The FTSE-100 is the flagship index of the largest UK Companies.
Famous names like HSBC, BP and BT the most dynamic telecommunications group in the world, to name just three from the one hundred that make up the FTSE-100.
A fund that invests in the FTSE-100 in the Legal & General FTSE-100 Tracker:
This fund has £280million invested in the UK’s top 100 firms.
What is interesting to see, in the climate of 0.5% interest rates, by investing ones money in this fund, you get a yield of about 2.5%.
The top ten holdings are:
HSBC Holdings 7.09% of the fund
BP 4.73% of the fund
Royal Dutch Shell ‘A (Dutch listing)’ 4.34% of the fund
GlaxoSmithKline 4.09% of the fund
British American Tobacco 3.9% of the fund
AstraZeneca 3.45% of the fund
Vodafone 3.25% of the fund
Royal Dutch Shell ‘B’ 3.21% of the fund
Diageo 2.70% of the fund
Lloyds Banking Group 2.46% of the fund
What you see is that that the FTSE-100 is dominated by HSBC what makes up 7% of the index then the two Shell’s (one company, two classes of shares for Dutch tax reasons), and Shell is (4.34% + 3.21%) and then followed by BP that makes up 4.73%.
These 9 companies make up 39.22% of the FTSE-100. Yes, 9 companies account for nearly 40% of all the index.