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 equity strategies can be considered.

Alternatively, you may invest in indices on Europe. The Europe indices weight the UK with 23% to 27%.

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: -4.22%
1 year: -17.06%
3 years: -10.01%
5 years: 19.42%

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 20 ETFs. On the FTSE 100 index there are 12 ETFs. On the FTSE All-Share index there are 3 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 12 ETFs 100
The FTSE 100 index tracks the 100 largest UK stocks.
Index factsheet

FTSE All-Share

United Kingdom 3 ETFs 613
(31/08/20)
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 87
(31/08/20)
The MSCI UK index tracks large and mid cap equity market performance of United Kingdom.
Index factsheet

Morningstar UK

United Kingdom 1 ETF 315
(30/06/20)
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 7,405 0.07% p.a. Distributing Ireland Full replication
Vanguard FTSE 100 UCITS ETF DistributingIE00B810Q511 2,737 0.09% p.a. Distributing Ireland Full replication
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-accLU0950670850 1,323 0.20% p.a. Accumulating Luxembourg Full replication
iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 620 0.07% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00B7452L46 348 0.20% p.a. Accumulating Ireland Optimized sampling
HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 278 0.07% p.a. Distributing Ireland Full replication
Lyxor FTSE 100 UCITS ETF - AccLU1650492173 245 0.14% p.a. Accumulating Luxembourg Unfunded swap
Vanguard FTSE 100 UCITS ETF (GBP) AccumulatingIE00BFMXYP42 191 0.09% p.a. Accumulating Ireland Full replication
iShares MSCI UK UCITS ETF (Acc)IE00B539F030 75 0.33% p.a. Accumulating Ireland Full replication
SPDR FTSE UK All Share UCITS ETFIE00BD5FCF91 67 0.20% p.a. Distributing Ireland Optimized sampling
UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 58 0.20% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 57 0.09% p.a. Accumulating Luxembourg Full replication
Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 57 0.09% p.a. Distributing Luxembourg Full replication
Lyxor Core Morningstar UK NT (DR) UCITS ETF - DistLU1781541096 55 0.04% p.a. Distributing Luxembourg Full replication
Xtrackers FTSE All-Share UCITS ETF 1DLU0292097747 42 0.20% p.a. Distributing Luxembourg Optimized sampling
UBS ETF (LU) MSCI UK UCITS ETF (GBP) A-disLU0937836467 29 0.20% p.a. Distributing Luxembourg Full replication
Amundi ETF MSCI UK UCITS ETF EUR (C)FR0010655761 21 0.25% p.a. Accumulating France Unfunded swap
Invesco FTSE 100 UCITS ETFIE00B60SWT88 9 0.09% p.a. Accumulating Ireland Unfunded swap
Lyxor FTSE 100 UCITS ETF - DistLU1650492256 4 0.14% p.a. Distributing Luxembourg Unfunded swap
Amundi ETF FTSE 100 UCITS ETF GBPLU1437025296 3 0.25% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI UK 1.82% -1.36% -9.04% -15.95% -12.30%
FTSE 100 1.21% -1.31% -8.22% -14.73% -10.02%
Morningstar UK 2.02% -0.71% -8.80% -14.29% -
FTSE All-Share 2.40% 0.23% -7.59% -12.85% -8.83%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
Morningstar UK -20.15% 18.48% - - -
MSCI UK -20.09% 16.08% -9.08% 11.56% 18.88%
FTSE 100 -19.91% 17.05% -8.78% 11.91% 19.19%
FTSE All-Share -19.16% 18.81% -9.73% 12.90% 16.51%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest UK ETFs
by total expense ratio (TER)

Show all
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 8 alternative UK indices, which are tracked by 13 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
(31/08/20)
The FTSE UK Dividend+ index tracks the highest yielding UK stocks.
Index factsheet
MSCI UK IMI Extended SRI 5% Capped United Kingdom
Social/Environmental
1 ETF 144
(31/08/20)
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 245
(31/08/20)
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
(31/08/20)
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
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 1,245 0.10% p.a. Distributing Ireland Full replication
iShares FTSE 250 UCITS ETFIE00B00FV128 844 0.40% p.a. Distributing Ireland Optimized sampling
iShares UK Dividend UCITS ETFIE00B0M63060 580 0.40% p.a. Distributing Ireland Full replication
UBS ETF (IE) MSCI UK IMI Socially Responsible UCITS ETF (GBP) A-disIE00BMP3HN93 254 0.28% p.a. Distributing Ireland Full replication
iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 186 0.58% p.a. Accumulating Ireland Optimized sampling
Vanguard FTSE 250 UCITS ETF (GBP) AccumulatingIE00BFMXVQ44 132 0.10% p.a. Accumulating Ireland Full replication
Invesco FTSE 250 UCITS ETFIE00B60SWV01 105 0.12% p.a. Accumulating Ireland Unfunded swap
SPDR S&P UK Dividend Aristocrats UCITS ETF (Dist)IE00B6S2Z822 90 0.30% p.a. Distributing Ireland Full replication
Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 46 0.15% p.a. Distributing Luxembourg Full replication
HSBC FTSE 250 UCITS ETF GBPIE00B64PTF05 40 0.35% p.a. Distributing Ireland Full replication
L&G UK Equity UCITS ETFIE00BFXR5R48 10 0.05% p.a. Accumulating Ireland Optimized sampling
Invesco FTSE RAFI UK 100 UCITS ETFIE00B23LNN70 7 0.39% p.a. Distributing Ireland Full replication
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C (GBP)LU0705291739 3 0.45% p.a. Accumulating Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE RAFI UK 100 1.54% -2.43% -15.90% -21.18% -20.79%
FTSE UK Dividend+ 5.99% 0.40% -17.74% -18.40% -26.31%
Solactive Core United Kingdom Large & Mid Cap 1.61% -1.56% -9.13% -16.18% -
MSCI UK Small Cap 4.66% 2.75% -9.34% -8.08% -6.85%
FTSE 250 5.44% 4.97% -7.00% -6.37% -3.32%
MSCI UK IMI Extended SRI 5% Capped 3.98% 3.16% -1.62% -5.09% -1.72%
FTSE 100 Minimum Variance 2.49% 4.64% -2.27% -4.46% -0.19%
S&P UK High Yield Dividend Aristocrats 1.21% 0.40% -9.91% -4.24% -10.55%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
FTSE UK Dividend+ -29.64% 18.67% -14.39% 6.74% 8.52%
FTSE RAFI UK 100 -27.08% 13.31% -9.30% 12.57% 28.06%
MSCI UK Small Cap -20.26% 29.22% -15.47% 20.33% 6.28%
Solactive Core United Kingdom Large & Mid Cap -20.04% 17.00% - - -
S&P UK High Yield Dividend Aristocrats -19.96% 31.64% -15.05% 3.38% 8.27%
FTSE 250 -17.94% 28.62% -13.42% 17.58% 6.40%
MSCI UK IMI Extended SRI 5% Capped -12.55% 22.85% -10.48% 12.66% 12.33%
FTSE 100 Minimum Variance -11.53% 21.26% -8.33% 9.63% 7.35%

Source: justETF.com; As of 31/08/20; 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 14 ETFs. The UK is weighted with around 23% to 27% 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: 23.46%
(29/05/2020)
10 ETFs 435
(31/08/20)
The MSCI Europe index tracks the leading stocks from 15 European industrial countries.
Index factsheet
STOXX® Europe 50 Europe
UK: 26.60%
(29/05/2020)
1 ETF 50
The STOXX® Europe 50 index tracks 50 European large cap stocks.
Index factsheet
STOXX® Europe 600 Europe
UK: 23.20%
(29/05/2020)
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 5,128 0.12% p.a. Distributing Ireland Optimized sampling
iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 2,132 0.12% p.a. Accumulating Ireland Optimized sampling
Amundi MSCI Europe UCITS ETF EUR (C)LU1681042609 2,113 0.15% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI Europe UCITS ETF 1CLU0274209237 2,101 0.12% p.a. Accumulating Luxembourg Full replication
Lyxor Core STOXX Europe 600 (DR) UCITS ETF AccLU0908500753 1,669 0.07% p.a. Accumulating Luxembourg Full replication
Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 1,273 0.20% p.a. Accumulating Luxembourg Full replication
Lyxor MSCI Europe (DR) UCITS ETF - DistFR0010261198 1,102 0.25% p.a. Distributing France Full replication
iShares STOXX Europe 50 UCITS ETFIE0008470928 471 0.35% p.a. Distributing Ireland Full replication
SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 375 0.25% p.a. Accumulating Ireland Full replication
UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 319 0.20% p.a. Distributing Luxembourg Full replication
Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 260 0.19% p.a. Accumulating Ireland Unfunded swap
Invesco MSCI Europe UCITS ETFIE00B60SWY32 232 0.19% p.a. Accumulating Ireland Unfunded swap
HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 144 0.10% p.a. Distributing Ireland Full replication
Amundi Index MSCI Europe UCITS ETF DR EUR (D)LU1737652310 48 0.15% p.a. Distributing Luxembourg Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
STOXX® Europe 50 0.41% 1.55% 2.55% -4.99% 2.98%
MSCI Europe 1.84% 3.51% 2.46% -4.34% 1.59%
STOXX® Europe 600 2.54% 4.70% 4.20% -2.11% 4.14%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Europe -7.41% 20.18% -9.67% 14.28% 19.78%
STOXX® Europe 50 -7.37% 21.02% -9.49% 13.06% 17.71%
STOXX® Europe 600 -5.60% 21.01% -9.81% 14.74% 18.93%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.