In recent years the FTSE 250, Britain’s mid-cap index, has outperformed its blue-chip counterpart, the FTSE 100. The 250 index’s constituents make 50% of their sales in Britain, compared with 20% for the FTSE 100, says the FT’s Michael Hunter.
So they have tended to benefit more from the domestic economic recovery; the FTSE 100 was also hampered by its skew towards commodities. But this year the blue chips have done slightly better. There is a sense among investors that the recovery has lost steam, while the more UK-exposed index is also bearing the brunt of Brexit uncertainty.