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 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 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 are tracked by ETFs
on the UK stock market
The best indices for UK ETFs

Performance of UK stocks (FTSE 100)

1 month: 2.86%
1 year: 8.78%
3 years: 33.84%
5 years: 35.17%

Indices in comparison

The best indices for ETFs on UK

For an investment in the UK stock market, 3 indices tracked by 17 ETFs are available. On the FTSE 100 index there are 10 ETFs. On the FTSE All-Share index there are 3 ETFs. On the MSCI UK index there are 4 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 10 ETFs 100
The FTSE 100 index tracks the 100 largest UK stocks.
Index factsheet

FTSE All-Share

United Kingdom 3 ETFs 636
(28/02/19)
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
(28/02/19)
The MSCI UK index tracks large and mid cap equity market performance of 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 6,357 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETFIE00B810Q511 2,670 0.09% p.a. Distributing Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 482 0.20% p.a. Accumulating Ireland Optimized sampling
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 474 0.07% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 392 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor FTSE 100 UCITS ETF C-GBPLU1650492173 243 0.15% p.a. Accumulating Luxembourg Unfunded swap
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 192 0.07% p.a. Distributing Ireland Full replication
Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 122 0.09% p.a. Accumulating Luxembourg Full replication
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 116 0.33% p.a. Accumulating Ireland Full replication
Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 101 0.09% p.a. Distributing Luxembourg Full replication
Amundi ETF MSCI UK UCITS ETF - EUR (C)FR0010655761 80 0.25% p.a. Accumulating France Unfunded swap
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 71 0.20% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE All-Share UCITS ETF 1DLU0292097747 68 0.20% p.a. Distributing Luxembourg Optimized sampling
SPDR FTSE UK All Share UCITS ETF (Dist)IE00BD5FCF91 11 0.20% p.a. Distributing Ireland Optimized sampling
Invesco FTSE 100 UCITS ETFIE00B60SWT88 9 0.20% p.a. Accumulating Ireland Unfunded swap
Amundi ETF FTSE 100 UCITS ETF GBPLU1437025296 6 0.25% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 6 0.20% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE All-Share 5.17% 2.11% -5.79% 1.45% 29.54%
MSCI UK 5.61% 1.73% -5.37% 1.82% 29.86%
FTSE 100 5.57% 1.86% -5.56% 1.99% 30.96%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
FTSE 100 5.89% -8.78% 11.91% 19.19% -1.59%
MSCI UK 5.96% -9.08% 11.56% 18.88% -2.39%
FTSE All-Share 6.53% -9.73% 12.90% 16.51% 0.76%

Source: justETF.com; As of 28/02/19; 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 12 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 101
(29/12/17)
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 70
(29/12/17)
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
5 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
(29/12/17)
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 168
(29/12/17)
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
(28/02/19)
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 1,172 0.10% p.a. Distributing Ireland Full replication
iShares FTSE 250 UCITS ETFIE00B00FV128 1,009 0.40% p.a. Distributing Ireland Optimized sampling
iShares UK Dividend UCITS ETFIE00B0M63060 674 0.40% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 151 0.58% p.a. Accumulating Ireland Optimized sampling
Invesco FTSE 250 UCITS ETFIE00B60SWV01 118 0.25% p.a. Accumulating Ireland Unfunded swap
UBS ETF (IE) MSCI UK IMI Socially Responsible UCITS ETF (GBP) A-disIE00BMP3HN93 108 0.28% p.a. Distributing Ireland Full replication
SPDR S&P UK Dividend Aristocrats UCITS ETFIE00B6S2Z822 86 0.30% p.a. Distributing Ireland Full replication
Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 45 0.15% p.a. Distributing Luxembourg Full replication
HSBC FTSE 250 UCITS ETF GBPIE00B64PTF05 39 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 RAFI UK 100 UCITS ETFIE00B23LNN70 10 0.39% p.a. Distributing Ireland Full replication
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C (GBP)LU0705291739 5 0.45% p.a. Accumulating Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI UK Small Cap 3.91% 3.59% -9.69% -2.30% 26.50%
FTSE UK Dividend+ 2.06% -0.99% -8.22% -1.34% 10.94%
FTSE 250 3.62% 3.36% -6.98% 0.00% 25.03%
FTSE RAFI UK 100 4.84% 0.95% -6.01% 0.35% 40.17%
MSCI UK IMI Extended SRI 5% Capped 4.49% 1.09% -6.44% 0.45% 24.48%
FTSE 100 Equally Weighted 3.81% 2.83% -6.41% 0.83% 27.37%
S&P UK High Yield Dividend Aristocrats 4.58% 2.38% -4.95% 0.99% 7.36%
FTSE 100 Minimum Variance 3.80% 2.60% -3.83% 5.04% 14.43%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
FTSE RAFI UK 100 5.76% -9.30% 12.57% 28.06% -8.42%
MSCI UK IMI Extended SRI 5% Capped 7.07% -10.48% 12.66% 12.33% 4.83%
FTSE 100 Minimum Variance 7.66% -8.33% 9.63% 7.35% 5.20%
FTSE UK Dividend+ 7.90% -14.39% 6.74% 8.52% 0.73%
FTSE 100 Equally Weighted 7.93% -9.62% 12.89% 12.76% -
FTSE 250 9.86% -13.42% 17.58% 6.40% 10.92%
MSCI UK Small Cap 10.45% -15.47% 20.33% 6.28% 14.16%
S&P UK High Yield Dividend Aristocrats 10.56% -15.05% 3.38% 8.27% 2.15%

Source: justETF.com; As of 28/02/19; 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 15 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 0.40% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSEurofirst 100 Europe
UK: 40.59%
(29/12/2017)
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: 28.02%
(29/12/2017)
10 ETFs 439
(28/02/19)
The MSCI Europe index tracks the leading stocks from 15 European industrial countries.
Index factsheet
STOXX® Europe 50 Europe
UK: 32.90%
(29/12/2017)
1 ETF 50
The STOXX® Europe 50 (total return) index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 27.30%
(29/12/2017)
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 3,947 0.12% p.a. Distributing Ireland Optimized sampling
Xtrackers MSCI Europe Index UCITS ETF 1CLU0274209237 2,014 0.25% p.a. Accumulating Luxembourg Full replication
Amundi MSCI Europe UCITS ETF - EUR (C)LU1681042609 1,778 0.15% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI Europe UCITS ETF D-EURFR0010261198 1,598 0.25% p.a. Distributing France Full replication
Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 1,144 0.20% p.a. Accumulating Luxembourg Optimized sampling
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 1,095 0.12% p.a. Accumulating Ireland Optimized sampling
Lyxor Core Stoxx Europe 600 (DR) UCITS ETFLU0908500753 732 0.07% p.a. Accumulating Luxembourg Full replication
iShares STOXX Europe 50 UCITS ETFIE0008470928 545 0.35% p.a. Distributing Ireland Full replication
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 496 0.25% p.a. Accumulating Ireland Full replication
Invesco MSCI Europe UCITS ETFIE00B60SWY32 397 0.19% p.a. Accumulating Ireland Unfunded swap
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 239 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 126 0.20% p.a. Distributing Ireland Full replication
iShares FTSEurofirst 100 UCITS ETFIE0030974079 23 0.40% p.a. Distributing Ireland Full replication
Xtrackers ESG MSCI Europe UCITS ETF 1CIE00BFMNHK08 16 0.20% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
STOXX® Europe 600 4.17% 1.84% -7.81% -1.73% 33.95%
FTSEurofirst 100 4.89% 1.54% -7.15% -1.72% 34.82%
MSCI Europe 4.30% 1.65% -7.48% -1.50% 34.32%
STOXX® Europe 50 5.72% 1.25% -5.87% 0.07% 31.45%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
STOXX® Europe 50 5.72% -9.49% 13.06% 17.71% 0.37%
STOXX® Europe 600 5.72% -9.86% 15.31% 18.90% 3.33%
FTSEurofirst 100 5.82% -10.13% 13.22% 22.71% -1.68%
MSCI Europe 6.12% -9.67% 14.28% 19.78% 1.96%

Source: justETF.com; As of 28/02/19; Calculations in GBP based on the largest ETF of the respective index.