What does FTSE stand for?
Financial Time Stock Exchange (FTSE) 100 index allows investors exposure to the performance of 100 largest companies listed on the London Stock Exchange (LSE).
Commonly it is known as a UK equity index however it is one of few indices which can give investors a truly global equity exposure. While major market indices DAX 30 or ASX have companies that are dominant in their respective economies. Companies on the LSE does business across the globe.
FTSE Index Return
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Chart above shows the return of the FTSE 100 index performance year to date. It also shows the relative performance of the index compared to other major equity markets around the globe.
Depreciation of the domestic currency in most instances will also makes the countries exports more competitive. Total market returns since Brexit vote in 2016 has been resilient verses other global equity markets because a large portion of the companies in the FTSE index have significant overseas businesses. As result of the devaluation of the British Pound verses the US dollar which gives the British companies in the FTSE a major double boost.
First since the FTSE with the underlying shares themselves and its earnings are priced in pounds, a weaker pound means the foreign earnings translated back into the pound will be worth more. Additionally, while a portion of the companies earnings are export driven, it still has a major cost base in the UK. This is either through having its HQ or a large manufacture or service based in London.
While the absolute cost remains the same, the higher repatriated income means the cost as a percentage of overall revenues decline. So in addition to higher income from translating profits back to the UK and assuming the cost base remains the same, the profit margin also improves. Although this can be seen as both sides of the same coin.
Index Holding Summary
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The index is relatively diversified with 100 positions. Top 10 holdings make up only 40% of the portfolio. These are well known names such as HSBC, Royal Dutch Shell, BP and Diageo.
The sample of companies above have businesses across the globe. From the equity perspective it makes the index a good proxy for underlying performance of the global economy.
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Sector segment shows that 4 sectors, financial, consumer staples, energy and healthcare are responsible for more than 60% of the index.
Investors can use index futures or exchange traded funds for portfolio exposure that track the performance of the index. FTSE futures are designed as a hedging and trading instrument while ETFs is the best avenue for long term investors.
Whilst there are no ETFs listed on the ASX that provides direct exposure to FTSE. Investors best avenue is through FTSE 100 ETF listed on the LSE. The ETF is priced in AUD to GBP exchange rate which introduce an element of FX risk for investors. Upside is that since the ETF is an index tracking fund, the management expense is only 0.07% per annum.
We have sorted the list based on ranking using market capitalisation, name, LSE ticker symbol and the sector the company sector classification.
FTSE 100 Companies
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Rank,Name,Ticker,Sector
1,HSBC HOLDINGS PLC,HSBA,Financials
2,BRITISH AMERICAN TOBACCO PLC,BATS,Consumer Staples
3,ROYAL DUTCH SHELL PLC CLASS A,RDSA,Energy
4,GLAXOSMITHKLINE PLC,GSK,Health Care
5,BP PLC,BP,Energy
6,ROYAL DUTCH SHELL PLC CLASS B,RDSB,Energy
7,VODAFONE GROUP PLC,VOD,Telecommunications
8,ASTRAZENECA PLC,AZN,Health Care
9,DIAGEO PLC,DGE,Consumer Staples
10,LLOYDS BANKING GROUP PLC,LLOY,Financials
11,RECKITT BENCKISER GROUP PLC,RB.,Consumer Staples
12,SABMILLER PLC,SAB,Consumer Staples
13,UNILEVER PLC,ULVR,Consumer Staples
14,BT GROUP PLC,BT.A,Telecommunications
15,NATIONAL GRID PLC,NG.,Utilities
16,IMPERIAL BRANDS PLC,IMB,Consumer Staples
17,PRUDENTIAL PLC,PRU,Financials
18,BARCLAYS PLC,BARC,Financials
19,RIO TINTO PLC,RIO,Materials
20,SHIRE PLC,SHP,Health Care
21,WPP PLC,WPP,Consumer Discretionary
22,COMPASS GROUP PLC,CPG,Consumer Discretionary
23,AVIVA PLC,AV.,Financials
24,GBP CASH,GBP,Cash and/or Derivatives
25,GLENCORE PLC,GLEN,Materials
26,BHP BILLITON PLC,BLT,Materials
27,BAE SYSTEMS PLC,BA.,Industrials
28,CRH PLC,CRH,Materials
29,TESCO PLC,TSCO,Consumer Staples
30,SSE PLC,SSE,Utilities
31,ARM HOLDINGS PLC,ARM,Information Technology
32,RELX PLC,REL,Consumer Discretionary
33,LEGAL & GENERAL GROUP PLC,LGEN,Financials
34,ROLLS-ROYCE HOLDINGS PLC,RR,Industrials
35,STANDARD CHARTERED PLC,STAN,Financials
36,ASSOCIATED BRITISH FOODS PLC,ABF,Consumer Staples
37,EXPERIAN PLC,EXPN,Industrials
38,CENTRICA PLC,CNA,Utilities
39,SKY PLC,SKY,Consumer Discretionary
40,INTERNATIONAL AIRLINES GROUP SA,IAG,Industrials
41,WOLSELEY PLC,WOS,Industrials
42,SMITH & NEPHEW PLC,SN,Health Care
43,NEXT PLC,NXT,Consumer Discretionary
44,OLD MUTUAL PLC,OML,Financials
45,ITV PLC,ITV,Consumer Discretionary
46,LONDON STOCK EXCHANGE GROUP PLC,LSE,Financials
47,LAND SECURITIES GROUP REIT PLC,LAND,Financials
48,KINGFISHER PLC,KGF,Consumer Discretionary
49,ROYAL BANK OF SCOTLAND GROUP PLC,RBS,Financials
50,PEARSON PLC,PSON,Consumer Discretionary
51,STANDARD LIFE PLC,SL.,Financials
52,BRITISH LAND CO PLC,BLND,Financials
53,ANGLO AMERICAN PLC,AAL,Materials
54,WHITBREAD PLC,WTB,Consumer Discretionary
55,CAPITA PLC,CPI,Industrials
56,MARKS & SPENCER GROUP PLC,MKS,Consumer Discretionary
57,BUNZL PLC,BNZL,Industrials
58,INTERCONTINENTAL HOTELS GROUP PLC,IHG,Consumer Discretionary
59,SAGE GROUP PLC,SGE,Information Technology
60,PERSIMMON PLC,PSN,Consumer Discretionary
61,CARNIVAL PLC,CCL,Consumer Discretionary
62,UNITED UTILITIES GROUP PLC,UU,Utilities
63,RANDGOLD RESOURCES LTD,RRS,Materials
64,TAYLOR WIMPEY PLC,TW.,Consumer Discretionary
65,BURBERRY GROUP PLC,BRBY,Consumer Discretionary
66,BARRATT DEVELOPMENTS PLC,BDEV,Consumer Discretionary
67,DCC PLC,DCC,Industrials
68,DIRECT LINE INSURANCE PLC,DLG,Financials
69,MONDI PLC,MNDI,Materials
70,SEVERN TRENT PLC,SVT,Utilities
71,INTERTEK GROUP PLC,ITRK,Industrials
72,JOHNSON MATTHEY PLC,JMAT,Materials
73,GKN PLC,GKN,Consumer Discretionary
74,ST JAMESS PLACE PLC,STJ,Financials
75,RSA INSURANCE GROUP PLC,RSA,Financials
76,BABCOCK INTERNATIONAL GROUP PLC,BAB,Industrials
77,TUI AG,TUI,Consumer Discretionary
78,HAMMERSON REIT PLC,HMSO,Financials
79,TRAVIS PERKINS PLC,TPK,Industrials
80,REXAM PLC,REX,Materials
81,DIXONS CARPHONE PLC,DC.,Consumer Discretionary
82,ROYAL MAIL PLC,RMG,Industrials
83,ASHTEAD GROUP PLC,AHT,Industrials
84,PROVIDENT FINANCIAL PLC,PFG,Financials
85,3I GROUP PLC,III,Financials
86,SMITHS GROUP PLC,SMIN,Industrials
87,INMARSAT PLC,ISAT,Telecommunications
88,BERKELEY GROUP HOLDINGS (THE) PLC,BKG,Consumer Discretionary
89,J SAINSBURY PLC,SBRY,Consumer Staples
90,ADMIRAL GROUP PLC,ADM,Financials
91,EASYJET PLC,EZJ,Industrials
92,MERLIN ENTERTAINMENT GROUP PLC,MERL,Consumer Discretionary
93,SCHRODERS PLC,SDR,Financials
94,INTU PROPERTIES REIT PLC,INTU,Financials
95,WORLDPAY GROUP PLC,WPG,Information Technology
96,ABERDEEN ASSET MANAGEMENT PLC,ADN,Financials
97,HARGREAVES LANSDOWN PLC,HL,Financials
98,COCA COLA HBC AG,CCH,Consumer Staples
99,HIKMA PHARMACEUTICALS PLC,HIK,Health Care
100,ANTOFAGASTA PLC,ANTO,Materials
101,FRESNILLO PLC,FRES,Materials
102,SPORTS DIRECT INTERNATIONAL PLC,SPD,Consumer Discretionary[/etable]