FTSE 100 Index

FTSE 100 Index

The FTSE 100 Index is a share index for the 100 London Stock Exchange-listed United Kingdom companies with the highest market capitalisation. It is considered a strong indicator for of how well large businesses regulated by UK company law are doing.

A lot of different financial instruments have been development that allow traders to speculate on the FTSE 100 Index. Among retail traders, using Contracts for Differences (CFDs) based on the FTSE 100 is a popular choice since they make it easy to profit from both upwards and downwards movements. A lot of online brokers and trading platforms offer this type of CFDs. Another options it to invest in a fund comprised to track the FTSE 100. This is especially popular among longer-term UK investors, since CFDs are more suitable for daytrading.

About the FTSE 100 Index

Index type: Large cap

Number of constituents: 100

Weighting method: Capitalisation-weighted

The Financial Times Stock Exchange 100 Index (FTSE 100) was created in 1984 and is maintained by the FTSE Group, a wholly owned subsidiary of the London Stock Exchange Group.

The constituents of the index are the 100 companies listed on the London Stock Exchange with the highest market capitalisation.

In May 2020, the market cap for the index was £1.814 trillion. 

Publication

The FTSE 100 Index is calculated in real time and published every second when the market is open.

(During trading days, continuous trading on the London Stock Exchange (LSE) starts at 08:00 and ends at 16:30 when the closing auction starts. Closing values are taken at 16:35.)

Trivia

  • The FTSE 100 Index is nicknamed ”Footsie”.
  • The FTSE Group originated as a joint venture between the London Stock Exchange and the newspaper Financial Times.
  • When the market capitalisation weighted FTSE 100 Index was launched on 3 January 1984, it quickly turned into a major performance benchmark for investors and largely replaced the much older price-weighted FT30 Index which had been around since 1935.
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Which share companies are in the FTSE 100 Index?

The FTSE 100 Index is comprised of the largest (by full market value) qualifying UK companies listed on the London Stock Exchange. The full market value is calculated by taking the share price of the company and multiplying it with the total number of issued shares.

Examples of requirements that must be fullfilled before a company can be included in the FTSE 100 Index:

  • Must have a full listing on the London Stock Echange with a Sterling or Euro denominated price on the Stock Electronic Trading Service.
  • Meeting the requirements for nationality.
  • Meeting the requirements for free float.
  • Meeting the requirements for liquidity.

Further down in this page, you can see a list of all the FTSE 100 Index companies as per March 2021.

Weighting

For the FTSE 100 Index, share prices are weighted by free-float capitalisation. The free-float capitalisation of a company is its market capitalisation multiplied by its free float adjustment factor. The free float adjustment factor represents the percentage of all issued shares that are readily available for trading. Examples of shares not readily available for trading are restricted shares held by company insiders.

The basic formula:

Record highs

When the FTSE 100 Index was launched in 1984, the base level was set at 1,000.

So far, the highest intraday and closing levels for the index were attained on 22 May, 2018. On this trading day, the intraday peak was 7,903.50 and the closing level 7,877.45.

Is the FTSE 100 Index a good gauge for the British economy?

Yes and no.

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While it is true that the FTSE 100 Index is linked to the British economy, many of the companies included in the FTSE 100 Index are international companies with an international market, and they are also significantly impacted by the exchange rates of the pound sterling. Therefore, this index is typically not considered a strong indicator for how the overall UK economy is fairing. The FTSE 250 Index is considered a better indicator, since it contains a smaller proportion of internationaly focused companies.

FTSE 100 Index constituents in March 2021

Data is from 19 March 2021.

  • 3i
  • Admiral Group
  • Anglo American plc
  • Antofagasta
  • Ashtead Group
  • Associated British Foods
  • AstraZeneca
  • Auto Trader Group
  • Avast
  • Aveva
  • Aviva
  • B&M
  • BAE Systems
  • Barclays
  • Barratt Developments
  • Berkeley Group Holdings
  • BHP
  • BP
  • British American Tobacco
  • British Land
  • BT Group
  • Bunzl
  • Burberry
  • Coca-Cola HBC
  • Compass Group
  • CRH plc
  • Croda International
  • DCC plc
  • Diageo
  • Entain
  • Evraz
  • Experian
  • Ferguson plc
  • Flutter Entertainment
  • Fresnillo
  • GlaxoSmithKline
  • Glencore
  • Halma
  • Hargreaves Lansdown
  • Hikma Pharmaceuticals
  • HSBC
  • IHG Hotels & Resorts
  • Imperial Brands
  • Informa
  • Intermediate Capital Group
  • International Airlines Group
  • Intertek
  • JD Sports
  • Johnson Matthey
  • Just Eat Takeaway
  • Kingfisher
  • Land Securities
  • Legal & General
  • Lloyds Banking Group
  • London Stock Exchange Group
  • M&G
  • Melrose Industries
  • Mondi
  • National Grid plc
  • NatWest Group
  • Next plc
  • Ocado Group
  • Pearson plc
  • Pershing Square Holdings
  • Persimmon plc
  • Phoenix Group
  • Polymetal International
  • Prudential plc
  • Reckitt
  • RELX
  • Renishaw
  • Rentokil Initial
  • Rightmove
  • Rio Tinto
  • Rolls-Royce Holdings
  • Royal Dutch Shell
  • RSA Insurance Group
  • Sage Group
  • Sainsbury’s
  • Schroders
  • Scottish Mortgage Investment Trust
  • Segro
  • Severn Trent
  • DS Smith
  • Smiths Group
  • Smith & Nephew
  • Smurfit Kappa
  • Spirax-Sarco Engineering
  • SSE plc
  • Standard Chartered
  • Standard Life Aberdeen
  • St. James’s Place plc
  • Taylor Wimpey
  • Tesco
  • Unilever
  • United Utilities
  • Vodafone Group
  • Weir Group
  • Whitbread
  • WPP plc
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