These are the 20 best stocks in the FTSE 100, based on year-to-date performance.
Currently, the pandemic has complicated issues a little more for the UK stocks.
Despite these short-term uncertainties, anyone who wants to profit from the UK equity markets should take a long-term view of the market.
To help in enhancing long-term profitability, this article has put together the best stocks in the FTSE 100 based on year-to-date performance.
However, that’s not to say that these are the best stocks to buy right now. No one can confidently state that they have the crystal ball to predict the markets at all times accurately.
For someone who wants to invest in UK markets, investing in stocks through ETFs and index funds is the best option.
Best UK Stocks As of February 2023
| Symbol | Company Name | Price-performance (This year) |
|---|---|---|
| PSON | Pearson plc | 56.83% |
| STAN | Standard Chartered plc | 46.01% |
| CTEC | ConvaTec Group Plc | 46.00% |
| GLEN | Glencore plc | 45.68% |
| BA. | BAE Systems plc | 43.65% |
| CNA | Centrica plc | 42.58% |
| SHEL | Shell plc | 34.36% |
| BEZ | Beazley plc | 33.17% |
| BP. | BP plc | 30.53% |
| ANTO | Antofagasta plc | 29.97% |
| AZN | AstraZeneca plc | 28.79% |
| BRBY | Burberry Group plc | 26.25% |
| INF | Informa plc | 25.12% |
| FLTR | Flutter Entertainment | 22.48% |
| IHG | InterContinental Hotels Group plc | 22.16% |
| EDV | Endeavour Mining plc | 21.06% |
| HSBA | HSBC Holdings plc | 20.86% |
| NWG | NatWest Group plc | 20.65% |
| RIO | Rio Tinto plc | 19.30% |
| CPG | Compass Group plc | 18.82% |
Your capital is at risk. Other fees apply.
The Best Answer: Index Funds
It is almost impossible to win by trying to pick individual stocks consistently. As such, savvy investors go for index mutual funds and ETFs.
Investing through such funds has a lot of advantages for investors. One of them is consistency in returns. Between 1984 and 2019, the FTSE 100 gave an average return of 7.8%.
While individual stocks may give higher returns than this, there is also a higher volatility risk. Most investors that actively try to beat the FTSE 100 end up losing money in the long run.
Investing through index funds also has the advantage of diversification. For instance, when you invest in a fund that tracks the FTSE 100, you are betting on top 100 companies from multiple sectors of the economy.
Even if one sector of the economy were to underperform, the losses are counteracted by those performing well. It’s not the same as betting on a single stock, only to take a massive loss if the industry ends up underperforming.
Then, of course there is the aspect of fees. When you buy and actively trade individual stocks, you are charged for each transaction. Cumulatively, this can eat into earnings in the long run. With index funds, you get access to the entire FTSE 100 without having to incur the fees.
For this reason, successful investors such as Warren Buffet advise investors to go for ETFs and low-cost index funds.
Expectations Management
However, that is not to say that index funds are meant to beat the market. The idea is to match the performance of the FTSE 100.
One can also go for index funds that mirror international markets, commodities such as gold, among other assets.
In essence, an investor should not focus on beating the market but on consistent and low-risk returns that come with index funds. By investing in a few index funds, it is very easy to build a balanced portfolio.
However, that’s not to say that index funds do not have their disadvantages. One of the disadvantages of investing in index funds is that they are boring. There is a thrill that comes with trying to time stocks, and it’s just not there with index funds.
That said, there is a way to work around this problem. One can choose to split their investments and send a portion of the money into an index fund and the rest into active trading.
This enables you to enjoy the safety of index funds, and the fun that comes with active trading.
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