Understanding the FTSE 100: A Beginner’s Guide for U.S. Investors If you're a U.S.-based investor exploring global markets, the FTSE 100 might have caught your attention. This benchmark index offers insights into the United Kingdom’s stock market and presents intriguing opportunities for international diversification. But what exactly is the FTSE 100, and why should American investors care? Let’s break it down. What is the FTSE 100? The FTSE 100 (commonly pronounced "footsie") is the Financial Times Stock Exchange 100 Index . It represents the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalization. These companies span a wide range of industries, including finance, energy, healthcare, and consumer goods. Think of the FTSE 100 as the UK's equivalent of the S&P 500 or Dow Jones Industrial Average in the U.S. While it may focus on fewer companies, it still provides a snapshot of the broader UK economy's performance. Key Fe...