No doubt SPX500 is one of the best performing index overall. in 2021 Giving around 22% return. But there are few points which makes UK100 attractive in coming years !
𝟭) 𝘿𝙞𝙫𝙚𝙧𝙨𝙞𝙛𝙞𝙚𝙙 𝙍𝙚𝙫𝙚𝙣𝙪𝙚 𝙨𝙩𝙧𝙚𝙖𝙢 72% of total blue chip companies listed in London stock exchange ‘s revenue derived from outside of the UK. A large share of overseas revenue provides investors with better exposure to a range of global themes, where outcomes are not dictated by the UK economy itself. This is a good setup as the countries will continue to struggle at different time due to covid outbreak.
𝟮) 𝙒𝙖𝙧𝙢𝙞𝙣𝙜 𝙪𝙥 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 After Brexit , now there’s much better clarity around the rules of engagement, as well as the confidence index is boosting. As a result, the UK’s rank as the most attractive place in Europe for future investment is increasing. According to research 43% of investors believes UK will deliver better returns globally compare to Germany at 28% and France 31% .( check the chart attached )
𝟯) 𝙏𝙖𝙠𝙞𝙣𝙜 𝙀𝙎𝙂 𝙨𝙚𝙧𝙞𝙤𝙪𝙨𝙡𝙮. UK companies have done well as an early adopters of environmental, social, and governance (ESG) practices. In fact, 45% of FTSE 100 companies have begun integrating ESG metrics into their executive compensation schemes.
𝟰) 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙𝙨, 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙𝙨 𝙖𝙣𝙙 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙𝙨 With rising interest rates value companies are always in demand on top companies giving better dividend to investors are cherry on top. Over a 10-year time frame, UK dividends rates have exceeded those of other global markets. Dividend Yield (as of Sept. 30, 2021) for UK100 stand at 3.7% while SPX500 is just 1.4% )
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