The flagship financial index for the UK’s largest corporates (the blue chips) is the FTSE-100 share index. This index represents the UK PLC’s largest 100 companies.
\nTaking a closer look at the largest 10 companies that are in the FTSE-100 and seeing their representative percentage weight in the index gives even more insight:<\/p>\n
HSBC Holdings = 7.69%
\nVodafone = 5.59%
\nBP = 5.25%
\nGlaxoSmithKline = 4.77%
\nBritish American Tobacco = 4.12%
\nRoyal Dutch Shell (A) = 4.01%
\nRoyal Dutch Shell (B) = 3.56%
\nDiaego = 2.90%
\nAstraZeneca = 2.43%
\nBHP Biliton = 2.27%<\/p>\n
[% weightings from Legal & General FTSE-100 Index Fund Managers Report]<\/p>\n
Add up the percentages and you get 42.59%<\/strong>.<\/p>\n Yes, UK’s top 10 companies out of the 100 largest account for 42.59% of the FTSE-100.<\/p>\n The ‘remaining<\/strong><\/em>‘ 90 companies in the FTSE-100 such as BT, Barclays, Legal & General, Centrica, LloydsBankingGroup, Aviva, Prudential, British Land, Tesco, BG Group, Standard Chartered, National Grid, Arm Holdings, Marks & Spencer, Sainsburys, Severn Trent, Unilever, Burberry, Rio Tinto, GlencoreXstrata, The Royal Bank of Scotland, Land Securities, WPP, Standard Life, United Utilities, Anglo American, Rolls Royce,BAE Systems, Scottish & Southern Energy, RSA Insurance Group, Fresnillo, WM Morrison…. only account for 57.41%<\/strong> of the index.<\/p>\n Thus by investing into a FTSE-100 Index Tracker, over 13% of your investment is held in HSBC and Vodafone alone. The FTSE-100 is distorted by the UK’s\u00a0 largest top 10 companies.<\/p>\n","protected":false},"excerpt":{"rendered":" The flagship financial index for the UK’s largest corporates (the blue chips) is the FTSE-100 share index. This index represents the UK PLC’s largest 100 companies. Taking a closer look at the largest 10 companies that are in the FTSE-100 and seeing their representative percentage weight in the index gives even more insight: HSBC Holdings […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-141","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=141"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/141\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/141\/revisions\/142"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}