ETF in Focus

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?

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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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