Trading UK Sector Indices
Trade 11 UK Sector Indices including Energy, Finance and Industrials with City Index.
- Trade with just 10% margin
- Choice of 11 UK Sector Indices
- Fast and reliable execution
|UK Business Services||45|
|UK Customer Services||45|
|UK Non-Energy Materials||32|
|UK Consumer Non-Cyclicals||45|
Trade UK Sector Indices
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Spread Betting and CFD Trading
City Index offers Spread Betting and CFD Trading on UK Sector Indices. Typically, UK investors choose Spread Betting because any profits are free from UK Capital Gains Tax (CGT)*.
Tax-free trading in UK*
£ per point
No UK Capital Gains Tax (CGT)
or Stamp Duty*
Global Indices, FX, Shares,
Commodities & more
Trade Indices risk-free with a demo account
Why City Index?
Why trade UK Sector Indices?
How to trade UK Sector Indices
UK Sector Indices allow you to speculate on industry-wide trends without having to take/trade multiple equity positions in a given sector. Sector Indices also enable you to hedge your portfolio or express a directional view of a market.
Many traders use Sector Indices to:
- Hedge equity positions
- Manage risk and volatility
- Gain exposure to large-cap equities
- Secure a source of liquidity
- Take a risk-reward position
Traders most often use fundamental analysis to determine a position on each specific sector.
Sectors with higher dividend yields often become more desirable in bearish markets; while sectors with lower dividend yields tend to fare better in bullish markets.How to trade UK Sector Indices
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Learn to trade UK Sector Indices
Learn how to trade Indices using this Spread Betting tutorial
How to identify trading opportunities using our research tools
Trade UK Sector Indices risk-free with a demo account
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DNA of a UK Sector Index
Price-weighted Sector Indices
The index is calculated by adding together the share price of each stock in the index, then dividing by the number of stocks in that index. Higher priced stocks exert more influence on the performance of the index.
Market capitalisation weighted Sector Indices
The index is calculated by adding up the market capitalisation of each stock, then dividing by the amount of companies. Larger companies with a higher market cap will exert more influence on the performance of the index.
Not all companies in an index are created equal
The composition of an index will change from time to time, based on the rules the index calculator has established. Some companies can be given a larger weighting than others. This means they make up more of the index, and their share price will have more influence over the performance of the index.
Consider for each UK Sector Index:
- Which companies are included
What are the rules for companies to be added or removed?
- How often is the index changed?
This is sometimes referred to as rebalancing; some companies will be removed, and others added on a periodic basis.
The price of a UK Sector Index is changing all the time, as the prices of the underlying shares change.
Our UK Sector Indices markets
- UK Business Services - Services targeted toward businesses, including administrative, support, janitorial, and professional services.
- Example constituents: Capita, Hays, Rentokil, Serco Group
- UK Consumer Non-Cyclicals - Products targeted toward individual and consumer needs, including groceries, beverages, health and personal care items.
- Example constituents: AG Barr, J Sainsbury, Pearson, Unilever
- UK Consumer Services – Services targeted toward individuals, including accommodation, food and beverage retail, gaming, arts, entertainment and recreation.
- Example constituents: 888 Holdings, JD Wetherspoon, TUI AG, Whitbread
- UK Energy - Oil and gas exploration and production, pipeline transportation, refineries, and oil and gas equipment and services.
- Example constituents: BP, DCC, Glencore, Royal Dutch Shell (RDSA)
- UK Finance - Financial products and services offered by institutions involved in banking, insurance, investment, speciality finance, and real estate.
- Example constituents: Admiral Group, Hiscox Ltd, London Stock Exchange Group, TBC Bank Group
- UK Healthcare - Products and services that are designed, developed, and utilized in the promotion of health and well-being.
- Example constituents: AstraZeneca, GlaxoSmithKline, Oxford Biomedica, Vectura Group
- UK Industrials - Products and services for industrial use or with applications in aero-space, defence or security, transport, construction, and related infrastructure.
- Example constituents: BAE Systems, Ferguson, Renishaw, Royal Mail
- UK Non-Energy Materials - Basic and intermediate material products, including non-energy mining, forestry, timber logging, and lumber production.
- Example constituents: Anglo American, Ferrexpo, Rio Tinto, Tate & Lyle
- UK Technology - Semiconductor, electronic, and optics-based products and related software.
- Example constituents: Aveva Group, Informa, Relx Plc, Sage Group
- UK Telecommunications - Services designed to promote or enhance transmission of voice, data, and video over various communications mediums.
- Example constituents: BT Group, KCOM Group, TalkTalk Telecom Group, Vodafone Group
- UK Utilities - Gas, electricity, and water services delivered directly to residential and commercial users.
- Example constituents: Centrica, National Grid, SSE, United Utilities Group
What moves UK Sector Indices?
UK Sector Indices tend to be affected by broader market movement which affects the price of many companies. Typical examples include:
- The performance of the shares within that index
- Good or bad news affecting several big companies in that sector
- Changes to interest rates
Start trading indices with City Index
- At City Index we provide 11 unique UK Sector Indices
- Trade with a margin of 10%
- Find out more about our UK Sector Indices spreads and pricing