FTSE 100

The FTSE 100 (often called the "Footsie") consists of the 100 largest companies listed on the London Stock Exchange.

Global British Business

While it is the UK's main index, its components are truly global. Companies like Shell, BP, and HSBC generate the vast majority of their earnings in US dollars and internationally, making the index a hedge against a weak British Pound.

Sector Concentration

The FTSE 100 is heavily weighted towards Financials, Energy, and Mining. It has very little exposure to the Technology sector, which often makes it perform differently than the tech-heavy US markets.

High Dividend Yields

UK large-cap companies are known for their generous dividend policies. The FTSE 100 historically offers one of the highest dividend yields among major developed market indices.

Context

With its high share of materials, energy, financial and consumer staples companies, the FTSE 100 often behaves differently from technology-heavy indices. Many index companies earn a large part of their revenue outside the UK; sterling exchange rates affect performance in other currencies.