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 4 alternative indices on small and mid caps as well as equity strategies can be considered.
Alternatively, you may invest in indices on Europe.
Performance of UK stocks (FTSE 100)
1 month: 0.26%
1 year: 15.97%
3 years: 29.75%
5 years: 38.14%
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 14 ETFs. On the FTSE 100 index there are 10 ETFs. On the FTSE All-Share index there are 2 ETFs. On the MSCI UK index there is 1 ETF. 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 | 10 ETFs | 100 | The FTSE 100 index tracks the 100 largest UK stocks. Index factsheet |
FTSE All-Share | United Kingdom | 2 ETFs | 575 (31.08.23) | 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 | 1 ETF | 79 (28.06.24) | The MSCI UK index tracks large and mid cap equity market performance of United Kingdom. Index factsheet |
Morningstar UK | United Kingdom | 1 ETF | 275 (31.08.23) | The Morningstar UK index tracks mid and large cap equities of the United Kingdom. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares Core FTSE 100 UCITS ETF (Dist)IE0005042456 | 13,976 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| Vanguard FTSE 100 UCITS ETF DistributingIE00B810Q511 | 4,488 | 0.09% p.a. | Distributing | Ireland | Full replication | |
| iShares Core FTSE 100 UCITS ETF GBP (Acc)IE00B53HP851 | 2,635 | 0.07% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard FTSE 100 UCITS ETF (GBP) AccumulatingIE00BFMXYP42 | 1,524 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
| HSBC FTSE 100 UCITS ETF GBPIE00B42TW061 | 663 | 0.07% p.a. | Distributing | Ireland | Full replication | |
| Lyxor Core UK Equity All Cap (DR) UCITS ETF - DistLU1781541096 | 491 | 0.04% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR FTSE UK All Share UCITS ETFIE00B7452L46 | 472 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi FTSE 100 UCITS ETF AccLU1650492173 | 316 | 0.14% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI UK UCITS ETF (Acc)IE00B539F030 | 116 | 0.33% p.a. | Accumulating | Ireland | Full replication | |
| Amundi FTSE 100 UCITS ETF DistLU1650492256 | 105 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| SPDR FTSE UK All Share UCITS ETFIE00BD5FCF91 | 89 | 0.20% p.a. | Distributing | Ireland | Optimized sampling | |
| UBS ETF (LU) FTSE 100 UCITS ETF (GBP) A-disLU0136242590 | 81 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Xtrackers FTSE 100 UCITS ETF Income 1DLU0292097234 | 71 | 0.09% p.a. | Distributing | Luxembourg | Full replication | |
| Xtrackers FTSE 100 UCITS ETF 1CLU0838780707 | 63 | 0.09% p.a. | Accumulating | Luxembourg | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| Morningstar UK | -0.22% | 4.06% | 9.94% | 13.87% | 25.80% | |
| FTSE All-Share | -0.15% | 4.59% | 10.12% | 14.22% | 24.81% | |
| MSCI UK | 0.01% | 4.47% | 10.48% | 14.26% | 33.85% | |
| FTSE 100 | 0.04% | 4.55% | 10.80% | 14.28% | 31.48% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| Morningstar UK | 9.94% | 9.62% | -4.15% | 26.62% | -16.10% | |
| FTSE All-Share | 10.12% | 9.84% | -5.07% | 26.30% | -14.85% | |
| MSCI UK | 10.48% | 9.44% | 1.13% | 27.49% | -18.19% | |
| FTSE 100 | 10.80% | 9.96% | -0.93% | 26.60% | -16.25% |
Source: justETF.com; As of 30.06.24; Calculations in EUR based on the largest ETF of the respective index.
The best UK ETFs
by 1 year return
| 1 | iShares Core FTSE 100 UCITS ETF (Dist) | 14.28% |
| 2 | iShares MSCI UK UCITS ETF (Acc) | 14.26% |
| 3 | Xtrackers FTSE 100 UCITS ETF 1C | 14.25% |
The cheapest UK ETFs
by total expense ratio (TER)
| 1 | Lyxor Core UK Equity All Cap (DR) UCITS ETF - Dist | 0.04% p.a. |
| 2 | HSBC FTSE 100 UCITS ETF GBP | 0.07% p.a. |
| 3 | iShares Core FTSE 100 UCITS ETF (Dist) | 0.07% p.a. |
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 4 alternative UK indices, which are tracked by 7 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 250 | United Kingdom Mid Cap | 4 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 UK Dividend+ | United Kingdom Dividend | 1 ETF | 50 (31.08.23) | The FTSE UK Dividend+ index tracks the highest yielding UK stocks. Index factsheet |
| MSCI UK Small Cap | United Kingdom Small Cap | 1 ETF | 229 (28.06.24) | 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 | 36 (31.08.23) | The S&P UK High Yield Dividend Aristocrats index tracks UK companies whose dividends have risen in the last 7 consecutive years. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Vanguard FTSE 250 UCITS ETF DistributingIE00BKX55Q28 | 2,190 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| iShares UK Dividend UCITS ETFIE00B0M63060 | 1,012 | 0.40% p.a. | Distributing | Ireland | Full replication | |
| iShares FTSE 250 UCITS ETFIE00B00FV128 | 955 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| Vanguard FTSE 250 UCITS ETF (GBP) AccumulatingIE00BFMXVQ44 | 578 | 0.10% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI UK Small Cap UCITS ETF (Acc)IE00B3VWLG82 | 210 | 0.58% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR S&P UK Dividend Aristocrats UCITS ETF (Dist)IE00B6S2Z822 | 124 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers FTSE 250 UCITS ETF 1DLU0292097317 | 36 | 0.15% p.a. | Distributing | 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 | -0.65% | 3.58% | 6.43% | 10.60% | 6.91% | |
| MSCI UK Small Cap | -2.43% | 2.29% | 6.53% | 14.84% | -8.41% | |
| FTSE 250 | -1.07% | 3.56% | 7.46% | 15.18% | 0.05% | |
| FTSE UK Dividend+ | -0.19% | 5.32% | 9.90% | 19.34% | 21.94% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| S&P UK High Yield Dividend Aristocrats | 6.43% | 8.38% | -13.28% | 22.28% | -21.13% | |
| MSCI UK Small Cap | 6.53% | 11.40% | -26.88% | 21.88% | -10.52% | |
| FTSE 250 | 7.46% | 10.13% | -21.80% | 24.81% | -9.75% | |
| FTSE UK Dividend+ | 9.90% | 8.30% | -6.96% | 31.71% | -21.50% |
Source: justETF.com; As of 30.06.24; Calculations in EUR 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 26 ETFs. The total expense ratio (TER) of ETFs on Europe indices is between 0.07% p.a. and 0.52% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Europe | Europe UK: 24.00% (30/11/2022) | 13 ETFs | 418 (28.06.24) | The MSCI Europe index tracks the leading stocks from 15 European industrial countries. Index factsheet |
| MSCI Europe ex EMU | Europe UK: 47.59% (30/11/2022) | 1 ETF | 193 (28.06.24) | The MSCI Europe ex EMU index tracks leading stocks in European countries outside of the eurozone. Index factsheet |
| STOXX® Europe 50 | Europe UK: 27.70% (30/11/2022) | 4 ETFs | 50 | The STOXX® Europe 50 index tracks 50 European large cap stocks. Index factsheet |
| STOXX® Europe 600 | Europe UK: 24.50% (30/11/2022) | 8 ETFs | 600 | The STOXX® Europe 600 index tracks the 600 largest European companies. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Amundi Stoxx Europe 600 UCITS ETF AccLU0908500753 | 7,913 | 0.07% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares Core MSCI Europe UCITS ETF EUR (Dist)IE00B1YZSC51 | 7,790 | 0.12% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares Core MSCI Europe UCITS ETF EUR (Acc)IE00B4K48X80 | 7,532 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares STOXX Europe 600 UCITS ETF (DE)DE0002635307 | 6,155 | 0.20% p.a. | Distributing | Germany | Full replication | |
| Xtrackers MSCI Europe UCITS ETF 1CLU0274209237 | 4,297 | 0.12% p.a. | Accumulating | Luxembourg | Full replication | |
| Xtrackers STOXX Europe 600 UCITS ETF 1CLU0328475792 | 2,564 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi Index ETF MSCI Europe UCITS ETF DR (C)LU1437015735 | 2,038 | 0.12% p.a. | Accumulating | Luxembourg | Full replication | |
| Deka MSCI Europe UCITS ETFDE000ETFL284 | 1,050 | 0.30% p.a. | Distributing | Germany | Full replication | |
| Amundi MSCI Europe II UCITS ETF AccFR0010261198 | 767 | 0.25% p.a. | Accumulating | France | Full replication | |
| BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550193 | 711 | 0.20% p.a. | Accumulating | France | Unfunded swap | |
| iShares STOXX Europe 50 UCITS ETFIE0008470928 | 660 | 0.35% p.a. | Distributing | Ireland | Full replication | |
| iShares STOXX Europe 600 UCITS ETF (DE) EUR (Acc)DE000A2QP4B6 | 641 | 0.20% p.a. | Accumulating | Germany | Full replication | |
| Amundi ETF STOXX Europe 50 UCITS ETF EUR (C)FR0010790980 | 531 | 0.15% p.a. | Accumulating | France | Unfunded swap | |
| Invesco STOXX Europe 600 UCITS ETFIE00B60SWW18 | 519 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| Amundi Index MSCI Europe UCITS ETF DR EUR (D)LU1737652310 | 359 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi ETF MSCI Europe ex EMU UCITS ETF EUR (C)FR0010821819 | 331 | 0.30% p.a. | Accumulating | France | Unfunded swap | |
| UBS ETF (LU) MSCI Europe UCITS ETF (EUR) A-disLU0446734104 | 304 | 0.10% p.a. | Distributing | Luxembourg | Full replication | |
| SPDR MSCI Europe UCITS ETFIE00BKWQ0Q14 | 259 | 0.25% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI Europe UCITS ETF EURIE00B5BD5K76 | 189 | 0.10% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers Stoxx Europe 600 UCITS ETF 1DLU2581375156 | 179 | 0.07% p.a. | Distributing | Luxembourg | Full replication | |
| iShares Core MSCI Europe UCITS ETF EUR (Acc)IE000MAO75G5 | 150 | 0.12% p.a. | Accumulating | Ireland | Optimized sampling | |
| BNP Paribas Easy STOXX Europe 600 UCITS ETFFR0011550672 | 138 | 0.20% p.a. | Distributing | France | Unfunded swap | |
| iShares STOXX Europe 50 UCITS ETF (DE)DE0005933949 | 122 | 0.52% p.a. | Distributing | Germany | Full replication | |
| Xtrackers MSCI Europe UCITS ETF 1DLU1242369327 | 116 | 0.12% p.a. | Distributing | Luxembourg | Full replication | |
| Deka STOXX Europe 50 UCITS ETFDE000ETFL250 | 90 | 0.19% p.a. | Distributing | Germany | Full replication | |
| Invesco MSCI Europe UCITS ETFIE00B60SWY32 | 32 | 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 600 | -0.80% | 0.97% | 8.97% | 13.82% | 23.02% | |
| MSCI Europe | -0.62% | 1.35% | 9.33% | 13.98% | 25.13% | |
| STOXX® Europe 50 | 0.68% | 2.46% | 12.01% | 15.20% | 38.41% | |
| MSCI Europe ex EMU | 1.23% | 4.41% | 9.68% | 15.51% | 27.70% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| STOXX® Europe 600 | 8.97% | 16.04% | -10.41% | 25.27% | -1.79% | |
| MSCI Europe | 9.33% | 16.13% | -9.71% | 26.11% | -3.09% | |
| MSCI Europe ex EMU | 9.68% | 12.57% | -6.74% | 27.82% | -6.18% | |
| STOXX® Europe 50 | 12.01% | 15.04% | -2.33% | 26.55% | -6.30% |
Source: justETF.com; As of 30.06.24; Calculations in EUR based on the largest ETF of the respective index.