FTSE 100 Companies List

by Gavin in Blog

April 12, 2022 • 0 comments

The ‘Financial Times Stock Exchange 100 Index’ contains 100 different companies that have the highest market cap in the London Stock Exchange.

The FTSE 100 was established back in 1984 and takes advantage of the cap-weighted format to list 100 top-tier companies that are currently listed.

Contents

• List of FTSE 100 Companies 
• Risk Management
• FAQs about the FTSE 100
• Final Thoughts

The FTSE 100 has an excellent track record for growth and continues to be one of the most popular investment funds for investors.

There were some changes to the list of companies in the FTSE 100 back in mid-September, so this index fund has some new additions to its portfolio.

These additions include Meggitt, Morrison’s, and Dechra Pharmaceuticals.

With three new additions, that also means that three companies had to be removed from the FTSE 100.

These companies include Weir Group, ITV, and Just Eat Takeaway.

List of FTSE 100 Companies 

Each of the 100 companies are consistently evaluated on a regular basis to ensure they still meet all of the qualifications to be listed on the FTSE 100.

Periodically, some companies may be added or removed to rebalance the index fund’s portfolio.

Sorted by Alphabetical Order  (Source)

Risk Management

The FTSE 100 has an excellent reputation with investors for being a high-potential investment with limited risk.

By investing in 100 of the best companies listed in the London Stock Exchange, investors are getting exposure to a diverse portfolio of companies that all show excellent potential for the future.

FAQs about the FTSE 100

Here are some of the answers to the most-frequently asked questions about the FTSE 100.

Investors should evaluate these questions so that they have a full understanding of the fund before investing in it with their own money.

Is the FTSE 100 considered to be a risky investment?

There is no such thing as a ‘no-risk’ investment. When you put your own money on the line, there’s always a percentage of risk that comes along with it.

With that being said, the FTSE 100 has been around since 1984 and has always generated a solid return on an annual basis.

How often does the portfolio composition change in the FTSE 100?

Companies are rebalanced and adjusted periodically in the FTSE 100.

You might see changes to the FTSE 100’s portfolio a few times per year, usually around the end of a quarter.

It’s relatively normal for a few companies to be replaced per year, although it can be more or less depending on certain circumstances.

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What’s the average annual return for the FTSE 100 over the last ten years?

The average annual return for the FTSE 100 over the last decade has been approximately 7.5%.

This is a solid amount of growth for investors and the fund has been extremely consistent in generating this amount of returns on an annual basis.

Final Thoughts

The FTSE 100 could be an excellent choice for a long-term investment if you are starting to plan out your financial future.

The FTSE 100 has been around for 37 years and has continuously listed 100 of the best-performing companies over the course of its existence.

This is one of the reasons that so many investors place their financial trust into an index like the FTSE 100.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.