,384 0.09% p.a. Distributing Ireland Full replication
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 1,705 0.07% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 1,164 0.20% p.a. Accumulating Luxembourg Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 751 0.20% p.a. Accumulating Ireland Optimized sampling
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 408 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETF (GBP) AccumulatingIE00BFMXYP42 351 0.09% p.a. Accumulating Ireland Full replication
Lyxor FTSE 100 UCITS ETF - AccLU1650492173 286 0.14% p.a. Accumulating Luxembourg Unfunded swap
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 111 0.33% p.a. Accumulating Ireland Full replication
Lyxor Core Morningstar UK NT (DR) UCITS ETF - DistLU1781541096 108 0.04% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 82 0.20% p.a. Distributing Luxembourg Full replication
SPDR FTSE UK All Share UCITS ETFIE00BD5FCF91 80 0.20% p.a. Distributing Ireland Optimized sampling
Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 77 0.09% p.a. Accumulating Luxembourg Full replication
Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 68 0.09% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 46 0.20% p.a. Distributing Luxembourg Full replication
Invesco FTSE 100 UCITS ETFIE00B60SWT88 38 0.09% p.a. Accumulating Ireland Unfunded swap
Amundi ETF MSCI UK UCITS ETF EUR (C)FR0010655761 33 0.25% p.a. Accumulating France Unfunded swap
Lyxor FTSE 100 UCITS ETF - DistLU1650492256 27 0.14% p.a. Distributing Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI UK 4.10% 5.13% 16.17% 19.85% 3.76%
FTSE 100 4.17% 4.99% 16.40% 21.99% 6.98%
Morningstar UK 3.81% 5.04% 17.60% 24.02% 7.44%
FTSE All-Share 3.96% 5.10% 18.26% 26.42% 9.07%
Index   2021
in %
2020
in %
2019
in %
2018
in %
2017
in %
FTSE All-Share 3.77% -10.01% 18.81% -9.73% 12.90%
Morningstar UK 4.26% -11.39% 18.48% - -
FTSE 100 4.99% -11.47% 17.05% -8.78% 11.91%
MSCI UK 5.13% -13.41% 16.08% -9.08% 11.56%

Source: justETF.com; As of 31/03/2021; Calculations in GBP based on the largest ETF of the respective index.

 
Alternative investment opportunities

UK indices on small and mid caps or equity strategies

Alternatively, you may invest in indices on small and mid caps or equity strategies. In total, you can invest in 7 alternative UK indices, which are tracked by 12 ETFs. The total expense ratio (TER) of ETFs on alternative UK indices is between 0.05% p.a. and 0.58% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE 100 Minimum Variance United Kingdom
Low Volatility/Risk Weighted
1 ETF 100
The FTSE 100 Minimum Variance index tracks the 100 most liquid UK stocks in the FTSE 100 optimised for the lowest absolute risk.
Index factsheet
FTSE 250 United Kingdom
Mid Cap
6 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 RAFI UK 100 United Kingdom
Fundamental/Quality
1 ETF 100
The FTSE RAFI UK 100 index tracks 100 UK stocks. The FTSE RAFI Index Series selects and weights index constituents using four fundamental factors, rather than market capitalisation. The factors are dividends, cash flows, sales and book value.
Index factsheet
FTSE UK Dividend+ United Kingdom
Dividend
1 ETF 50
(31/03/2021)
The FTSE UK Dividend+ index tracks the highest yielding UK stocks.
Index factsheet
MSCI UK Small Cap United Kingdom
Small Cap
1 ETF 249
(31/03/2021)
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 35
(31/03/2021)
The S&P UK High Yield Dividend Aristocrats index tracks UK companies whose dividends have risen in the last 7 consecutive years.
Index factsheet
Solactive Core United Kingdom Large & Mid Cap United Kingdom
Social/Environmental
1 ETF 104
(30/10/2020)
The Solactive Core United Kingdom Large & Mid Cap index tracks the UK equity market and measures the performance of large and mid-cap publicly traded companies which satisfy minimum criteria relating to liquidity and size and excludes companies: (a) engaged in pure coal mining; (b) involved in the production of controversial weapons, such as cluster weapons, anti-personnel mines or biological and chemical weapons; or (c) that, for a continuous period of three years, have been classified as being in breach of at least one of the UN Global Compact principles.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
Vanguard FTSE 250 UCITS ETF DistributingIE00BKX55Q28 2,905 0.10% p.a. Distributing Ireland Full replication
iShares FTSE 250 UCITS ETFIE00B00FV128 1,761 0.40% p.a. Distributing Ireland Optimized sampling
Vanguard FTSE 250 UCITS ETF (GBP) AccumulatingIE00BFMXVQ44 893 0.10% p.a. Accumulating Ireland Full replication
iShares UK Dividend UCITS ETFIE00B0M63060 767 0.40% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 562 0.58% p.a. Accumulating Ireland Optimized sampling
SPDR S&P UK Dividend Aristocrats UCITS ETF (Dist)IE00B6S2Z822 112 0.30% p.a. Distributing Ireland Full replication
Invesco FTSE 250 UCITS ETFIE00B60SWV01 94 0.12% p.a. Accumulating Ireland Unfunded swap
Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 74 0.15% p.a. Distributing Luxembourg Full replication
HSBC FTSE 250 UCITS ETF GBPIE00B64PTF05 54 0.35% p.a. Distributing Ireland Full replication
L&G UK Equity UCITS ETFIE00BFXR5R48 16 0.05% p.a. Accumulating Ireland Optimized sampling
Invesco FTSE RAFI UK 100 UCITS ETFIE00B23LNN70 8 0.39% p.a. Distributing Ireland Full replication
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C (GBP)LU0705291739 1 0.15% p.a. Accumulating 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 4.08% 2.65% 8.27% 17.19% 6.76%
FTSE 100 Minimum Variance 3.98% -0.06% 6.16% 19.17% 12.27%
Solactive Core United Kingdom Large & Mid Cap 3.96% 5.13% 17.43% 21.33% -
FTSE RAFI UK 100 4.39% 9.67% 30.64% 25.73% 0.39%
FTSE UK Dividend+ 7.07% 9.22% 31.82% 42.39% -0.84%
FTSE 250 3.00% 5.28% 25.12% 44.91% 18.63%
MSCI UK Small Cap 3.18% 5.90% 26.65% 48.03% 15.33%
Index   2021
in %
2020
in %
2019
in %
2018
in %
2017
in %
FTSE 100 Minimum Variance -0.06% -5.94% 21.26% -8.33% 9.63%
S&P UK High Yield Dividend Aristocrats 2.65% -16.70% 31.64% -15.05% 3.38%
FTSE 250 4.30% -4.63% 28.62% -13.42% 17.58%
Solactive Core United Kingdom Large & Mid Cap 5.13% -12.09% 17.00% - -
MSCI UK Small Cap 5.22% -5.45% 29.22% -15.47% 20.33%
FTSE UK Dividend+ 8.38% -17.03% 18.67% -14.39% 6.74%
FTSE RAFI UK 100 9.67% -16.74% 13.31% -9.30% 12.57%

Source: justETF.com; As of 31/03/2021; Calculations in GBP 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 3 indices on Europe, which are tracked by 15 ETFs. The UK is weighted with around 21% to 24% in these indices. The total expense ratio (TER) of ETFs on Europe indices is between 0.07% p.a. and 0.35% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI Europe Europe
UK: 21.46%
(30/10/2020)
11 ETFs 434
(31/03/2021)
The MSCI Europe index tracks the leading stocks from 15 European industrial countries.
Index factsheet
STOXX® Europe 50 Europe
UK: 24.20%
(30/10/2020)
1 ETF 50
The STOXX® Europe 50 index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 21.50%
(30/10/2020)
3 ETFs 600
The STOXX® Europe 600 index tracks the 600 largest European companies.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 5,388 0.12% p.a. Distributing Ireland Optimized sampling
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 3,952 0.12% p.a. Accumulating Ireland Optimized sampling
Amundi MSCI Europe UCITS ETF EUR (C)LU1681042609 2,246 0.15% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI Europe UCITS ETF 1CLU0274209237 2,202 0.12% p.a. Accumulating Luxembourg Full replication
Lyxor Core STOXX Europe 600 (DR) UCITS ETF AccLU0908500753 2,138 0.07% p.a. Accumulating Luxembourg Full replication
Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 1,331 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI Europe (DR) UCITS ETF - AccFR0010261198 1,020 0.25% p.a. Accumulating France Full replication
Amundi ETF MSCI Europe UCITS ETF DRLU1437015735 679 0.15% p.a. Accumulating Luxembourg Full replication
iShares STOXX Europe 50 UCITS ETFIE0008470928 432 0.35% p.a. Distributing Ireland Full replication
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 332 0.25% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 295 0.20% p.a. Distributing Luxembourg Full replication
Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 282 0.19% p.a. Accumulating Ireland Unfunded swap
HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 124 0.10% p.a. Distributing Ireland Full replication
Amundi Index MSCI Europe UCITS ETF DR EUR (D)LU1737652310 110 0.15% p.a. Distributing Luxembourg Full replication
Invesco MSCI Europe UCITS ETFIE00B60SWY32 90 0.19% p.a. Accumulating Ireland Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
STOXX® Europe 50 4.66% 2.13% 7.97% 19.89% 19.46%
MSCI Europe 4.26% 2.74% 12.18% 30.41% 21.00%
STOXX® Europe 600 4.19% 2.58% 12.03% 31.89% 22.92%
Index   2021
in %
2020
in %
2019
in %
2018
in %
2017
in %
STOXX® Europe 50 2.45% -0.99% 21.02% -9.49% 13.06%
STOXX® Europe 600 2.46% 3.78% 21.01% -9.81% 14.74%
MSCI Europe 2.84% 2.39% 20.18% -9.67% 14.28%

Source: justETF.com; As of 31/03/2021; Calculations in GBP based on the largest ETF of the respective index.