UK Stock Market CAGR: Average UK Stock Market Returns In Last 30 Years

Let’s understand how we can analyze the UK Stock Market CAGR Returns.

The United Kingdom (UK) is one of the leading economies of the world and has a big stock market for investors and traders. The UK stock market plays a significant role in the country’s economy and attracts both domestic and international investors.

The primary stock exchange in the UK is the London Stock Exchange (LSE), which is one of the largest and most prestigious stock exchanges in the world.

The main index of the UK stock market is the FTSE 100 Index, often referred to as the “Footsie.” It consists of the 100 largest companies listed on the LSE, based on market capitalization. The FTSE 100 serves as a benchmark for the overall performance of the UK stock market and is closely watched by investors and financial professionals.

UK Stock Market CAGR: Average Annual UK Stock Market Returns

FTSE 100 Index on Yahoo Finance

Apart from the FTSE 100, there are other indices within the UK stock market, such as the FTSE 250, which includes the next 250 largest companies after the FTSE 100, and the FTSE All-Share, which represents the broadest measure of the UK stock market by encompassing companies of all sizes.

We will use the FTSE 100 to represent the UK stock market and evaluate its performance.

30 Year UK Stock Market CAGR Returns Measured Via FTSE 100

The FTSE 100 is an index composed of 100 large companies listed on the London Stock Exchange (LSE). The stocks in the FTSE 100 Index are weighted proportional to their market capitalization.

Some of the main stocks that constitute the FTSE 100 Index are ASTRAZENECA (AZN), SHELL (SHEL), HSBC HLDGS (HSBA), UNILEVER (ULVR), BP (BP), etc.

30 Year UK Stock Market CAGR Returns Measured Via FTSE 100

30 Year Stock Market Chart for FTSE 100 Index [May 1993 – May 2023]

30 Year FTSE 100 CAGR

From the stock price chart above, we note down the important data points:

Start Point: May 1993
End Point: May 2023 (June 8, actually)
Time Period: 30 Years
Value of FTSE 100 at Starting Point: 2840.7
Value of FTSE 100 at Ending Point: 7621.67

Now, we can use the online CAGR Calculator to calculate the CAGR return of FTSE 100 for the last 30 years.

Based on our observation, the average annual FTSE 100 return measured in the last 30 years is 3.34% per year.

20 Year UK Stock Market CAGR Returns Measured Via FTSE 100

20 Year Stock Market Chart for FTSE 100 Index [May 2003 – May 2023]

20 Year FTSE 100 CAGR

From the stock price chart above, we note down the important data points:

Start Point: May 2003
End Point: May 2023 (June 8, actually)
Time Period: 20 Years
Value of FTSE 100 at Starting Point: 4048.1
Value of FTSE 100 at Ending Point: 7617.92

Now, we can use the online CAGR Calculator to calculate the CAGR return of FTSE 100 for the last 20 years.

Based on our observation, the average annual FTSE 100 return measured in the last 20 years is 3.21% per year.

10 Year UK Stock Market CAGR Returns Measured Via FTSE 100

10 Year Stock Market Chart for FTSE 100 Index [May 2013 – May 2023]

10 Year FTSE 100 CAGR

From the stock price chart above, we note down the important data points:

Start Point: May 2013
End Point: May 2023 (June 8, actually)
Time Period: 10 Years
Value of FTSE 100 at Starting Point: 6583.1
Value of FTSE 100 at Ending Point: 7621.40

Now, we can use the online CAGR Calculator to calculate the CAGR return of FTSE 100 for the last 10 years.

Based on our observation, the average annual FTSE 100 return measured in the last 10 years is 1.48% per year.

5 Year UK Stock Market CAGR Returns Measured Via FTSE 100

5 Year Stock Market Chart for FTSE 100 Index [May 2018 – May 2023]

5 Year FTSE 100 CAGR

From the stock price chart above, we note down the important data points:

Start Point: May 2018
End Point: May 2023 (June 8, actually)
Time Period: 5 Years
Value of FTSE 100 at Starting Point: 7701.8
Value of FTSE 100 at Ending Point: 7622.06

Now, we can use the online CAGR Calculator to calculate the CAGR return of FTSE 100 for the last 10 years.

Based on our observation, the average annual FTSE 100 return measured in the last 5 years is -0.21% per year.

UK Stock Market CAGR: Summary

30 Year UK Stock Market CAGR: 3.34%
20 Year UK Stock Market CAGR: 3.21%
10 Year UK Stock Market CAGR: 1.48%
5 Year UK Stock Market CAGR: -0.21%

Based on our analysis, the UK stock market’s historical performance during the last 5, 10, 20, and 30 years has been very lacklustre and unattractive, especially compared to the US stock market.

Read about US Stock Market Returns: