{"id":151515,"date":"2020-09-22T22:23:15","date_gmt":"2020-09-22T22:23:15","guid":{"rendered":"https:\/\/www.bnreport.com\/is-the-ftse-100-a-good-investment\/"},"modified":"2020-09-22T22:23:15","modified_gmt":"2020-09-22T22:23:15","slug":"is-the-ftse-100-a-good-investment","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/","title":{"rendered":"Is the FTSE 100 a good investment?"},"content":{"rendered":"

The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been going sideways even before the coronavirus knocked further wind out of it.<\/p>\n

As one of the worst-performing indices in recent years, it could safely be said that Londons equity benchmark is unexciting for investors.<\/p>\n

Perhaps even, with its the lions share of its earnings derived from abroad, and so a poor representation of the UK economy, one might even say the Footsie is rather pointless.<\/p>\n

A exchange-traded fund (ETF) tracking the FTSE 100 is not really taking a bet on Britain.<\/p>\n

\u201cPeople attribute the poor performance of the FTSE to the uncertainty of Brexit, which deters overseas investors and they also attribute it to the nature of the index,\u201d says Peter Sleep, senior investment manager at Seven Investment Management.<\/p>\n

\u201cYou might say it has a lot of deadwood, others might say that it is defensive in nature.\u201d<\/p>\n

He acknowledges that the Footsie does suffer a serious missing element, though, one that is agreed on by even its supporters: a lack of technology companies.<\/p>\n

\u201cThat is one serious missing element in the UK equity market generally,\u201d says Sleep.<\/p>\n

\u201cWe do not have the equivalent of Nvidia, we do not have a Microsoft, or a big leading online company like Amazon, Google or Alibaba.\u201d<\/p>\n

While the FTSE 100 does have automated grocery warehouse group Ocado (LON:OCDO<\/a>) and Just Eat Takeaway (LON:JET<\/a>), they are at almost \u00a319bn and \u00a312bn small fry compared to even third- or fourth-tier US names.<\/p>\n

For example, Zoom Video Communications (NASDAQ:ZM<\/a>), a company that no-one had heard of until March this year, would be the second biggest company on the Footsie.<\/p>\n

At US$1.9trn Apple (NASDAQ:AAPL<\/a>) on its own is bigger than Londons premier share index, which recently had a combined market cap of roughly \u00a31.8trn.<\/p>\n

\u201cUnfortunately for investors, the UKs major market indices really are bereft of exciting tech or growth companies,\u201d says Tom Bailey, ETF specialist at investment platform Interative Investor.<\/p>\n

\u201cThe absence of more exciting, future-orientated stocks from major indices is not because the UK economy does not produce such companies. Rather, UK tech companies seem to be more likely to end up in private hands.\u201d<\/p>\n

A company such as microchip designer ARM Holdings would add a dash of tech panache to the index but it was snaffled by Japans SoftBank in 2016 and is now looking like being snapped up by US-based Nvidia.<\/p>\n

More recently, cyber security software company Sophos was taken over for just over \u00a33bn by a US private equity group, when it might have had a promotion to the index in its sights in the next few years.<\/p>\n

But on the major investment platforms, the big FTSE 100 tracker funds remain popular \u2014 although Matt Brennan at AJ Bell says this is partly down to their extremely low costs.<\/p>\n

\u201cThe iShares or Vanguard Footsie trackers are just 0.07% a year, so theyre seen as an easy way of accessing the UK market.\u201d<\/p>\n

For trackers or ETFs size is perhaps the main issue, as the more exciting UK tech stocks are generally pretty small on a global scale.<\/p>\n

\u201cWhat makes it hard to get ETF access to the exciting UK tech stocks is that on the passive side you cant do it because of the lack of liquidity.<\/p>\n

\u201cWhen you look at these sub \u00a31bn companies even less of the shares are freely traded \u2013 either its closely held by a family or founders or a lot of that part of the UK market now trades in blocks on unlit markets. So what that means is its very hard forRead More \u2013 Source<\/a>
\n[contf]
\n[contfnew]
\n <\/p>\n

Proactiveinvestors<\/a><\/h5>\n

[contfnewc]
\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"

The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..<\/p>\n","protected":false},"author":1,"featured_media":151516,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-151515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nIs the FTSE 100 a good investment? - Business News Report<\/title>\n<meta name=\"description\" content=\"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the FTSE 100 a good investment? - Business News Report\" \/>\n<meta property=\"og:description\" content=\"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"Business News Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-22T22:23:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"infopal11\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BNReport\" \/>\n<meta name=\"twitter:site\" content=\"@BNReport\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"infopal11\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/\"},\"author\":{\"name\":\"infopal11\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\"},\"headline\":\"Is the FTSE 100 a good investment?\",\"datePublished\":\"2020-09-22T22:23:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/\"},\"wordCount\":613,\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg\",\"articleSection\":[\"Politics\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/\",\"name\":\"Is the FTSE 100 a good investment? - Business News Report\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg\",\"datePublished\":\"2020-09-22T22:23:15+00:00\",\"description\":\"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/09\\\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/is-the-ftse-100-a-good-investment\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629\",\"item\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Is the FTSE 100 a good investment?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"name\":\"Business News Report\",\"description\":\"Latest News on the World of Politics & Business\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#organization\",\"name\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"contentUrl\":\"https:\\\/\\\/www.bnreport.com\\\/wp-content\\\/uploads\\\/2020\\\/12\\\/LOGO2.png\",\"width\":200,\"height\":50,\"caption\":\"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Business-NewsReport-328225811095934\\\/\",\"https:\\\/\\\/x.com\\\/BNReport\",\"https:\\\/\\\/www.instagram.com\\\/business.newsreport\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/#\\\/schema\\\/person\\\/19d1c5a2dd7f60584a09de4a7805d68f\",\"name\":\"infopal11\",\"url\":\"https:\\\/\\\/www.bnreport.com\\\/en\\\/author\\\/infopal11\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is the FTSE 100 a good investment? - Business News Report","description":"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/","og_locale":"en_US","og_type":"article","og_title":"Is the FTSE 100 a good investment? - Business News Report","og_description":"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..","og_url":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/","og_site_name":"Business News Report","article_publisher":"https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","article_published_time":"2020-09-22T22:23:15+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg","type":"image\/jpeg"}],"author":"infopal11","twitter_card":"summary_large_image","twitter_creator":"@BNReport","twitter_site":"@BNReport","twitter_misc":{"Written by":"infopal11","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#article","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/"},"author":{"name":"infopal11","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f"},"headline":"Is the FTSE 100 a good investment?","datePublished":"2020-09-22T22:23:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/"},"wordCount":613,"publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg","articleSection":["Politics"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/","url":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/","name":"Is the FTSE 100 a good investment? - Business News Report","isPartOf":{"@id":"https:\/\/www.bnreport.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#primaryimage"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg","datePublished":"2020-09-22T22:23:15+00:00","description":"The FTSE 100, stuffed with companies such as oil producers, high street banks and airlines, had been..","breadcrumb":{"@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#primaryimage","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/09\/1200z630_1600790112_2020-09-22-16-55-12_70f2ca9d219cf3c2274cdc63768d9d52.jpg","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.bnreport.com\/en\/is-the-ftse-100-a-good-investment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"\u0627\u0644\u0631\u0626\u064a\u0633\u064a\u0629","item":"https:\/\/www.bnreport.com\/en\/"},{"@type":"ListItem","position":2,"name":"Is the FTSE 100 a good investment?"}]},{"@type":"WebSite","@id":"https:\/\/www.bnreport.com\/en\/#website","url":"https:\/\/www.bnreport.com\/en\/","name":"Business News Report","description":"Latest News on the World of Politics & Business","publisher":{"@id":"https:\/\/www.bnreport.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bnreport.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.bnreport.com\/en\/#organization","name":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a","url":"https:\/\/www.bnreport.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","contentUrl":"https:\/\/www.bnreport.com\/wp-content\/uploads\/2020\/12\/LOGO2.png","width":200,"height":50,"caption":"\u0628\u0632\u0646\u0633 \u0631\u064a\u0628\u0648\u0631\u062a \u0627\u0644\u0627\u062e\u0628\u0627\u0631\u064a"},"image":{"@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Business-NewsReport-328225811095934\/","https:\/\/x.com\/BNReport","https:\/\/www.instagram.com\/business.newsreport"]},{"@type":"Person","@id":"https:\/\/www.bnreport.com\/en\/#\/schema\/person\/19d1c5a2dd7f60584a09de4a7805d68f","name":"infopal11","url":"https:\/\/www.bnreport.com\/en\/author\/infopal11\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/151515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/comments?post=151515"}],"version-history":[{"count":0,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/posts\/151515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media\/151516"}],"wp:attachment":[{"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/media?parent=151515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/categories?post=151515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bnreport.com\/en\/wp-json\/wp\/v2\/tags?post=151515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}