The following chart shows the 40 ETFs with the highest trading volumes and their correlations with the FTSE 100 Index. The ETFs are ranked by correlation; the ETFs at the top of the chart have the closest correlation with the FTSE 100 Index.
Notes:
- The iShares World, S&P500 and Emerging Markets ETFs are grouped at the top of the table; so don’t expect much diversification away from the FTSE 100 Index by investing in these.
- For proper diversification away from FTSE 100 Index investors need to look at the bond ETFs at the bottom of the table.
