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What happens when a firm enters the FTSE 100? watch

    • Thread Starter

    Now, I am asking this question because I keep seeing stats saying 'if you had invested in the FTSE 100 20 years ago, you will have x amount of returns etc'. However, I'm sure that some companies will have entered the FTSE 100 and some companies will have left the FTSE 100 during the same time span...which begs the question: Is it inaccurate to compare returns by looking at the FTSE 100 today compared to the value of the FTSE 100 20 years ago.

    (I'm basing this off the assumption that when you invest in the FTSE 100 you're actually investing into each individual business within that group meaning that if a new firm joins at a later date, the investor will not have shares in them meaning the new value of the FTSE 100 becomes less relevant to them)
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