What Is the Footsie?
"Footsie" is slang for the Financial Times-Stock Exchange 100 Share Index (FTSE 100). The index tracks the 100 largest public companies by market capitalization that trade on the London Stock Exchange (LSE). "FTSE" is an acronym for the Financial Times and the LSE, its original parent companies.
Key Takeaways
- "Footsie" is a slang term referring to the Financial Times-Stock Exchange 100 Share Index (FTSE 100).
- The index tracks the 100 largest public companies by market cap on the London Stock Exchange.
- The index functions similarly to the Dow Jones Industrial Average (DJIA) and the S&P 500 in the U.S. and serves as an indicator of the broader market.
Understanding the Footsie
The FTSE is now owned and maintained by the London Stock Exchange Group. It has similar importance in London to the U.S. Dow Jones Industrial Average and S&P 500 and is a major indicator of the performance of the broader market.
The level of the FTSE 100 is calculated using the total market capitalization of the constituent companies and the index value. Total market capitalization changes with individual share prices of the indexed companies throughout the trading day, so the index value also changes.
When the FTSE 100 is quoted up or down, it is measured against the previous day’s market close. It is calculated continuously on every trading day from 8:00 AM at the market opening until the 4:30 p.m. LSE close. A FTSE 100 declinemeans that the value of the largest U.K. listed companies decreased. The FTSE hitting a new high means that the total worth of all the indexed companies increased.
FTSE Composition
The FTSE 100 was launched in 1984. Since then, its makeup has changed to reflect mergers and acquisitions as well as entering and exiting companies, underscoring its function as a barometer of market activity.
A company need not be British to be in the FTSE but must be listed on the LSE. Because many of the listed companies are foreign-based or do most business overseas, the value of the pound is a factor as well. A weaker pound means a dollar-based company would be worth more in pounds, and a rising pound means companies doing business in Europe would earn less in the U.K.
The FTSE reviews the components of the FTSE 100 quarterly to ensure it includes the highest market cap companies.
The top 10 largest companies by market cap included in the FTSE 100 as of June 21, 2023, are as follows:
| Company | Market Cap |
| AstraZeneca | £180.3 billion |
| Shell | £157.2 billion |
| HSBC | £122.2 billion |
| Unilever | £102.0 billion |
| BP | £79.3 billion |
| Diageo | £74.3 billion |
| RIO Tinto | £64.5 billion |
| British American Tobacco | £57.5 billion |
| Glencore | £56.1 billion |
| GSK | £55.8 billion |
Other FTSE Indices
FTSE also researches and publishes many other indices that track a wide range of securities and financial instruments.
Other FTSE U.K. indices include the FTSE 250, which includes the next 250 largest companies after the FTSE 100. The FTSE 100 and FTSE 250 make up the FTSE 350, and together with the FTSE SmallCap comprise the FTSE All-Share.
Investing in the FTSE 100
As the FTSE 100 is an index, it is impossible to invest directly in the index. To get exposure to the index, investors can invest in exchange-traded funds that track and invest in the companies listed in the index.
The two most popular ETFs for this purpose are:
- iShares Core FTSE 100 UCITS ETF
- Vanguard FTSE 100 UCITS ETF
Other ETF options that track the index include:
- HSBC FTSE 100 UCITS ETF
- UBS FTSE 100 UCITS ETF
What Makes Up the FTSE 100?
The FTSE 100 is made up of the largest 100 companies by market capitalization that trade on the London Stock Exchange. The index tracks these companies.
Can Americans Invest in the FTSE 100?
Yes, American investors can invest in the FTSE 100. The best way to do this is to invest in exchange-traded funds. There are funds that focus on replicating, tracking, and shorting the companies of the index. Examples include iShares Core FTSE 100 UCITS, Vanguard FTSE 100 UCITS, and HSBC FTSE 100 UCITS.
What Is the U.S. Equivalent of the FTSE 100?
The U.S. equivalent of the FTSE 100 is the S&P 500. Though the FTSE 100 tracks 100 companies and the S&P 500 tracks 500 companies, both are considered to be the key indexes in their respective countries that serve as a broader market indicator.
The Bottom Line
The FTSE 100 index, made up of the largest 100 companies trading on the LSE by market cap, is an important indicator of the broader financial market. It is closely followed by investors and is similar in function to the DJIA and , and contains some of the largest companies in the world, such as BP and Shell.
Article Sources
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London Stock Exchange. "Our Brands."
FTSE Russell. "Guide to Calculation Methods for the FTSE UK Index Series," Page 4.
London Stock Exchange. "FAQs. What Are London Stock Exchange Trading Hours?"
IG. "FTSE 100 History."
London Stock Exchange. "FTSE 100. Table."
London Stock Exchange. "FTSE Indices."
FTSE Russell. "FTSE UK Index Series."
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