FTSE 100 ETF

The British Stock Exchange, or better put the London Stock Exchange, is of course one of the best known stock exchanges in the world. Before I was able to pick the best FTSE ETF for trading the English stock exchange I first had to choose which stock index I would want to track.

Alongside the FTSE 100 there is an FTSE 250, an FTSE 350 and even an FTSE All Shares stock index that tracks stocks trading on the London Stock Exchange. The FTSE 100 only tracks 100 company stocks, but it is by far the most popular and heaviest traded market index.

The FTSE 100 represents almost 80% of the total market capitalization of the Exchange and for this reason it reflects the market in a proper way. With 100 companies included in the FTSE 100 this market index is much wider spread than the CAC 40, DAX or AEX.

I always prefer large spreads. In the case of the FTSE 100 this spread is not only sector wise but also geographic wise. Besides many multinational companies the FTSE 100 also comprises many companies that are mainly depended upon the UK Market.

It goes without saying that here too the giant companies dominate the price movement of this market index as the FTSE 100 is weighed upon market capitalization of each underlying stock. You will find many well-known companies included in this index such as: Shell, HSBC, Unilever and Vodafone.

But you will also find some more peculiar companies most people never have heard of such as Mondi, Sage Group, Hikma, Weir Group and GKN.

iShares Core FTSE 100 UCITS ETF (dist)

In choosing the best suited ETF for trading the FTSE I was explicitly looking for an ETF that was trading in Euro’s and not in British Pounds as I only want to invest in 2 currencies (the Dollar and the Euro). The iShares FTSE 100 UCITS ETF (dist) also has a quotation in Euro’s on the Amsterdam Stock Exchange which I think is an advantage in trading.

This ETF is a physical ETF which means that all underlying shares are in possession of iShares. The “dist” extension implies that dividends will not be reinvested but paid out (quarterly).

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