FTSE 100 vs FTSE All-Share vs Global Tracker: Which Should UK Investors Hold?
Open almost any UK platform and the first three trackers on offer are a FTSE 100 fund, a FTSE All-Share fund and a global fund. They look similar on the factsheet, but one holds 100 companies, one around 550, and one about 4,000 across nearly 50 countries. Here’s how they compare on what you own, what they’ve returned, how risky they are, and which one belongs at the heart of a UK FIRE portfolio.
Published: 6 October 2026 at 07:08 · 8 min read
What Is the Difference Between the FTSE 100, FTSE All-Share and a Global Tracker?
The FTSE 100 holds the 100 largest London-listed companies, the FTSE All-Share holds roughly 550 UK companies of all sizes, and a global tracker such as the FTSE All-World holds around 4,000 companies worldwide — with the UK making up only about 3–4% of it. All three are cheap, passive and available in a Stocks & Shares ISA or SIPP. The differences are in how concentrated they are and which parts of the economy they expose you to:
| FTSE 100 | FTSE All-Share | Global (FTSE All-World) | |
|---|---|---|---|
| Number of companies | 100 | ~550 | ~4,000 |
| Top 10 holdings, share of index | ~50% | ~40% | ~25% |
| Share of world stock market | ~3% | ~3.5% | ~98% |
| Largest sectors | Banks, energy, pharma, consumer staples, mining | As FTSE 100, plus more industrials and property | Technology, financials, healthcare, consumer |
| Approx. dividend yield | ~3.5% | ~3.5% | ~1.8% |
| Typical tracker charge (OCF) | ~0.05%–0.10% | ~0.02%–0.10% | ~0.12%–0.22% |
| Example funds | iShares Core FTSE 100 (ISF), Vanguard FTSE 100 (VUKE) | HSBC FTSE All-Share Index, Vanguard FTSE UK All Share Index | HSBC FTSE All-World Index, Vanguard FTSE All-World (VWRP) |
The FTSE 100 makes up around 80% of the All-Share by value, so the two usually move together. The extra 450 or so companies in the All-Share are mainly FTSE 250 mid-caps and smaller firms, which tend to earn more of their money in the UK. A global tracker is a different animal entirely: it is dominated by the US (roughly 60–65%) and by technology companies that barely feature in London’s indices. For the wider debate, see our guide to global vs UK index funds for FIRE.
Which Has Performed Better: UK or Global Trackers?
Over the last 10 to 15 years, global trackers have returned roughly 4–6 percentage points a year more than UK trackers in sterling terms, mainly because of the rise of large US technology companies — but there have been long stretches when the UK did better. The table shows approximate annualised total returns in pounds, with dividends reinvested, to the end of 2024:
| Period | FTSE 100 | FTSE All-Share | Global equities |
|---|---|---|---|
| 10 years (2015–2024), per year | ~6% | ~5.5% | ~11.5% |
| 20 years (2005–2024), per year | ~6% | ~6% | ~9.5% |
| 2000–2009 (dot-com bust and financial crisis) | ~1% | ~1.5% | around 0% |
| 2022 calendar year | around +5% | around 0% | around −8% |
Two lessons sit in that table. First, the gap over the last decade has been enormous: a few percentage points a year compounds into a portfolio roughly 50–70% bigger over ten years. Second, it hasn’t always gone that way. In the 2000s, and again in 2022 when energy and bank shares rallied while technology fell, the FTSE 100 came out ahead. Nobody knows which market will lead over the next 20 years; part of the US lead came from valuations rising, which may not repeat. A global tracker’s advantage is that you don’t have to guess.
Part of the global figures above also came from currency. Sterling fell sharply after the 2016 referendum, which boosted the value of overseas shares for UK investors. The reverse can happen: if the pound strengthens, unhedged global funds lose some of their return in sterling terms.
Isn’t the FTSE 100 Already Global?
Partly: around three-quarters of FTSE 100 company revenues are earned overseas, but owning a handful of London-listed multinationals is not the same as owning the world’s stock markets. Shell, BP, HSBC, AstraZeneca and Unilever sell globally, which is why the FTSE 100 often rises when the pound falls. But you are still getting a narrow slice of the global economy chosen by where companies happen to list, not by where growth is.
The FTSE 100 has almost no exposure to the companies that have driven global returns — there is no equivalent of Apple, Microsoft, Nvidia or Amazon in it — and it is heavily weighted to mature, high-dividend sectors. That is a reasonable thing to own in part, but it is a sector bet as much as a country bet. If you want the UK’s domestic economy, the FTSE 250 or the All-Share gets you closer; if you want global companies, a global tracker gives you thousands of them in one fund.
How Much Difference Does the Choice Make to Your FIRE Date?
A lot: a 1 percentage point difference in annual return on £500 a month over 25 years changes the final pot by around £45,000–£65,000, which is the difference between FIRE numbers years apart. The table uses illustrative after-fee returns, not forecasts for any index, with the income each pot would support at a 4% withdrawal rate:
| Average return after fees | Pot after 25 years (£500/month) | Income at 4% |
|---|---|---|
| 5% a year | £292,900 | £11,700 a year |
| 6% a year | £338,100 | £13,500 a year |
| 7% a year | £391,500 | £15,700 a year |
| 8% a year | £454,500 | £18,200 a year |
You put in £150,000 in every row. The point is not that a global fund will return 8% and a UK fund 5% — past returns don’t promise that — but that the asset choice matters far more than shaving 0.05% off a fund charge. Diversifying across thousands of companies makes it less likely that your whole plan rests on one country’s market having a poor couple of decades, which is exactly the risk UK-only investors ran in the 2010s and US-only investors ran in the 2000s.
Remember too that UK FIRE plans already carry a big sterling asset: the full new State Pension of £11,502 a year from 67, rising with the triple lock. Check your forecast at gov.uk/check-state-pension. Your home, job and future pension are also UK-based, which is one argument for keeping your investment portfolio broadly global.
So Which Should UK FIRE Investors Hold?
For most UK FIRE investors, a low-cost global tracker is the sensible core holding, with a UK tracker as an optional tilt rather than the main event. Common setups include:
- 100% global tracker — one fund, around 3–4% UK, nothing to rebalance between equity funds. See our pick of the best global index funds in the UK.
- Global core plus a UK tilt — for example 80–90% global and 10–20% FTSE All-Share. The All-Share is usually the better UK choice than the FTSE 100, being broader for a similar or lower charge.
- A ready-made multi-asset fund such as Vanguard LifeStrategy, which builds in a UK weighting of roughly a quarter of its equities.
- FTSE 100 for income later — some investors in drawdown like its higher dividend yield, but a total-return approach from a global fund can fund the same spending. See dividend investing vs total return.
Whichever you pick, hold it inside your ISA or SIPP so dividends and gains are free of tax — the FTSE 100’s higher yield makes this especially worthwhile, as dividends above the £500 allowance are taxable in a general investment account (rates on gov.uk). Then compare charges using our guide to the cheapest index funds in the UK, and rebalance once a year if you hold more than one fund.
Frequently Asked Questions
Is a FTSE 100 index fund a good investment?
A FTSE 100 tracker is a cheap way to own the 100 largest companies listed in London, with charges as low as about 0.07% a year and a dividend yield of roughly 3.5%. But it is concentrated: the top ten holdings make up around half the index, it is heavy in banks, oil, mining, pharmaceuticals and consumer staples, and it has almost no large technology companies. Over the last 10 to 15 years it has returned noticeably less than a global tracker. Many UK FIRE investors treat it as a small satellite holding, if they hold it at all, rather than their core fund.
What is the difference between the FTSE 100 and the FTSE All-Share?
The FTSE 100 holds the 100 largest UK-listed companies. The FTSE All-Share holds around 550 companies, combining the FTSE 100, the FTSE 250 mid-caps and the FTSE SmallCap, and covers about 98% of the UK market by value. Because the FTSE 100 is around 80% of the All-Share, the two usually move closely together, but the All-Share gives you more exposure to medium-sized, more UK-focused businesses.
How much of a global tracker is invested in the UK?
Only about 3% to 4%. A global index such as the FTSE All-World or MSCI ACWI weights each country by the value of its stock market, so the US makes up roughly 60% to 65% and the UK a few per cent. If you want more UK exposure than that, you would add a separate UK tracker or use a fund with a built-in home bias, such as Vanguard LifeStrategy.
Should I hold a FTSE 100 tracker and a global tracker together?
You can. A common approach is a global tracker as the core of the portfolio with a modest UK tilt of perhaps 10% to 25% in a FTSE All-Share or FTSE 100 fund, for investors who want some extra sterling-earning, higher-dividend exposure. Holding a FTSE 100 fund on its own as your only investment is much less diversified. Whichever mix you choose, write it down and rebalance to it once a year rather than chasing whichever market did best recently.
Are UK dividends from a FTSE 100 fund taxed?
Not inside a Stocks & Shares ISA or SIPP, where dividends and gains are free of UK tax. In a general investment account, dividends above the £500 dividend allowance are taxed at 8.75%, 33.75% or 39.35% depending on your income tax band in 2025/26, and gains above the £3,000 capital gains allowance are taxable. The FTSE 100's higher yield means a larger share of its return arrives as taxable dividends, which is one more reason to hold it inside an ISA or SIPP.
Work Out Your Own Numbers
Whatever tracker you choose, the target is the same. Use this free calculator to see how big your pot needs to be:
- FIRE Number Calculator — work out the ISA and SIPP pot you need for your annual spending, and test how a lower or higher expected return changes your timeline
New to investing? Start with our step-by-step guide on how to buy index funds in the UK.
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