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.

Expert Tip

Due to its heavy weighting in materials and energy, the FTSE 100 often acts as a "value" index. It can be a useful diversifyer when tech stocks are overvalued, as it often performs well during periods of rising commodity prices.