What Is the FTSE 100? Sectors, Yield, Currency Mix

The FTSE 100 tracks the 100 largest companies on the London Stock Exchange by market cap, but around 75-80% of their revenue is earned outside the UK.

The index is heavy on energy, banks, miners, healthcare and consumer staples. It has almost no exposure to global technology.

It pays a dividend yield of 3.5-4.5%, well above the S&P 500 (1.3-1.5%) or MSCI World (1.7%), making it a favourite for income-focused portfolios.

The FTSE 100 has lagged the S&P 500 dramatically since 2010, but that recent gap is not a forecast and the index has its own structural strengths worth owning.