ETF in Focus

General discussion
1

HSBC MSCI World

Stockmarket ticker: HMWO
Sector: Global equities
Total expense ratio: 0.15% p.a.

What does it invest in?
HSBC MSCI World ETF invests in the shares of more than 1,400 companies from a wide range of developed countries, with the aim of tracking the performance of the MSCI World index. Among its biggest holdings are US tech giants such as Apple, Amazon and Tesla.

Why would you consider it for your portfolio?
It’s a low-cost way to get exposure to developed stock markets globally via the widely-followed MSCI World index. About two-thirds of the ETF is in US shares and most of its biggest holdings are US companies. Information Technology is the most widely held business sector. HSBC MSCI World is a very large ETF with a track record of more than 10 years.

Does it pay an income?
HSBC MSCI World distributes income quarterly and has a dividend yield of 1.34%.

How has it performed?
The ETF is up 48.4% over the past 5 years in £ terms with dividends reinvested (As at 20/06/22 Bloomberg ). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in HSBC MSCI World ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your portfolio?

3 Likes
2

Yes, though the performances have not been so exciting so far due to this general bearish situation.

1 Like
3

iShares UK Dividend

Stockmarket ticker: IUKD
Sector: UK equities
Total expense ratio: 0.4% p.a.

What does it invest in?
iShares UK Dividend ETF invests in the shares of 50 UK companies that pay high dividends, and aims to track the performance of the FTSE UK Dividend+ index. The ETF’s biggest holdings include tobacco firms Imperial Brands and British American Tobacco (BAT), as well as Vodafone, Legal & General and BP. Overall, the biggest sector weighting in the ETF is financial companies, particularly insurers and investment managers.

Why would you consider it for your portfolio?
It offers a high income yield (6.4% a year*) along with the potential for capital growth from a portfolio of UK companies, many of them big, well-known names. iShares UK Dividend is a substantial ETF with a track record of more than 15 years.

How often does it pay out income?
iShares UK Dividend distributes its income quarterly.

How has it performed?
The ETF is up 5.6% over the past 5 years including dividends.

You can invest in iShares UK Dividend ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it?

*As at 1/8/22, Bloomberg data

When investing your capital is at risk. Please note, past performance is not necessarily a reliable indicator of future performance.

2 Likes
4

Xtrackers Global Inflation‑Linked Bond ETF

Stockmarket ticker: XGIU
Sector: Government bonds
Total expense ratio: 0.2% p.a.

What does it invest in?
Xtrackers Global Inflation‑Linked Bond ETF invests in inflation-linked bonds issued by governments of developed markets, including the US, UK, France and others.

The ETF has more than 150 bond holdings and its biggest weighting is in US government ‘Tips’ (Treasury Inflation Protected Securities).

Why would you consider it for your portfolio?
Inflation-linked bonds are designed to provide protection against rising inflation, with their value changing in line with the consumer price index. However, they generally have low income yields and bond prices can be hit hard by rising interest rates. Many inflation-linked bond ETFs, including this Xtrackers’ fund, lost money in the first half of 2022.

Even so, bond ETFs like Xtrackers Global Inflation-Linked Bond could be worth considering as a way of spreading risk in a portfolio of equity ETFs.

Does it pay out income?
No, as an accumulating ETF, Xtrackers Global Inflation‑Linked Bond automatically reinvests the interest income it earns from its portfolio holdings.

How has it performed?
The ETF is up 14.3% over the past 5 years including all income (as at 9/8/22, Bloomberg data). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in Xtrackers Global Inflation-LInked Bond ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it?

When investing your capital is at risk.

1 Like
5

iShares Physical Gold ETF

Stockmarket ticker: SGLN
Sector: Commodities
Total expense ratio: 0.12% p.a.

What does it invest in?
iShares Physical Gold invests in gold bullion which is physically stored. This ETF tracks the daily price of gold in GBP.

Why would you consider it for your portfolio?
Gold has been a popular safe haven investment in times of economic instability and as a possible hedge against inflation.

It is important to note that this ETF is not trading gold futures instead it is an investment in the metal physically. This makes it more suitable as a long-term investment vehicle.

Does it pay out income?
No, as an accumulating ETF and the nature of the investment does not permit dividends to be issued.

How has it performed?
The ETF is up 48.2% over the past 5 years including all income (as of 31/07/22, Bloomberg data). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in iShares Physical Gold ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it?

When investing your capital is at risk.

1 Like
6

L&G Artificial Intelligence

Stockmarket ticker: AIAG
Sector: Technology/Thematic
Total expense ratio: 0.49% a year

What does it invest in?
L&G Artificial Intelligence ETF invests in shares of companies involved in artificial intelligence (AI) technology. The ETF aims to track the performance of the ROBO Global Artificial Intelligence index, a global total-return index.

More than three-quarters of the ETF’s portfolio is in US companies, with the biggest holdings including Amazon, Etsy and Microsoft, as well as more specialist businesses such as Veractye and Arista Networks.

Why would you consider it for your portfolio?
The fast-developing field of AI offers investors the potential for high growth. AI is considered an investment ‘megatrend’ that will radically transform the way people live and work.

However, as a specialist sector-focussed ETF, L&G Artificial Intelligence is a higher risk investment, and investors may want to hold it as part of a more diversified portfolio.

Does it pay an income?
No, as an accumulating ETF, L&G Artificial Intelligence automatically reinvests the interest income it earns from the companies in its portfolio.

How has it performed?
The ETF is up 42.5% since launch in July 2019 in £ terms (returns as at 22/8/22, Bloomberg data). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in L&G Artificial Intelligence ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it? Leave a comment below.

When investing your capital is at risk.

1 Like
7

Vanguard FTSE Developed World

Stockmarket ticker: VHVG
Sector: Global equities
Total expense ratio: 0.12% a year

What does it invest in?
Vanguard FTSE Developed World ETF invests in the shares of more than 2,000 large and medium-sized companies that trade on stock markets of developed economies. It aims to track the performance of the FTSE Developed World index.

About two-thirds of the ETF is invested in the US, and a fifth of its assets are in technology companies. The ETF’s biggest holdings include Apple, Microsoft, Google-owner Alphabet, Amazon and Tesla.

Why would you consider it for your portfolio?
It’s a low-cost way to get exposure to a wide range of companies on developed stock markets around the world.

At £600m of assets, this is a large ETF from one of the best-known index fund managers.

Does it pay an income?
No, as an accumulating ETF, Vanguard FTSE Developed World automatically reinvests the dividends it receives from its portfolio companies.

How has it performed?
The ETF is up 36.4% since launch in September 2019 in £ terms (returns as at 30/8/22, Bloomberg data). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in Vanguard FTSE Developed World via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it? Leave a comment below

When investing your capital is at risk.

1 Like
8

iShares Core FTSE 100

Stockmarket ticker: CUKX
Sector: UK equities
Total expense ratio: 0.07% a year

What does it invest in?
iShares Core FTSE 100 ETF invests in the shares of the 100 biggest companies on the UK stock market, including well-known names such as AstraZeneca, Shell and HSBC. It aims to track the performance of the FTSE 100 index, the most widely quoted benchmark for UK shares.

The ETF’s biggest sector weights are ‘consumer staples’ companies — consumer businesses that are considered less sensitive to the economic cycle, such as Unilever, Tesco and British American Tobacco — and financials such as Lloyds Banking Group and Prudential.

Why would you consider it for your portfolio?
iShares Core FTSE 100 is a low-cost way to invest in the UK stockmarket’s biggest companies, including many international businesses whose prospects are less dependent on the fortunes of the UK economy.

This is a very large and well-established ETF from iShares, the world’s biggest ETF manager.

Does it pay an income?
No, iShares Core FTSE 100 (ticker CUKX) is an accumulating ETF which automatically reinvests the dividends it receives from its portfolio companies.

However, for investors who want income, the ETF is also available in distributing form (ticker ISF) with a current annual yield of 3.7% (Bloomberg data). ISF pays out quarterly.

How has it performed?
The ETF is up 19.3% over 5 years including dividends (returns as at 5 Sept 2022, Bloomberg data). Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in iShares Core FTSE 100 via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it? Leave a comment below

When investing, your capital is at risk

1 Like
9

Invesco S&P 500 High Dividend Low Volatility

Stockmarket ticker: HDLG
Sector: US equities
Total expense ratio: 0.3% a year

What does it invest in?
Invesco S&P 500 High Dividend Low Volatility ETF invests in large US companies in the S&P 500 index that have high dividend yields and steadier share prices.

Its biggest sector weights are to utilities, real estate and consumer staples, with more than half the fund in these relatively defensive businesses.

Among the ETF’s top 10 holdings are telecoms giant AT&T and Philip Morris, maker of Marlboro cigarettes.

Why would you consider it for your portfolio?
Invesco S&P 500 High Dividend Low Volatility ETF (HDLG) combines a decent income and exposure to the US stock market, with minimal investment in the volatile tech sector.

In what has been a disappointing year so far for US shares generally, the ETF has performed better than the full S&P 500 index as well as the tech-focussed Nasdaq.

Invesco S&P 500 High Dividend Low Volatility is a low-cost ETF with £400m of assets that has been operating for more than seven years.

Does it pay an income?
It yields 3.4% a year and distributes income quarterly.

How has it performed?
The ETF is up 50.4% over 5 years including dividends, which compares to 97.8% for the full S&P 500 index (returns as at 22 Sept 2022, Bloomberg data).

Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in Invesco S&P 500 High Dividend Low Volatility ETF via InvestEngine’s commission-free DIY platform

Has this ETF made an appearance in your investment portfolio? If so, are you happy with it? Leave a comment below

When investing your capital is at risk.

2 Likes
10

iShares Physical Silver

Stockmarket ticker: SSLN
Sector: Alternatives/Commodities
Total expense ratio: 0.20% a year

What does it invest in?
iShares Physical Silver ETC invests in silver bullion by buying physical bars of the precious metal. It aims to track the current (‘spot’) price of silver.

Why would you consider it for your portfolio?
Like gold, silver has traditionally been seen as a safe haven in times of turmoil and a hedge against inflation.

Also like gold, it tends to have a low correlation to the performance of equities and bonds, making it a potentially useful diversifier for a conventional portfolio.

That said, the silver price has fallen heavily since the spring in the face of rising interest rates and other economic headwinds.

ETCs (commodity-based ETFs) are one of the easiest ways to invest directly in precious metals such as silver — other types of funds tend to invest in shares of precious metal miners.

iShares Physical Silver ETC (SSLN) is low cost, has been operating for more than a decade, and has £350m of assets.

Does it pay an income?
No, there’s no income from physically investing in a metal such as silver.

How has it performed?
The ETC is up 35.3% over 5 years (returns as at 30 Sept 2022, Bloomberg data).

Please note, past performance is not necessarily a reliable indicator of future performance.

You can invest in iShares Physical Silver ETC via InvestEngine’s commission-free DIY platform

Has this ETF/ETC made an appearance in your investment portfolio? If so, are you happy with it? Leave a comment below

11

Is this ETA (also iShares Physical Gold etc) covered by FSCS if BlackRock can’t pay out / go bust? In the Key Information Document (extract below) it indicates it is NOT covered. Can you clarify please. Thank you

What happens if iShares Physical Metals plc is unable to pay out?
The underlying precious metal of the ETC is held in safekeeping by the Company’s Custodian, JPMorgan Chase Bank N.A. London Branch, and/or sub-custodians
(appointed by the Custodian). In the event of the insolvency of the Arranger or Trustee, the ETC’s underlying metal in the safekeeping of the Custodian and/or subcustodians will not be affected. In the event of the insolvency of the Custodian or any sub-custodian, the allocated metal held by the Custodian or any subcustodian in an “Allocated Account” (which is a segregated account in which metal is held in allocated form) for the benefit of the Company for the ETC should be
protected as such metal should be identified separately from the assets of the Custodian, any sub-custodian and their other clients. Compensation will not be available under the UK Financial Services Compensation Scheme or any other scheme in the event of insolvency of the Company, Custodian, sub-custodians, Arranger and/or Trustee

12

iShares MSCI World ESG Enhanced

Stockmarket ticker: EEWG
Sectors: Industrial/Technology/Financial
Total expense ratio: 0.20% a year

What does it invest in?
iShares MSCI World ESG Enhanced ETF invests in shares of over 1,000 large and medium-sized companies with a heavy weighting of North American companies (over 70%).

As an ESG fund, the companies in the basket are screened based on environmental, social and governance criteria - this means you won’t be investing in businesses involved in industries like tobacco or firearms.

Once these are screened out, weighting is then given preferentially to those with higher ratings in areas like carbon emissions and community engagement. Naturally, this can be something of a balancing act when looking for returns.

The ETF’s biggest holdings include Apple, Microsoft, Google-owner Alphabet, Amazon and Tesla.

Why would you consider it for your portfolio?
It’s a low-cost way to get exposure to a wide range of socially responsible companies on developed stock markets around the world.

It’s towards the higher end of the risk profile for ETFs, so would suit those with a more medium-to-long term approach to investing. It also has no entry or exit fees.

For a lot of people, socially responsible investments are more aligned with their principles and the ability to invest in a basket of companies that have high ESG ratings is a bonus.

Does it pay an income?
iShares MSCI World ESG Enhanced pays income on its shares semi-annually.

You can invest in Vanguard FTSE Developed World via InvestEngine’s commission-free DIY platform.

Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing your capital is at risk.

13

SparkChange Physical Carbon EUA ETC

Stock market ticker: CO2 LN
Sectors: Carbon
Total expense ratio: 0.89%

What does it invest in?
This week’s highlight isn’t an ETF, rather it’s an ETC or exchange-traded commodity. This means that instead of holding a basket of stocks, it invests directly into physical European Union carbon Allowances (EUAs). Each security was backed by one EUA at launch.

Each EUA entitles the holding company to pollute 1 tonne of CO2. The EU Commission issues progressively fewer and fewer each year to limit carbon pollution, potentially creating upward price pressure on the commodity thanks to scarcity. The price of the ETC is therefore, physically tied to the price of the EUAs.

Why would you consider it for your portfolio?
Because the ETC is physically backed by EUAs, it means these held within the ETC cannot be used by polluters. So, quite apart from the potential price rises of the commodity, the holder can know that they’re having a direct positive environmental impact by holding an EUA in place of a polluter.

Also, under EU law, holding EUAs for a year or more triggers additional permits being cancelled in future years, meaning holders are actively contributing to the scarcity of the polluting allowances. This should, in turn, lead polluters to assess alternative energy proposals as EUAs (in theory) become prohibitively expensive.

Does it pay an income?
This ETC does not pay an income.

You can invest in SparkChange Physical Carbon EUA ETC via InvestEngine’s commission-free DIY platform.

Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing, your capital is at risk.

14

iShares S&P 500 Hedged

Stockmarket ticker: IGUS
Sectors: Industrial/Technology/Financial
Total expense ratio: 0.20% a year

What does it invest in?
iShares S&P 500 Hedged invests in shares of 500 of the largest companies listed in the United States. As a result, it’s an index that’s almost exclusively weighted to the US (over 94%).

This particular ETF has the added element of being hedged, meaning that the assets are denominated in GBP, meaning that the holding is unaffected by currency fluctuations.

The ETF’s biggest holdings include Apple, Microsoft, Google-owner Alphabet, Amazon and Tesla.

Why would you consider it for your portfolio?
The primary reason people invest in the S&P 500 is the strength of the US companies it is consisted of. An S&P 500 ETF is a great way to gain exposure to all 500 companies and diversify across sectors.

The fact that this ETF is hedged means that investors don’t take on the currency risk ordinarily associated with investing in US securities. This means that, if the pound strengthens against the dollar, you don’t lose out.

Does it pay an income?
iShares S&P 500 Hedged does not pay an income - the shares will accumulate.

You can invest in the S&P 500 Hedged via InvestEngine’s commission-free DIY platform.

Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing your capital is at risk.

1 Like
15

1200x628
1200x6281920×1005 91.3 KB

WisdomTree Artificial Intelligence ETF

Stockmarket ticker: INTL
Sectors: Technology
Total expense ratio: 0.40% a year

What does it invest in?
The WisdomTree Artificial Intelligence UCITS ETF aims to track the performance of the NASDAQ CTA Artificial Intelligence Index, which provides exposure to global companies that are capitalising on the growth of AI technology. The index uses a rules-based methodology to select companies that are enhancing, enabling, or engaging with AI.

This ETF offers focused exposure to businesses involved in AI technology, including companies that develop and provide AI solutions and services. The ETF holds physical assets and is compliant with the UCITS (Undertakings for Collective Investment in Transferable Securities) directive.

Why would you consider it for your portfolio?
Artificial intelligence is a rapidly growing industry with the potential to transform many aspects of our lives. The WisdomTree Artificial Intelligence ETF offers investors a way to gain exposure to this exciting sector through a portfolio of companies that are at the forefront of AI development and implementation.

Additionally, the ETF applies ESG criteria to its selection of companies, ensuring that investors are investing in companies that meet certain environmental, social, and governance standards.

Does it pay an income?
The WisdomTree Artificial Intelligence ETF does not pay an income, with any earnings being reinvested.

You can invest in the WisdomTree Artificial Intelligence ETF via InvestEngine’s commission-free DIY platform.

Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing, your capital is at risk.

1 Like
16

1200x628
1200x6282400×1256 246 KB

Lyxor UK Government Bond 0-5 Year ETF

Stockmarket ticker: GIL5
Sectors: Fixed Income
Total expense ratio: 0.05% a year

What does it invest in?
The Lyxor UK Government Bond 0-5 Year ETF aims to track the performance of the FTSE Actuaries Govt Securities UK Gilts TR 0-5 Year Index. This index represents the performance of fixed income securities issued by the UK government, known as gilts. The ETF holds physical assets, specifically gilts, providing investors with exposure to the UK government bond market.

Why would you consider it for your portfolio?
Investing in UK government bonds can be an attractive option for investors seeking stability and income. The Lyxor UK Government Bond 0-5 Year ETF offers a way to access the UK gilt market with the convenience and diversification benefits of an ETF. Government bonds are generally considered less risky than other types of fixed income securities due to the backing of the UK government.

Additionally, gilts can act as a potential diversifier within a portfolio, as they tend to have a low correlation with other asset classes such as equities. This can help to reduce overall portfolio risk.

Does it pay an income?
Yes, the Lyxor UK Government Bond 0-5 Year ETF pays income in the form of periodic interest payments from the gilts held within the portfolio. Investors can expect to receive income from the coupon payments associated with the underlying UK government bonds.

You can invest in the Lyxor UK Government Bond 0-5 Year ETF via InvestEngine’s commission-free DIY platform.

Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing, your capital is at risk.