What is the FTSE 100?

The FTSE 100 is an index of the largest UK companies listed on the London Stock Exchange (LSE). FTSE stands for Financial Times Stock Exchange and is often known as the Footsie.

While the FTSE 100 is the most widely followed index, it’s not the only one on the London Stock Exchange. Others include the FTSE 250, FTSE 350, and FTSE All-Share.

Which companies make up the FTSE 100?

The companies in the FTSE 100 are often called blue-chip stocks because of their high market value. Many of these are household names in the UK, such as BT Group, Rightmove, Tesco and Rolls-Royce.

The companies on the FTSE 100 are reviewed and updated quarterly. To be included, they must:

  • be a public limited company listed on the London Stock Exchange
  • meet the FTSE 100’s liquidity criteria
  • rank among the top 100 companies by market capitalisation.

What is the FTSE 100?

The FTSE 100 is an index of the largest UK companies listed on the London Stock Exchange (LSE). FTSE stands for Financial Times Stock Exchange and is often known as the Footsie.

While the FTSE 100 is the most widely followed index, it’s not the only one on the London Stock Exchange. Others include the FTSE 250, FTSE 350, and FTSE All-Share.

 

Which companies make up the FTSE 100?

The companies in the FTSE 100 are often called blue-chip stocks because of their high market value. Many of these are household names in the UK, such as BT Group, Rightmove, Tesco and Rolls-Royce.

The companies on the FTSE 100 are reviewed and updated quarterly. To be included, they must:

  • be a public limited company listed on the London Stock Exchange
  • meet the FTSE 100’s liquidity criteria
  • rank among the top 100 companies by market capitalisation.

How to invest in the FTSE 100

Individual company shares

You can buy shares in individual companies listed on the index.

Visit the share centre

Index funds

You can invest in a fund and track the performance of the entire FTSE 100 index.

Find them by searching for FTSE 100 on the funds centre.

Visit the funds centre

Exchange-Traded Funds (ETFs)

An ETF is a type of investment that lets you buy a mix of things like stocks or bonds all at once, then you can trade it on the stock market like a regular share.

Visit the ETF centre

Is the FTSE 100 a good investment?

Here are some potential benefits and things to consider before you invest in the FTSE 100.

Benefits of FTSE 100 investing

  • Access a diverse range of UK stocks. You could invest in a wide range of the UK’s largest and most established companies. Backing the future growth of UK business. 
  • Simple to buy and sell shares, funds, and more. It’s an easy way to invest through individual shares, ETFs and index funds.
  • Tightly regulated market. The FTSE 100 operates within the UK’s highly regulated financial environment, overseen by bodies such as the Financial Conduct Authority.
  • Possible dividends from FTSE-listed stocks. Many of the FTSE 100 companies are well-established and pay regular dividends to their shareholders.

Things to consider

  • No guarantee of positive returns. While the FTSE 100 offers exposure to large, well-established UK companies, you’re not guaranteed positive returns.
  • Passive funds can’t out-perform the market. If you’re investing in a FTSE 100 index fund, performance will track the index. You’ll get similar returns to the index itself, but not higher.
  • Active funds can have high fees. Active funds aim to out-perform the market by having fund managers select stocks based on research and analysis. This often costs more.

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you’re not sure about investing, seek financial advice. There will normally be a charge for this. Tax treatment depends on individual circumstances and current UK tax rules.

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Protecting your money

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

Protecting your money

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

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Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

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