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Nov 4, 2023 · The FTSE 100 is a slow-moving index, and is considered one of the most stable indices. One of the key reasons for this is because the FTSE 100 has minimal technology exposure, as the UK is not as big an exporter of technology as other nations such as the US.
Mar 5, 2024 · The top-quartile UK funds that weren’t afraid to stray from their benchmarks. 05 March 2024. Trustnet reveals which UK funds delivered the best returns while diverging significantly from the FTSE...
Apr 23, 2021 · An ETF usually trails its benchmark index, but can be in positive territory if it outperforms its index as a result of revenue from stock lending, for example. It is important to look at...
- Fees and Charges
- Transaction Costs
- Cash Drag
- Stock Lending
The fee an ETF charges is usually expressed as either its ‘ongoing charge’ or the ‘total expense ratio’ and can be found on the ETF’s factsheet. The fee the investor pays will create a difference between the return the investor receives and the return the underlying index suggests they would receive. Usually, these numbers are rather small, as ETFs...
Another reason for tracking difference is the cost of rebalancing the portfolio. Indices are often rebalanced at set intervals. The FTSE 100, for example, is rebalanced every quarter. Companies that have fallen in market capitalisation value are removed from the index, while companies that have grown large enough are added. The index can also chang...
ETFs sometimes have uninvested cash in a portfolio. This is usually because of dividends. If stocks in the portfolio pay dividends, ETFs don’t automatically hand those over to investors. Instead, these dividends are paid out at periodic intervals, such as every quarter. The time between these dividends being paid and being distributed to investors ...
One way ETF providers generate income is by lending out the stocks in their portfolio. Stocks are usually lent to brokers or other market participants to be used for ‘going short’. Shorting a stock entails lending a stock and selling it, in anticipation of the stock price falling and buying it back at a lower price and returning it to whoever it wa...
Aug 5, 2021 · The difference between two popular FTSE 100 ETFs What sets apart these products from iShares and Vanguard? 05 August 2021 | Exchange-Traded Funds | by Tom Sieber
- Editor
In this article, we explore the top contenders for the title of the best FTSE 100 ETF. We analyze their performance, expense ratios, diversification, and other key factors to help investors make an informed decision when choosing an exchange-traded fund to track the UK's leading stock market index.
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Sep 25, 2023 · Explore top FTSE 100 ETF options from iShares, Vanguard and HSBC. Understand the impact of home bias on UK investors. Compare costs and performance metrics. Learn about dividend yields and the difference between accumulation and distributing ETFs.
