What is ESG investing?

ESG investing is a strategy that considers environmental, social, and governance factors when selecting investments. 

Rather than focusing solely on financial returns, ESG investing also evaluates how companies manage risks and opportunities related to:

• Environmental impact (e.g. carbon emissions, waste management, energy efficiency)
• Social practices (e.g. employee treatment, community impact, supply chain ethics)
• Governance structures (e.g. executive pay, board diversity, shareholder rights)

While financial performance remains important, ESG investing applies an additional layer of scrutiny to assess whether a company acts responsibly and sustainably.

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How ESG investing works

At its core, ESG investing uses specific non-financial criteria to screen or select investments. This can be done in several ways:

• Positive screening: Choosing companies that score highly on ESG factors
• Negative screening: Excluding companies that operate in controversial industries (e.g. tobacco, fossil fuels)
• ESG integration: Incorporating ESG analysis alongside traditional financial metrics
• Thematic investing: Focusing on specific ESG-related themes like clean energy or gender diversity
• Engagement and stewardship: Actively engaging with companies to encourage better ESG practices

Many fund managers and platforms now offer ESG-labelled products, often relying on third-party ESG ratings to guide decisions.

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An example of ESG investing

Imagine an investor wants to support the transition to a low-carbon economy.

Instead of buying shares in a traditional energy company, they invest in a fund that holds companies developing renewable energy technologies, such as wind or solar power.

At the same time, they may avoid companies with poor track records on pollution or that are heavily reliant on coal production.

This kind of decision reflects an ESG mindset, considering not just potential returns, but the broader impact of each investment.

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Advantages and Disadvantages of ESG Investing

Advantages of ESG investing include:

• Alignment with values: Investors can support causes they care about without sacrificing financial goals.‍
• Risk management: Companies with strong ESG practices may be better positioned to handle long-term risks.‍
• Growing demand: Interest in ESG is increasing, which may drive innovation and market opportunities.

Disadvantages of ESG investing include:

• Inconsistent ratings: ESG scores can vary between providers, leading to confusion.‍
• Greenwashing: Some companies may overstate their ESG credentials without meaningful action.‍
• Limited track record: While ESG funds have grown, long-term performance data is still evolving.

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ESG metrics used

Measuring ESG performance involves analysing both qualitative and quantitative indicators. Common metrics include:

• Carbon emissions and energy usage (Environmental)
• Workforce diversity, employee turnover (Social)
• Board independence, executive compensation (Governance)

These metrics are typically aggregated into an ESG score by third-party rating agencies. However, scoring methods vary, making it important for investors to look under the surface rather than relying on a single number.

In the UK, regulatory bodies like the Financial Conduct Authority (FCA) are working to improve transparency and standardisation in ESG disclosures, but this remains a developing area.

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How ESG differs from sustainable investing

While ESG and sustainable investing often overlap, they’re not identical. ESG investing focuses on how environmental, social, and governance risks and opportunities affect a company’s performance and, in turn, an investor’s returns.

Sustainable investing prioritises broader long-term goals, such as promoting a more sustainable future, even if the financial returns take longer to materialise.

In simple terms, ESG is often about risk and responsibility, while sustainable investing is more explicitly mission-driven.

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Other considerations for UK investors

• Regulation and Disclosure. The UK has committed to making climate-related financial disclosures mandatory for many large companies and asset managers. This is intended to help investors make more informed decisions and reduce the risk of greenwashing.‍
• Tax and Investment Wrappers. As with any investment, ESG assets can be held in ISAs or SIPPs, offering potential tax advantages. However, ESG status doesn't inherently make an investment more or less tax-efficient.‍
• Due Diligence is Key. Regardless of ESG labels, it’s important for investors to review the fund’s holdings, strategy, and costs, and ensure it aligns with their personal goals and risk tolerance.

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The bigger picture of values-based investing

ESG investing offers a growing range of options for UK investors who want to align their financial decisions with their values.

It’s not about choosing between returns or responsibility, but about understanding how both can work together when guided by thoughtful analysis.

As ESG awareness matures, many investors are exploring even more focused strategies, like thematic investing, which allows you to back specific trends or ideas (such as clean tech, water security, or ageing populations).

Next in this series: Fractional Shares: Investing in Pieces, where we’ll explain how fractional investing works, and how it’s opening up access to markets for beginners.

What is passive income?

Passive income refers to earnings generated with minimal ongoing effort. Unlike active income, such as wages from employment, passive income typically stems from investments, a side business, or assets that continue to generate returns without your daily involvement.

In investing, passive income can take various forms: interest from savings, dividends from stocks, rental income from property, or returns from bonds and funds. 

While setting up these income streams often requires upfront capital or effort, the long-term goal is a source of financial stability that works for you in the background.

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Advantages and disadvantages of passive income

Advantages of passive income could include:

• Financial freedom: Passive income can supplement or even replace earned income, offering more control over your time.
• Compounding benefits: Reinvesting passive earnings can accelerate long-term wealth accumulation.
• Diversification: Passive income streams can help balance risk across different asset classes and reduce reliance on employment income.

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Disadvantages of passive income could include:

• Capital requirements: Many passive income strategies require an initial investment, whether in time, money, or both.
• Market and interest rate risk: Investment returns may fluctuate, especially with stocks, bonds, and property.
• Maintenance considerations: Some “passive” strategies (like rental property) require ongoing management or decision-making.

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Passive income investing ideas

Passive income doesn’t come from a one-size-fits-all approach. Here are several tried-and-tested investing avenues for UK investors:

Dividend Stocks

Dividend-paying shares distribute a portion of a company’s profits to shareholders, typically on a quarterly or annual basis. These can provide a regular income stream in addition to any potential capital gains if the share price rises. Understand how stocks work.

• Tax note: UK investors benefit from a tax-free dividend allowance (subject to change), but income above this threshold may be taxable. Chip does not offer tax advice.
• Risk level: Moderate to high, dependent on market volatility and company performance.
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Mutual Funds & Index Trackers

Rather than picking individual shares, investing in mutual funds or index trackers offers exposure to a broad range of assets. Some funds are designed to focus on income-generating holdings, distributing returns to investors at regular intervals.

• Example instruments: UK-focused equity income funds, global dividend funds.
• Risk level: Varies, diversified funds tend to carry lower risk than individual stocks.
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Income Bonds

Income bonds (not to be confused with NS&I Income Bonds) are debt securities that pay investors regular interest over time. These are popular among risk-averse investors who prioritise predictable income.

• Considerations: Interest rates affect bond performance, when rates rise, existing bonds may become less attractive.
• Liquidity: Some income bonds can be difficult to sell before maturity.
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Property & Real Estate

Buy-to-let properties or investments in Real Estate Investment Trusts (REITs) can provide regular rental income and potential property value growth.

• Management effort: Rental properties involve ongoing responsibilities, finding tenants, property maintenance, and legal compliance.
• Upfront costs: Stamp duty, mortgage deposits, and ongoing fees can be significant.
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Savings Accounts

While not typically thought of as an "investment", high-interest savings accounts and cash ISAs can generate passive income in the form of interest.

• Best suited for: Conservative investors seeking capital preservation and low risk.
• Returns: Generally lower than other investment vehicles, especially during inflationary periods.

Learn more about investment types and asset classes.

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Passive and active investing summary

Passive income can be a powerful pillar in your overall investing strategy, especially for those seeking long-term wealth with less hands-on effort. 

While it's not entirely “effort-free,” with the right knowledge and setup, passive investing can complement, or even surpass, active income over time.

In the next part of our Investment Strategies series, we’ll explore the Buy and Hold strategy, a long-term option for those looking to build wealth through passive income channels.

What are the biggest companies in South America by market cap?

This list ranks South America’s biggest public companies by market capitalisation. We’ll also highlight other key figures, such as revenue, gross profit, and 1-year return. Key facts like the company's exchange, founding year, and country are also covered.

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1. MercadoLibre (MELI)

• Market cap: $127.3 billion
• Revenue: $24.1 billion
• Gross profit: $11.05 billion
• 1-yr return: +18.99%
• Exchange: NASDAQ
• Year founded: 1999
• Country: Uruguay

Often called the "Amazon of Latin America," MercadoLibre is the dominant e-commerce and payments platform in the region.

• E-Commerce: Operates a massive online marketplace connecting millions of buyers and sellers.
• Fintech: Its Mercado Pago division provides a full suite of financial services, including digital payments, credit, and asset management.

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2. Petrobras (PBR)

• Market cap: $82.4 billion
• Revenue: $91.05 billion
• Gross profit: $37.72 billion
• 1-yr return: -10.15%
• Exchange: NYSE
• Year founded: 1953
• Country: Brazil

Petrobras is Brazil's state-owned and largest oil and gas company, with a major focus on deep-water oil exploration and production.

• Exploration and production: A global leader in deep and ultra-deepwater oil extraction technology.
• Refining and distribution: Manages oil refineries, pipelines, and a large network of service stations across Brazil.

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3. Nu Holdings (NU)

• Market cap: $77.34 billion
• Revenue: $10.33 billion
• Gross profit: N/A
• 1-yr return: +9.21%
• Exchange: NYSE
• Year founded: 2016
• Country: Brazil

Nu Holdings is the parent company of Nubank, one of the world's largest independent digital banks. It has disrupted the traditional banking sector in Latin America.

• Digital banking: Offers a user-friendly mobile app providing free credit cards, bank accounts, and loans.
• International expansion: Rapidly growing its customer base in Mexico and Colombia in addition to its core Brazilian market.

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4. Itaú Unibanco (ITUB)

• Market cap: $73.74 billion
• Revenue: $62.93 billion
• Gross profit: N/A
• 1-yr return: +20.56%
• Exchange: NYSE
• Year founded: 1924
• Country: Brazil

Itaú Unibanco is Brazil's largest private-sector bank and one of the most valuable financial institutions in the world.

• Retail banking: Provides a full range of services to millions of individual customers, including accounts, credit cards, and mortgages.
• Wholesale banking: Caters to large companies and institutional investors with services like investment banking and treasury management.

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5. Vale (VALE)

• Market cap: $46.29 billion
• Revenue: $38.21 billion
• Gross profit: $12.55 billion
• 1-yr return: -1.62%
• Exchange: NYSE
• Year founded: 1942
• Country: Brazil

Vale is one of the world's largest producers of iron ore and nickel, key ingredients for the steel and electric vehicle industries.

• Iron ore production: Operates vast mining complexes in Brazil, producing high-grade iron ore for the global steel market.
• Base metals: A leading global producer of nickel, essential for EV batteries, as well as copper and cobalt.

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6. Ambev (ABEV)

• Market cap: $36.54 billion
• Revenue: $16.59 billion
• Gross profit: $7.67 billion
• 1-yr return: -2.54%
• Exchange: NYSE
• Year founded: 1853
• Country: Brazil

Ambev is a brewing giant and a subsidiary of Anheuser-Busch InBev. It is the largest beverage company in Latin America.

• Beer production: Brews and distributes a huge portfolio of popular beer brands, including Skol, Brahma, and Antarctica.
• Soft drinks: Holds the license to produce, sell, and distribute PepsiCo products in Brazil and other Latin American countries.

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7. Banco Bradesco (BBD)

• Market cap: $33.25 billion
• Revenue: $55.8 billion
• Gross profit: N/A
• 1-yr return: +27.66%
• Exchange: NYSE
• Year founded: 1943
• Country: Brazil

Banco Bradesco is one of Brazil's largest banking and financial services companies, known for its extensive branch network and insurance operations.

• Banking: Offers a complete range of banking services to individuals, small businesses, and large corporations.
• Insurance: A market leader in Brazil's insurance sector, providing auto, health, life, and property insurance.

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8. WEG (WEGE3)

• Market cap: $28.77 billion
• Revenue: $7.1 billion
• Gross profit: $12.86 billion
• 1-yr return: -34.56%
• Exchange: BMFBOVESPA
• Year founded: 1961
• Country: Brazil

WEG is a multinational company that is a global leader in the manufacturing of electric motors and industrial automation equipment.

• Industrial motors: A top global supplier of electric motors, generators, and transformers for a wide range of industries.
• Renewable energy: A major player in the wind and solar energy sectors, producing wind turbines and solar power components.

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9. Ecopetrol (ECOPETROL)

• Market cap: $19.78 billion
• Revenue: $30.95 billion
• Gross profit: $8.72 billion
• 1-yr return: +4.86%
• Exchange: NYSE
• Year founded: 1948
• Country: Colombia

Ecopetrol is Colombia's largest and primary petroleum company, engaged in all parts of the oil and gas chain.

• Exploration and production: Manages oil and gas exploration and production activities primarily within Colombia.
• Refining and petrochemicals: Operates the country's main refineries and is involved in the production of petrochemicals.

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What are the biggest companies by total annual revenue?

• Petrobras: $91.05 billion 
• Itaú Unibanco: $62.93 billion 
• Banco Bradesco: $55.80 billion 
• Vale: $38.21 billion 
• Ecopetrol: $30.95 billion

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What are the biggest companies by workforce?

• Vale: 236,100 
• Ambev: 57,000 
• MercadoLibre: 54,338 
• Itaú Unibanco: 51,700 
• Petrobras: 46,730

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in India by market cap.

All market data sourced from TradingView and company reports as of 25.09.2025.

What are the biggest companies in the world by market cap?

This list ranks the world’s biggest companies by market capitalisation, the cumulative value of a company's total outstanding market shares. We’ll also be highlighting other key figures, such as the company's revenue, gross profit, and 1-year return (all based on the previous fiscal year). 

Some other key facts such as the exchange the company is listed on, the founding year and country the company is headquartered in are also covered. 

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1. NVIDIA Corp.

• Market cap: $4.39 trillion
• Revenue: $148.51 billion
• Gross profit: $104.12 billion
• 1-yr return: +42.87%
• Exchange: Nasdaq
• Year founded: 1993‍
• Country: United States

NVIDIA designs powerful chip solutions supplying various innovative industries:

• AI and datacentres: GPUs that companies like Microsoft and Google use to build AI services. 
• Gaming: ‘GeForce’ graphics cards that power high-quality video games on PCs. 
• Professional & Automotive: Chips for film special effects, car infotainment systems, and self-driving technology.

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2. Microsoft Corp.

• Market cap: $3.75 trillion
• Revenue: $281.72 billion
• Gross profit: $193.89 billion
• 1-yr return: +20.93%
• Exchange: Nasdaq
• Year founded: 1975‍
• Country: United States

Microsoft’s software offers a range of services to businesses and consumers:

• Cloud computing: Supply computer power and storage to businesses using their Azure software. 
• Software: The Windows operating system and Office suite (Word, Excel, Powerpoint) powers PCs and productivity for businesses and consumers.
• Gaming: Own Xbox and major gaming franchises like Call of Duty.
• Other: Invest in AI with their OpenAI partnership and own professional social network LinkedIn.

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3. Apple Inc.

• Market cap: $3.37 trillion
• Revenue: $408.63 billion
• Gross profit: $190.74 billion
• 1-yr return: +0.67%
• Exchange: Nasdaq
• Year founded: 1976‍
• Country: United States

Apple are a global giant in consumer electronics and digital services:

• Consumer electronics: iPhone, Mac computers, iPads, the Apple Watch, and AirPods.
• Services: App Store, Apple Music, iCloud storage, and Apple TV+.

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4. Alphabet Inc. (Google)

• Market cap: $2.53 trillion
• Revenue: $371.21 billion
• Gross profit: $218.73 billion
• 1-yr return: +25.58%
• Exchange: Nasdaq
• Year founded: 2015‍
• Country: United States

Most of Alphabets revenue comes from advertising on its Google Search and Youtube platforms:

• Google Search & Ads: Core revenue stream comes from selling ads on their search engine and network of other websites. 
• Android: Operating system with widespread applications in mobile devices.
• Youtube: World’s largest online video platform, generating revenue from advertising on videos. 
• Google Cloud: Cloud computing business that competes with Microsoft and Amazon.
• Other bets: Series of investments in future facing projects (Access, Calico, CapitalG, GV, Verily, Waymo, and X)

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5. Amazon.com Inc. 

• Market cap: $2.43 trillion
• Revenue: $670.04 billion
• Gross profit: $332.38 billion
• 1-yr return: +28.53%
• Exchange: Nasdaq
• Year founded: 1994‍
• Country: United States

Amazon’s two main revenue streams are its world leading online store and cloud computing services:

• E-Commerce: Amazon generates profit from selling its own products and charging commission to sellers on their platform. They also make money from advertising on the site and their Amazon Prime subscription services. 
• Amazon Web Services (AWS): Largest revenue source for Amazon comes from its market leading cloud computing services — clients include Netflix and NASA.  

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6. Meta Platforms Inc. 

• Market cap: $1.89 trillion
• Revenue: $178.8 billion
• Gross profit: $146.53 billion
• 1-yr return: +40.30%
• Exchange: Nasdaq
• Year founded: 2004‍
• Country: United States

The social media giant that owns Facebook, Instagram, Messenger, and WhatsApp — nearly all of its revenue comes from the highly targeted advertising that reaches its user base.

• Targeted ads: Driven by data collected from their users base that allows advertisers to target different user groups.
• The Metaverse: Investing billions of dollars developing virtual and augmented reality hardware and software. 

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7. Saudi Arabian Oil Co.

• Market cap: $1.53 trillion
• Revenue: $460.55 billion
• Gross profit: $217.87 billion
• 1-yr return: –14.29%
• Exchange: Saudi Exchange
• Year founded: 1933‍
• Country: Saudi Arabia

State-owned energy giant that is one of the largest and most profitable oil producers in the world:

• Exploration and extraction: Identifying, drilling and pumping sources of crude oil and natural gas, benefitting from having some of the lowest production costs in the world. 
• Refinement and distribution: Refining crude oil into products like petrol, diesel, and chemicals, which are then sold globally.

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8. Broadcom Inc. 

• Market cap: $1.38 trillion
• Revenue: $57.03 billion
• Gross profit: $35.21 billion
• 1-yr return: +78.29%
• Exchange: Nasdaq
• Year founded: 1961‍
• Country: United States

Technology company designing chips for networking and smartphones, and sells essential software to large corporations. 

• Semiconductors (Chips): They design and sell a wide range of chips essential for Wi-Fi and Bluetooth in smartphones (key supplier for Apple), as well as networking equipment in data centers. 
• Cloud services: Large software companies (like VMware) that supply big businesses with IT and cloud computing infrastructure on a subscription basis. 

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9. Tesla Inc.

• Market cap: $1.12 trillion
• Revenue: $92.72 billion
• Gross profit: $16.21 billion
• 1-yr return: –11.15%
• Exchange: Nasdaq
• Year founded: 2003‍
• Country: United States

Tesla is the world’s leading manufacturer of electric vehicles, with further focus on energy and artificial intelligence.

• Electric cars: Main source of revenue and profit comes from their line of EVs like the Model Y, Model 3, Model X and Cybertruck. 
• Energy generation & storage: Renewable energy for consumers and businesses from solar panels and batteries — the Powerwall for homes and Megapack for utility companies. 
• Future goals: A large portion of Tesla’s valuation is based on future plans for technology like full self-driving technology and developing humanoid robots. 

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10. Berkshire Hathaway Inc.

• Market cap: $1.05 trillion
• Revenue: $370.15 billion
• Gross profit: $89.41 billion
• 1-yr return: +8.04%
• Exchange: New York Stock Exchange
• Year founded: 1893‍
• Country: United States

A huge holdings company that owns and invests in a diverse network of businesses.

• Owns companies: Key examples include GEICO (car insurance), BNSF (major American railway) and Duracell (batteries). The profits of all these companies flow into Berkshire. 
• Invests in stocks: They own a huge stock portfolio with large holdings in Apple, American Express, Bank of America and the Coca-Cola Company.
• The Model: They use cash from their businesses profits and stock growth to buy more businesses and stock, creating a powerful cycle of long-term growth. 

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What are the biggest companies by total annual revenue?

• Walmart: $680.00 billion
• Amazon: $637.96 billion
• Saudi Arabian Oil Co.: $479.17 billion
• UnitedHealth Group: $400.28 billion
• Apple: $391.04 billion

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What are the biggest companies by workforce?

• Walmart: 2.1 million
• Amazon.com: 1.56 million
• BYD: 968,870
• Accenture: 774,000
• Volkswagen: 679,470

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in the United Kingdom by market cap. 

All market data sourced from TradingView as of 26.08.2025.

What is a workplace pension? 

A workplace pension is a scheme set up by an employer to provide retirement benefits for its employees. A percentage of your pay is put into the pension scheme automatically every payday.

In most cases, your employer also adds money into the scheme for you, and the government adds tax relief.

This means that for every £100 that lands in your pension pot, it might only cost you £50 or £60 from your take-home pay; which can really add up long term.

Read our full guide on pensions tax, relief and allowances.

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The two core types

While there are many different names for pension schemes, almost all of them fall into two main categories based on how the money is calculated. 

What are defined contribution pensions?  

Most modern workplace pensions are Defined Contribution (DC) schemes. You and your employer pay into a ‘pot’. This is invested market into different assets such as shares, bonds and property

The amount you get out at the other end when you retire, depends on how much was paid in and how well the investments within your pot performed. The final amount is not guaranteed.

What are defined benefit pensions? 

These are sometimes called ‘final salary’ or ‘career average’ schemes. They are now a rare find in private sector employment (though you may have one from an older job)  but remain common in the public sector e.g. the NHS. 

Under defined benefit schemes, employers promise to pay you a specific income for life when you retire. The amount is calculated based on a combination of your salary and years of service. The investment risk is held by the employer, not you. 

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How workplace pensions are structured

Behind the scenes, workplace pensions are set up in different legal ways. They are generally split into occupational (trust-based) schemes and group (contract-based) schemes.

Occupational pensions 

In occupational pension schemes, the pension is held in a trust and looked after by a board of trustees who have a legal duty to look after the members’ interests.

What is a company pension scheme? 

Historically, large companies ran their own pension trusts. Today, most modern ‘company pensions’ are actually master trusts (like Nest, The People’s Pension, or NOW: Pensions).

These are large multi-employer trusts that run the pension scheme on behalf of many different businesses.

What is an auto-enrolment pension scheme? 

Auto-enrolment is not a pension product in itself, but the government rules that determine who must be enrolled and what minimum contributions apply.

The pension your employer uses to fulfil this obligation will be one of the scheme types listed above.

Under Automatic Enrolment, employers must enrol eligible staff (aged 22 to State Pension age, earning at least £10,000) into a pension scheme.

These rules ensure there is a minimum contribution of 8% of qualifying earnings — 3% from the employer and 5% from the employee.

What is a SSAS pension? 

A Small Self-Administered Scheme (SSAS) is a niche type of occupational pension, usually set up by the directors of a small business.

A SSAS offers significant flexibility, allowing the pension to loan money to the employer for business costs, or to buy the company’s commercial premises directly in a tax-efficient way.

These schemes are generally a tool for business owners, not employees. 

Group pension schemes 

In these schemes, the employer hires a pension provider, but the contract is legally between you (the employee) and the provider.

What is a standard group pension?  

Also known as a Group Personal Pension (GPP), this is the most common type of private sector pension. The employer chooses a provider (like Aviva, Royal London, or Scottish Widows) to run the scheme. The provider claims tax relief for you and manages the investments. 

What is a group SIPP?  

A group Self-Invested Personal Pension (SIPP) is a GPP with added flexibility. A standard GPP generally offers a limited choice of funds, a group SIPP allows employees to choose their own investments, often including individual shares. 

What is a group stakeholder pension?  

Stakeholder pensions were introduced by the government in 2001 as a simple, low-cost option with capped fees and flexible contributions.

They have largely been replaced by modern GPPs and Auto-enrolment schemes, but some older schemes still exist.

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Other key concepts

What is salary sacrifice? 

Salary sacrifice is a way to structure your pension contributions to save tax. You agree to sacrifice a portion of your salary in exchange for your employer paying the same amount into your pension as their contribution.

Because this technically makes your salary lower, you pay less National Insurance (and so does your employer). You end up with the same amount in your pension, but your take home pay is slightly higher. 

From April 2029, NI relief on salary sacrifice pension contributions will be capped at £2,000 per year. Contributions above this will attract National Insurance for both you and your employer. Income tax relief on contributions is unaffected.

Worth knowing: 

• Salary sacrifice reduces your official contractual salary, which can have knock-on effects in a few areas. Mortgage lenders use your contractual salary when assessing affordability, so a heavily sacrificed salary could affect how much you can borrow.
• Statutory payments such as maternity and paternity pay are also calculated on your reduced salary. If your life insurance or death-in-service cover is linked to your salary, this may be lower too. If any of these apply to you, it's worth weighing up the NI saving against the potential impact before committing.

What are public sector pensions? 

These are the pension schemes for workers in the NHS, Civil Service, Teachers, Police, and Armed Forces.

• These are almost always Defined Benefit schemes.
• Unlike private pensions which have a ‘pot‘ of money, most public sector schemes are ‘unfunded’This means there is no central pot; the pensions of retirees today are paid for by the contributions of workers (and taxpayers) today. 

What is an AVC? 

An Additional Voluntary Contribution (AVC) is a way to top up your workplace pension.

• If you’d like to save more than the standard amount, you can pay extra into an AVC pot attached to your main scheme.
• Why use it? AVCs are particularly popular for people in Defined Benefit schemes who want to build up a separate pot of cash to take as a tax-free lump sum, without reducing their guaranteed annual income. 

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Private pensions

Workplace pensions are fantastic for employees, but if you’re self-employed or want to save more than your workplace scheme allows; a private pension could be for you.

There are several options for private pensions depending on who you are, and how much freedom you want to choose your investments. The next guide will go through the possible options and how they work.

What are the biggest companies in Europe by market cap?

This list ranks Europe’s biggest public companies by market capitalisation: the cumulative value of a company's total outstanding market shares. We’ll also be highlighting other key figures, such as the company's revenue, gross profit, and 1-year return (all based on the previous fiscal year). 

Some other key facts such as the exchange the company is listed on, the founding year and country the company is headquartered in are also covered.

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1. SAP SE

• Market cap: $317.7 billion
• ‍Revenue: $37.56 billion
• ‍Gross profit: $26.98 billion
• ‍1-yr return: +20.62%
• ‍Exchange: XETR
• ‍Year founded: 1972
• ‍Country: Germany

SAP is a global leader in enterprise application software. Its systems are a cornerstone of modern business operations.

• Cloud & software: Provides cloud-based solutions and traditional software for managing business operations and customer relations, including ERP (Enterprise Resource Planning).
• Services: Offers expert support, implementation services, and training to help customers maximize the value of their SAP applications.

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2. LVMH Moët Hennessy Louis Vuitton

• Market cap: $292.83 billion‍
• Revenue: $94.62 billion‍
• Gross profit: $65.34 billion‍
• 1-yr return: -21.76%‍
• Exchange: EURONEXT‍
• Year founded: 1987‍
• Country: France

LVMH is the world's largest luxury goods conglomerate, managing a diverse portfolio of prestigious brands.

• Fashion & leather goods: The largest division, featuring iconic brands like Louis Vuitton, Christian Dior, and Fendi.
• Wines & spirits: Owns world-renowned champagne and cognac houses such as Moët & Chandon, Hennessy, and Dom Pérignon.
• Watches, jewellery, & retail: Includes brands like Tiffany & Co., Bulgari, and TAG Heuer, alongside selective retailers like Sephora.

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3. ASML Holding N.V.

• Market cap: $286.99 billion‍
• Revenue: $30.13 billion‍
• Gross profit: $15.48 billion‍
• 1-yr return: -13.77%‍
• Exchange: EURONEXT‍
• Year founded: 1984‍
• Country: Netherlands

ASML is a critical player in the semiconductor industry, holding a near-monopoly on the production of extreme ultraviolet (EUV) lithography machines.

• Lithography systems: Designs and manufactures the complex machines that chipmakers like TSMC, Samsung, and Intel use to create the circuitry on microchips. These systems are essential for producing the most advanced processors in the world.

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4. Roche Holding AG

• Market cap: $259.40 billion‍
• Revenue: $66.27 billion‍
• Gross profit: $46.06 billion‍
• 1-yr return: -3.58%‍
• Exchange: SIX‍
• Year founded: 1896‍
• Country: Switzerland

Roche is a global pioneer in pharmaceuticals and diagnostics, focusing on advancing science to improve people's lives.

• Pharmaceuticals: A world leader in oncology (cancer treatments) and also develops medicines for immunology, ophthalmology, and infectious diseases.
• Diagnostics: Provides a wide range of innovative diagnostic tests and systems that help doctors detect, diagnose, and monitor diseases.

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5. Novo Nordisk A/S

• Market cap: $252.19 billion‍
• Revenue: $36.70 billion‍
• Gross profit: $30.87 billion‍
• 1-yr return: -60.12%‍
• Exchange: OMXCOP‍
• Year founded: 1923‍
• Country: Denmark

Novo Nordisk is a global healthcare company with a primary focus on treating chronic diseases, particularly diabetes.

• Diabetes & obesity care: The world's leading supplier of insulin and has seen massive growth from its highly effective GLP-1 treatments for diabetes and weight loss, such as Ozempic and Wegovy.
• Rare diseases: Develops and markets biopharmaceutical products for treating hemophilia and other rare blood and endocrine disorders.

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6. Hermès International SCA 

• Market cap: $251.24 billion‍
• Revenue: $14.86 billion‍
• Gross profit: $10.45 billion‍
• 1-yr return: -21.56%‍
• Exchange: EURONEXT‍
• Year founded: 1837‍
• Country: France

Hermès is an icon of high-end luxury, renowned for its exceptional craftsmanship, exclusivity, and timeless designs.

• Leather goods & saddlery: The core of its business, famous for its highly sought-after Birkin and Kelly handbags.
• Other categories: Produces a wide range of luxury goods, including silk scarves, ties, ready-to-wear fashion, perfumes, and watches.

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7. AstraZeneca PLC

• Market cap: $245.98 billion‍
• Revenue: $47.92 billion‍
• Gross profit: $39.42 billion‍
• 1-yr return: -5.88%‍
• Exchange: London Stock Exchange‍
• Year founded: 1913‍
• Country: United Kingdom

AstraZeneca is a global, science-led biopharmaceutical company with a focus on creating innovative prescription medicines.

• Oncology: A world leader in cancer treatments, which forms a significant and growing part of its revenue.
• Biopharmaceuticals: Develops medicines for major disease areas like cardiovascular, respiratory, and immunology.

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8. L'Oréal S.A.

• Market cap: $244.94 billion‍
• Revenue: $45.93 billion‍
• Gross profit: $33.72 billion‍
• 1-yr return: +3.01%‍
• Exchange: EURONEXT‍
• Year founded: 1909‍
• Country: France

L'Oréal is the world's largest cosmetics and beauty company, with a vast portfolio of brands covering all segments of the market.

• Consumer products: Mass-market brands like Maybelline, Garnier, and L'Oréal Paris.
• Luxe: High-end brands including Lancôme, Kiehl's, and Yves Saint Laurent Beauté.
• Active cosmetics: Dermatological skincare brands such as La Roche-Posay and CeraVe.
• Professional products: Supplies hair salons with brands like Kérastase and Redken.

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9. Novartis AG

• Market cap: $240.15 billion‍
• Revenue: $50.31 billion‍
• Gross profit: $37.89 billion‍
• 1-yr return: +3.91%‍
• Exchange: SIX‍
• Year founded: 1996‍
• Country: Switzerland

Novartis is a global healthcare company that provides solutions to address the evolving needs of patients worldwide.

• Innovative medicines: Focuses on developing and marketing patented prescription drugs across various therapeutic areas, including cardiovascular, immunology, and neuroscience.
• Sandoz (generic & biosimilars): Operates a major division that produces generic pharmaceuticals and biosimilars after patents on original drugs have expired.

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10. Nestlé S.A.

• Market cap: $237.10 billion‍
• Revenue: $105.13 billion‍
• Gross profit: $49.52 billion‍
• 1-yr return: -16.87%‍
• Exchange: SIX‍
• Year founded: 1866‍
• Country: Switzerland

Nestlé is the largest food and beverage company in the world, with a massive portfolio of well-known brands.

• Powdered & liquid beverages: Includes major coffee brands like Nescafé, Nespresso, and Starbucks (packaged).
• PetCare: A global leader with brands such as Purina, Friskies, and Fancy Feast.
• Nutrition & health science: Produces infant formulas, health supplements, and medical nutrition.
• Confectionery & packaged food: Owns iconic brands like KitKat, Maggi, and Toll House.

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What are the biggest companies by total annual revenue?

• Volkswagen Group: $305.98 billion 
• Shell: $265.74 billion 
• TotalEnergies: $208.61 billion 
• Mercedes-Benz Group: $166.70 billion 
• Uniper SE: $121.36 billion

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What are the biggest companies by workforce?

• Volkswagen Group: 684,013 
• DHL Group: 594,439 
• Schwarz Gruppe: 575,000 
• Compass Group: 550,000 
• Tesco: 337,255

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in China by market cap.

All market data sourced from TradingView and company reports as of 04.09.2025.

What is growth investing?

Growth investing targets companies that investors believe have the potential to grow faster than the broader market. 

These are often newer companies or those operating in rapidly expanding industries like technology, renewable energy, or healthcare innovation.

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Key characteristics of growth investing

• Emphasis on capital appreciation over income (e.g. dividends).
• Companies often reinvest profits to fuel future growth.
• Share prices tend to be more volatile but can offer higher returns over time.
• Commonly priced higher relative to earnings (higher P/E ratios).

Growth investing is typically more suitable for investors with a longer time horizon and a higher risk tolerance, as the payoff often comes from future potential rather than current earnings.

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What is value investing?

Value investing involves identifying companies that appear to be undervalued by the market. 

These are stocks trading below their intrinsic value based on fundamental analysis (like cash flow, earnings, or book value).

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Key characteristics of value investing

• Focus on finding stocks perceived as mispriced.
• Often includes established companies with stable earnings.
• Generally provides dividend income as well as capital growth.
• Less volatility, but potentially slower returns.

This strategy may appeal to more conservative investors looking for steady returns and lower downside risk.

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Examples of Growth and Value Investing

To better understand how these strategies play out in practice, consider how growth and value investors might view the same market differently.

Growth

• A growth investor may be drawn to a fast-growing technology firm that has yet to post consistent profits but is expanding rapidly, reinvesting all earnings into product development and market share. 
• Despite a high valuation relative to current earnings, the investor believes the company’s future potential justifies the price. Sectors like software, green energy, or healthcare innovation often fall into this category.

Value

• In contrast, a value investor might look for a well-established consumer goods company with stable earnings, consistent dividend payouts, and a share price that appears low relative to its earnings or book value. 
• The belief is that the market has temporarily mispriced the company, possibly due to short-term concerns, and that the share price will eventually recover as fundamentals prevail.

Both strategies can be applied using individual stock selection or through diversified investment funds, which pool companies with similar characteristics. 

Many UK investors use index funds or ETFs tailored to either value or growth styles as a simple way to gain exposure while mitigating individual stock risk.

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The Key Differences Between Value and Growth Investing

While both growth and value investing aim to build long-term wealth, they differ in philosophy, risk profile, and timing.

Growth investing is forward-looking. It relies on the market eventually rewarding companies for their innovation and rapid expansion. This often means accepting higher volatility and short-term uncertainty in exchange for the potential of above-average returns.

Value investing, on the other hand, is based on the premise that markets can misjudge a company's worth. By purchasing undervalued companies with strong fundamentals, value investors aim to benefit as the market corrects itself. 

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How to Decide if Value or Growth Investing Is Right for You

Choosing between growth and value investing depends on several personal factors:

• Investment goals: Are you aiming for long-term capital appreciation, or are you seeking steady income and lower volatility?
• Time horizon: Growth investing usually requires a longer time frame to ride out market swings. Value investing may suit those with a medium to long-term horizon looking for more stable returns.
• Risk tolerance: If you're comfortable with market fluctuations and are focused on potential gains, growth may appeal to you. If you prefer less risk and more predictability, value could be a better fit.
• Behavioural tendencies: Some investors struggle with holding onto volatile growth stocks through downturns. Understanding your emotional response to risk is just as important as the numbers.

In reality, many investors find a blend of both strategies provides balance, with growth driving long-term returns and value offering stability.

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Growth and value investing summary

Understanding the core principles of growth and value investing helps lay the foundation for a more thought out and tailored investment strategy. 

While growth investing seeks to capitalise on future potential, value investing focuses on capitalising on perceived mispricings today. Each has its strengths and trade-offs.

By aligning your personal goals, risk tolerance, and time horizon with the appropriate strategy, or combination, you can build a more resilient investment portfolio.

In the next guide, we’ll explore how you can begin to put these strategies into practice through building passive income, a key step in creating financial freedom and long-term wealth.

What is portfolio management? 

Portfolio management is the ongoing process of you selecting, monitoring and adjusting your investments to meet your financial goals.

It’s not just about choosing a few investments and crossing your fingers – it’s about seeing the full picture and making smart, informed choices.

That means thinking about the mix of investments you own (also called asset allocation), how much investment risk you’re taking, and making regular adjustments as life or market conditions change.

Done well, it can help you grow your wealth steadily while keeping risk at a level you’re comfortable with.

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Investment portfolio management examples

The following portfolio management strategies are commonly used:

Cautious portfolio: Might include a large portion of bonds and cash, with a smaller slice in equities.
Great for: people close to retirement or those who don’t want much risk.
Balanced portfolio: Typically splits investments between equities and bonds, aiming for moderate growth with manageable risk.
Great for: long-term investors who want a bit of both worlds.: Heavier on equities (including global and emerging markets), and lighter on bonds or cash. 
Great for: investors with a higher risk tolerance and a longer time horizon.

These are just examples; your ideal portfolio depends on your goals, timeline, and how much market fluctuation you’re okay with.

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DIY investing vs managed portfolios

There are two main tracks you can go down with your portfolio:

‍DIY Investing

You pick and manage all your investments yourself.‍

Great if: you like having full control, enjoy researching markets, or want to tailor things really specifically. But it requires time, confidence, and a steady hand when markets wobble.

Managed Portfolios

You choose a risk level, and a provider (like Chip) builds and maintains a diversified portfolio for you.‍

Great if: you want a more hands-off approach, but still want exposure to the market. You’ll usually pay a small fee for this convenience, but it can be well worth it if it helps you stay invested long-term.

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What is asset allocation & why it matters?

Asset allocation is the mix of different asset classes in your portfolio – typically things like equities (stocks), bonds, cash, and sometimes alternative assets like property or commodities.

Getting the mix right is crucial. Why? Because it’s one of the biggest factors that affects your portfolio’s overall risk and return.

• More equities – higher potential returns, but also more ups and downs.
  
• More bonds – lower risk, but also lower growth.
  

Your ideal allocation depends on your goals and how long you’re planning to invest. This is not set in stone, and it can (and should) shift over time.

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How to rebalance your investment portfolio

Over time, some of your investments will grow faster than others, which means your portfolio can drift away from your original asset allocation. That’s where rebalancing comes in.

Rebalancing means adjusting your investments to bring them back in line with your target allocation.

For example, if stocks have surged and now make up 80% of your portfolio instead of your intended 60%, you might sell some and buy more bonds or cash-equivalents.

Some managed portfolios (like what’s listed on the Chip app) automatically rebalance for you. If you’re doing it yourself, you might want to set a calendar reminder every 6 or 12 months to review your allocation.

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Understanding behavioural investing & common mistakes

When it comes to investing, your emotions can be your worst enemy. Many investors panic-sell when markets fall, or chase after the latest stock or trend, only to end up buying high and selling low. 

This is known as behavioural investing, and it’s often where people slip up. The majority of investment gains are dampened by a degree of investor error, and generally the less decisions you can make, the better. 

The next guide in our series will dive into this in some more detail. 

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What is an ISA?‍

ISA stands for Individual Savings Account, it’s a tax-efficient account, also known as a ‘tax wrapper’ for a savings or investments account. This means you don’t pay tax on any returns you earn on money held in an ISA. They present a hugely popular way to save and invest in the UK.

There are four kinds of ISAs (more on this later) available and at Chip we offer access to a Cash ISA and a Stocks & Shares ISA - where you pay no tax on your savings interest or UK income or capital gains on returns (or profit) from your investments.

As of April 2024, you can open multiple of the same type of ISA in the same tax year, as long as you stay within your £20,000 ISA allowance.

You can read more about ISAs on the official UK Government website here.

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Who can open an ISA? 

To open an ISA you need to meet the following criteria 

• You’re over 18
• You’re a UK tax resident
• You aren’t a US citizen

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How do ISAs work?

ISAs function in much the same way as a regular bank or savings accounts with the key difference being you can only put a limited amount of money into an ISA every tax year, this is known as your annual ISA allowance.

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What’s my ISA allowance?

All UK residents over 18 currently have an annual ISA allowance of £20,000 per tax year. The tax year runs from 6 April to 5 April the following year. Any unused allowance doesn't roll over into the following tax year. 

For example, if you don’t use your full £20,000 this year (2024/25), and only put in £15,000, you can’t carry the remaining £5,000 over to the next tax year and invest £25,000 into an ISA.

As of the new tax year (2024/25) paying into multiple of the same type of ISA in a single tax year is now allowed.

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What are the benefits of an ISA?‍

• The main benefit of an ISA is that any returns you earn are tax-free. This means you don't need to pay any income tax, capital gains tax, or dividend tax on returns or interest you earn.
• Some ISAs (including Cash ISAs and Stocks & Shares ISAs) can be flexible, meaning you can withdraw and replace cash in the same tax year without it affecting your annual allowance. Not all providers offer this service however, so it’s best to check. Chip’s Stocks & Shares ISA is flexible. 
• You’ll often see the figure of £20,000 in relation to ISAs but this is just the maximum amount you can pay in. You don’t need to have this much available to get started and you can start seeing the benefits of an ISA from as little as £1. 
• You can transfer your ISAs from one provider to another at any time and even transfer between different types of ISAs. If you want to transfer to your Chip ISA from a provider outside of Chip, you must transfer all of it. Unfortunately, we are unable to offer partial transfers at this time.

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What types of ISA are there?

There are 4 types of ISA available in the UK. These are Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs.

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How many ISAs can I have?

You can hold as many of them as you like but note that your £20,000 ISA allowance covers all of them (not £20,000 per ISA) in a single tax year.

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Which ISA might be right for you?

The type of ISA you want depends on your circumstances. A cash ISA may suit you best if you’re looking for easy access to your money and you think you might go over your personal savings allowance in a tax year.

However, it is worth considering that easy-access savings accounts without an ISA wrapper typically offer better interest rates.

If you’re taking a longer term view and are prepared to take on some risk, you can seek potentially higher returns with a Stocks and Shares ISA or an Innovative Finance ISA.

If you’re looking towards buying your first home or retirement then a Lifetime ISA could be the right fit.