The FTSE 250 — comprising the 250 companies ranked 101 to 350 by market capitalisation on the London Stock Exchange — is one of the most overlooked opportunity sets in global investing.
Why the FTSE 250 Outperforms
Mid-cap companies tend to combine the growth characteristics of smaller businesses with the financial stability of larger ones. They are also more domestically focused — giving investors cleaner UK exposure.
Current Valuation
The FTSE 250 currently trades at a significant discount to its historical average on earnings multiples, reflecting persistent uncertainty about the UK economic outlook.
Sectors to Watch
Housebuilders, retailers and financial services companies dominate the index — sectors that are particularly sensitive to interest rate movements and consumer confidence.
How to Invest
Vanguard and iShares both offer low-cost FTSE 250 index funds. Actively managed UK mid-cap funds are also available for investors who want stock selection.
