If you’ve ever read about the UK stock market, you’ve probably seen terms like FTSE 100, FTSE 250, or FTSE All-Share.
They may sound similar, but they’re not the same. Each one tells a different story about the market.
This blog breaks it down in a way that’s easy to understand. Whether you’re new to investing or want to stay informed, this will give you clarity without confusion.
What is the FTSE?
FTSE stands for Financial Times Stock Exchange.
It’s a group of stock indexes. These indices track the performance of specific groups of companies listed on the London Stock Exchange (LSE).
1. FTSE 100: The Big Players
- This index tracks the top 100 largest companies on the LSE.
- These companies are large in size and are often well-known around the world.
- Examples include Shell, HSBC, and Unilever.
Key Points:
- Focuses on large businesses
- Most have international operations
- It shows how the biggest UK-listed firms are performing
2. FTSE 250: The Mid-Sized Movers
- Tracks the following 250 biggest companies after the FTSE 100.
- These are mid-sized companies, also known as mid-caps.
- Many are more focused on the UK market.
Key Points:
- Covers medium-sized businesses
- Better reflects the UK economy
- Often more dynamic and growth-focused
3. FTSE All-Share: The Full Picture
- Combines companies from the FTSE 100, FTSE 250, and FTSE SmallCap.
- It includes about 600 companies in total.
- Represents over 98% of the UK stock market by value.
Key Points:
- Gives a broad view of the UK stock market
- Ideal for diversified investing
- Tracks small, medium, and large companies
How Are They Different?
Index Company Size Number of CompaniesMarket Focus
FTSE 100 Large-cap 100 Global
FTSE 250 Mid-cap 250 Mostly UK
FTSE All-Share All sizes ~600+ UK + Global Mix
How Do These Indexes Work?
All three indices are:
- Managed by FTSE Russell
- Based on market capitalisation
- Updated every quarter
- Heavily influenced by the largest companies on the list
Companies move in and out of the indexes as their size changes.
Is There a Venue or Event for FTSE Indexes?
No. These indices are not events or physical locations.
They are virtual tools that track the performance of stocks.
However, they are linked to the London Stock Exchange, which is located in Paternoster Square, London.
If you ever visit the LSE, there are numerous hotels nearby where business travellers typically stay.
When Are They Active?
You can follow these indices during the trading hours of the London Stock Exchange:
- Monday to Friday
- 8:00 AM to 4:30 PM (UK time)
- Closed on UK public holidays
Do You Need to Pay?
- Tracking these indices is free
- Investing in them may come with some fees:
- Broker fees
- Fund management charges
- Currency conversion charges (for non-UK investors)
Please verify the exact costs with your broker or platform.
Why Should You Follow These Indexes?
Understanding these indices helps you:
- Stay updated on the economy
- Make better investment decisions
- Spot market trends
- Manage your finances more smartly
Which Index is Right for You?
- FTSE 100: Great for those who want stability and global exposure
- FTSE 250: Good for investors who wish to focus on more growth and the UK economy
- FTSE All-Share: Perfect if you want a diverse mix across different business sizes
Benefits for Investors
- FTSE 100: More stable, often with dividends
- FTSE 250: Higher growth potential
- FTSE All-Share: Balanced mix of risk and return
You can invest through ETFs, mutual funds, or pension plans.
Who Should Follow These Indexes?
These indices are helpful for:
- New and experienced investors
- Business owners and professionals
- Students studying finance or economics
- Anyone curious about how the UK stock market works
Common Myths
- Myth: FTSE 100 is the whole UK market
- Fact: It only covers the 100 largest firms
- Myth: FTSE 250 is too risky
- Fact: It offers solid growth with some risk
- Myth: FTSE All-Share is hard to track
- Fact: It’s available on most financial platforms
Final Thoughts
These indices may seem similar, but they tell very different stories about the UK market.
Knowing what each one tracks—and how—can help you decide where to invest or what to watch.
Whether you want stability, growth, or a complete market view, there’s an index that suits your needs.
Understanding these three gives you a real edge in both business and investing.
Ready to learn more or explore investment options in these indexes?
Click here to visit and explore the official FTSE indices page