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Highlights
- Exchange-traded funds (ETFs) are a basket of securities that can be traded on an exchange.
- They merge the benefits associated with the ease of stock trading with the diversification of mutual funds but can also carry some risks.
Exchange-traded funds (ETFs) are a basket of securities traded on an exchange. ETFs can be an interesting instrument as it allows investors to have exposure to a variety of securities through a single fund.
ETFs combine the ease of trading stock trading with diversification seen in mutual funds. Some other ETF benefits include transparency and certain tax benefits as well.
However, investors must also keep in mind that ETFs can have some minuses as well which include, potential challenges with liquidity, the possibility of an ETF closing, and trading costs, amongst others.
Thus, an investor must consider how an ETF can be beneficial to their investment portfolio before choosing to invest in them.
© 2021 Kalkine Media®
Let us take a look at the top 5 FTSE listed ETFs in 2021, having a year-to-date return of over 11 per cent:
- First Trust United Kingdom Alphadex UCITS ETF (LON:FKU)
The First Trust Global Fund’s ETF’s top 3 holdings include the UK REIT company SEGRO PLC, financial services firm Investec PLC and a real estate investment trust company, Tritax Big Box REIT PLC.
Its total expense ratio is at 0.81 per cent as of 30 November. Its net asset value (NAV) stood at £13.605 million as of 14 December.
The fund has a one-year return of 17.90 per cent and a year-to-date return of 19.90 per cent as of 31 December 2021.
- UBS ETF MSCI UK SRI A-DIS (LON:UKSR)
The UBS ETF MSCI UK has a fund size of £43 million and a total expense ratio of 0.20 per cent as of 15 December. Its NAV per share stood at 16.7771 as of 15 December.
The fund has a one-year return of 9.93 per cent and a year-to-date return of 11.43 per cent as of 31 December.
- Ishares Core FTSE 100 UCITS ETF (DIST) (LON:ISFU)
Ishares Core FTSE 100 UCITS ETF has a fund size of £9,935 million and a total expense ratio of 0.07 per cent as of 16 December. The fund’s investment strategy includes tracking the 100 biggest stocks in the UK.
The fund has a one-year return of 10.58 per cent and a year-to-date return of 11.47 per cent as of 16 December.
- Vanguard FTSE 100 UCITS ETF (LON:VUKG)
Vanguard FTSE 100 UCITS ETF has a fund size of £468 million and a total expense ratio of 0.09 per cent as of 16 December.
The fund has a physical full replication method and a long-only strategy risk. Its distribution policy is accumulating.
The fund has a one-year return of 15.99 per cent and a year-to-date return of 17.54 per cent as of 16 December.
- Vanguard FTSE 100 UCITS ETF (LON:VUKE)
Vanguard FTSE 100 UCITS has a fund size of £ 3,594 million and a total expense ratio of 0.09 per cent as of 16 December. Its policy is distribution at a quarterly frequency.
The fund has a one-year return of 11.38 per cent and a year-to-date return of 12.94 per cent as of 16 December.
