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 4 indices, which are tracked by ETFs. Besides these indices 8 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 27% to 40%.

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: 4.05%
1 year: 5.73%
3 years: 24.53%
5 years: 32.46%

Indices in comparison

The best indices for ETFs on UK

For an investment in the UK stock market, 4 indices tracked by 19 ETFs are available. On the FTSE 100 index there are 11 ETFs. On the FTSE All-Share index there are 3 ETFs. On the MSCI UK index there are 4 ETFs. On the Morningstar UK NR 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 3 ETFs 635
(31/03/19)
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 4 ETFs 96
(31/03/19)
The MSCI UK index tracks large and mid cap equity market performance of United Kingdom.
Index factsheet

Morningstar UK NR

United Kingdom 1 ETF
The Morningstar UK NR index tracks mid and large cap equities of the United Kingdom.
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares Core FTSE 100 UCITS ETF (Dist)IE0005042456 7,133 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETFIE00B810Q511 2,720 0.09% p.a. Distributing Ireland Full replication
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 572 0.07% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 464 0.20% p.a. Accumulating Ireland Optimized sampling
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 395 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor FTSE 100 UCITS ETF C-GBPLU1650492173 204 0.15% p.a. Accumulating Luxembourg Unfunded swap
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 203 0.07% p.a. Distributing Ireland Full replication
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 113 0.33% p.a. Accumulating Ireland Full replication
Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 87 0.09% p.a. Accumulating Luxembourg Full replication
Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 82 0.09% p.a. Distributing Luxembourg Full replication
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 64 0.20% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE All-Share UCITS ETF 1DLU0292097747 59 0.20% p.a. Distributing Luxembourg Optimized sampling
SPDR FTSE UK All Share UCITS ETF (Dist)IE00BD5FCF91 57 0.20% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI UK UCITS ETF - EUR (C)FR0010655761 41 0.25% p.a. Accumulating France Unfunded swap
Lyxor Core Morningstar UK NT (DR) UCITS ETFLU1781541096 25 0.04% p.a. Distributing Luxembourg Full replication
Invesco FTSE 100 UCITS ETFIE00B60SWT88 7 0.20% p.a. Accumulating Ireland Unfunded swap
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 6 0.20% p.a. Distributing Luxembourg Full replication
Amundi ETF FTSE 100 UCITS ETF GBPLU1437025296 4 0.25% p.a. Accumulating Luxembourg Unfunded swap
Vanguard FTSE 100 UCITS ETF (GBP) AccumulatingIE00BFMXYP42 2 0.09% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE All-Share -3.60% 1.88% 4.14% 0.20% 19.35%
Morningstar UK NR -3.73% 1.57% 4.07% 0.60% -
MSCI UK -4.19% 1.66% 4.15% 1.00% 18.73%
FTSE 100 -4.02% 2.03% 4.67% 1.39% 20.28%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI UK 10.36% -9.08% 11.56% 18.88% -2.39%
FTSE 100 10.84% -8.78% 11.91% 19.19% -1.59%
FTSE All-Share 10.93% -9.73% 12.90% 16.51% 0.76%
Morningstar UK NR 11.09% - - - -

Source: justETF.com; As of 31/08/19; Calculations in GBP 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 8 alternative UK indices, which are tracked by 13 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 100 Equally Weighted United Kingdom
Equal Weighted
1 ETF 100
The FTSE 100 Semi Annually Equally Weighted Net Tax Index tracks the 100 largest UK stocks. All constituents in the index are equally weighted at rebalancing (semi-annually).
Index factsheet
FTSE 100 Minimum Variance United Kingdom
Low Volatility/Risk Weighted
1 ETF 67
(31/03/19)
The FTSE 100 Minimum Variance index tracks the 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 (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 RAFI UK 100 United Kingdom
Fundamental/Quality
1 ETF 100
The FTSE RAFI UK 100 (total return) index tracks 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 49
(28/02/19)
The FTSE UK Dividend+ index tracks the 50 highest yielding UK stocks.
Index factsheet
MSCI UK IMI Extended SRI 5% Capped United Kingdom
Social/Environmental
1 ETF 173
(31/03/19)
The MSCI UK IMI Extended SRI 5% Issuer Capped index tracks socially or environmentally responsible UK companies.
Index factsheet
MSCI UK Small Cap United Kingdom
Small Cap
1 ETF 267
(28/02/19)
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 40
(31/03/19)
The S&P UK High Yield Dividend Aristocrats index tracks the highest dividend-yielding UK companies.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
Vanguard FTSE 250 UCITS ETFIE00BKX55Q28 1,086 0.10% p.a. Distributing Ireland Full replication
iShares FTSE 250 UCITS ETFIE00B00FV128 830 0.40% p.a. Distributing Ireland Optimized sampling
iShares UK Dividend UCITS ETFIE00B0M63060 692 0.40% p.a. Distributing Ireland Full replication
UBS ETF (IE) MSCI UK IMI Socially Responsible UCITS ETF (GBP) A-disIE00BMP3HN93 195 0.28% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 149 0.58% p.a. Accumulating Ireland Optimized sampling
SPDR S&P UK Dividend Aristocrats UCITS ETFIE00B6S2Z822 90 0.30% p.a. Distributing Ireland Full replication
Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 40 0.15% p.a. Distributing Luxembourg Full replication
HSBC FTSE 250 UCITS ETF GBPIE00B64PTF05 40 0.35% p.a. Distributing Ireland Full replication
Xtrackers FTSE 100 Equal Weight UCITS ETF 1DIE00BZ0CYG46 16 0.25% p.a. Distributing Ireland Full replication
Invesco FTSE 250 UCITS ETFIE00B60SWV01 14 0.25% p.a. Accumulating Ireland Unfunded swap
Invesco FTSE RAFI UK 100 UCITS ETFIE00B23LNN70 11 0.39% p.a. Distributing Ireland Full replication
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C (GBP)LU0705291739 6 0.45% p.a. Accumulating Luxembourg Full replication
Vanguard FTSE 250 UCITS ETF (GBP) AccumulatingIE00BFMXVQ44 1 0.10% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE UK Dividend+ -2.54% 2.10% -4.70% -11.24% -4.81%
MSCI UK Small Cap -2.12% -0.24% 1.92% -7.32% 17.92%
FTSE RAFI UK 100 -5.25% -0.27% -0.89% -4.49% 20.56%
FTSE 250 -1.10% 3.02% 2.95% -3.57% 18.36%
S&P UK High Yield Dividend Aristocrats -2.04% 2.22% 0.06% -3.37% -4.44%
FTSE 100 Equally Weighted -3.57% 2.41% 3.06% -1.78% 17.35%
MSCI UK IMI Extended SRI 5% Capped -2.95% 3.30% 5.72% 1.03% 15.93%
FTSE 100 Minimum Variance -1.60% 3.55% 4.30% 2.31% 8.22%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
FTSE UK Dividend+ 2.83% -14.39% 6.74% 8.52% 0.73%
FTSE RAFI UK 100 4.82% -9.30% 12.57% 28.06% -8.42%
S&P UK High Yield Dividend Aristocrats 10.63% -15.05% 3.38% 8.27% 2.15%
FTSE 100 Equally Weighted 11.23% -9.62% 12.89% 12.76% -
FTSE 100 Minimum Variance 12.29% -8.33% 9.63% 7.35% 5.20%
MSCI UK Small Cap 12.57% -15.47% 20.33% 6.28% 14.16%
FTSE 250 13.10% -13.42% 17.58% 6.40% 10.92%
MSCI UK IMI Extended SRI 5% Capped 13.19% -10.48% 12.66% 12.33% 4.83%

Source: justETF.com; As of 31/08/19; 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 4 indices on Europe, which are tracked by 14 ETFs. The UK is weighted with around 27% to 40% in the Europe indices. The total expense ratio (TER) of ETFs on Europe indices is between 0.07% p.a. and 0.40% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSEurofirst 100 Europe
UK: 39.48%
(31/03/2019)
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: 27.18%
(31/03/2019)
9 ETFs 439
(31/03/19)
The MSCI Europe index tracks the leading stocks from 16 European developed countries.
Index factsheet
STOXX® Europe 50 Europe
UK: 30.40%
(31/03/2019)
1 ETF 50
The STOXX® Europe 50 (total return) index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 26.60%
(31/03/2019)
3 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 GBP
TER
in %
Use of profits Fund domicile Replication method
iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 5,122 0.12% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI Europe Index UCITS ETF 1CLU0274209237 2,212 0.25% p.a. Accumulating Luxembourg Full replication
Amundi MSCI Europe UCITS ETF - EUR (C)LU1681042609 2,093 0.15% p.a. Accumulating Luxembourg Unfunded swap
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 1,342 0.12% p.a. Accumulating Ireland Optimized sampling
Lyxor MSCI Europe UCITS ETF D-EURFR0010261198 1,258 0.25% p.a. Distributing France Full replication
Lyxor Core Stoxx Europe 600 (DR) UCITS ETFLU0908500753 1,106 0.07% p.a. Accumulating Luxembourg Full replication
Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 1,059 0.20% p.a. Accumulating Luxembourg Optimized sampling
iShares STOXX Europe 50 UCITS ETFIE0008470928 589 0.35% p.a. Distributing Ireland Full replication
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 494 0.25% p.a. Accumulating Ireland Full replication
Invesco MSCI Europe UCITS ETFIE00B60SWY32 411 0.19% p.a. Accumulating Ireland Unfunded swap
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 275 0.20% p.a. Distributing Luxembourg Full replication
Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 219 0.19% p.a. Accumulating Ireland Unfunded swap
HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 107 0.20% p.a. Distributing Ireland Full replication
iShares FTSEurofirst 100 UCITS ETFIE0030974079 22 0.40% p.a. Distributing Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSEurofirst 100 -3.26% 4.31% 8.31% 3.01% 27.23%
STOXX® Europe 600 -2.48% 5.61% 10.11% 3.51% 29.14%
MSCI Europe -2.58% 5.42% 9.92% 3.70% 28.95%
STOXX® Europe 50 -2.18% 5.72% 11.87% 7.50% 29.40%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
FTSEurofirst 100 14.61% -10.13% 13.22% 22.71% -1.68%
MSCI Europe 16.64% -9.67% 14.28% 19.78% 1.96%
STOXX® Europe 600 17.00% -9.81% 14.74% 18.93% 3.09%
STOXX® Europe 50 18.27% -9.49% 13.06% 17.71% 0.37%

Source: justETF.com; As of 31/08/19; Calculations in GBP based on the largest ETF of the respective index.