The stellar track record of the S&P 500 is the foundation of modern investing. But what if index trackers had been invented in the UK in 1900? How would that look?

 

Almost a quarter of a century ago, Warren Buffett urged investors to put their money into index trackers. The Sage of Omaha said:
 
“Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.”

Buffett’s dictum rests upon the empirical fact that the market is extremely hard to beat. Afterall, US stocks have returned an astounding 10 % annualised in dollar terms since 1900.

But what if the index fund had not been invented in 1970s America? What if the grandaddy of ETFs had first launched in Britain over 100 years ago? Would a UK equities ETF be a great advert for buy and hold investing?

The good news is that if your great-great grandparents could have invested in a UK index tracker back then, it would have compounded at a solid 8.77 % annualised.

And while the UK’s share of global indices has declined in recent years, the FTSE All-Share has actually outperformed the MSCI World since the latter’s launch: 11.05 % to 10.39 % (annualised returns, 1970-2025).

So to celebrate the UK’s status as a stock market investing powerhouse, we thought it would be fun to imagine a justETF webpage for a UK equities ETF launched at the dawn of the 20th century.

In so doing, we’re able to recreate the British investing experience over the past 126 years. At least in an alternative universe where you could send a telegram to your broker and place an order for shares in the new-fangled Exchange Traded Funds that were causing such a stir back in 1900…

 

The UK Equities Grandaddy ETF

 
Ticker: GDAD
Description: The UK Equities Grandaddy ETF tracks the largest and most traded British firms from 1900 to 2025. From 1962 to the present, it follows the FTSE All-Share index which covers 98 % of the London Stock Exchange by market capitalisation. Index: Composite UK stock index / FTSE All-Share
Investment focus: Equity, UK
Total expense ratio: Cheap at the price
Replication: Physical
Legal structure: ETF
Strategy risk: Long only
Fund currency: GBP
Currency risk: Currency unhedged
Inception: 1 January 1900
Distribution policy: Accumulating
Fund domicile: UK

 

 

 

Returns overview of the UK Equities Grandaddy ETF

 

Years Cumulative total return Annualised total return
1 24.02 % 24.02 %
3 46.51 % 13.58 %
5 73.94 % 11.71 %
10 123.44 % 8.37 %
15 199.01 % 7.58 %
20 283.86 % 6.96 %
25 328.32 % 5.99 %
30 720.97 % 7.27 %
35 1685.98 % 8.58 %
40 3230.01 % 9.16 %
45 9871.11 % 10.77 %
50 24217.68 % 11.61 %
100 1026233.23 % 9.68 %
126 years (MAX) 4001376.55 % 8.77 %
Source: justETF research, 09/05/2026.

 

Total returns for every year 1900-2025 of the UK Equities Grandaddy ETF

 


 

Best and worst annual returns of the UK Equities Grandaddy ETF

 

Year Best annual returns Year Worst annual returns
1975 154.51 % 1974 -51.51 %
1959 50.28 % 2008 -29.93 %
1968 48.59 % 1973 -28.56 %
1971 47.21 % 2002 -22.68 %
1977 45.48 % 1920 -22.63 %
1954 41.75 % 1931 -17.75 %
1958 41.55 % 1930 -13.42 %
1980 37.19 % 2001 -13.29 %
1989 35.52 % 1937 -12.33 %
1922 35.48 % 1969 -11.83 %
Source: justETF research, 09/05/2026.