BetaShares has established what it calls the first UK-focused ETF on the ASX, tracking Britain’s sharemarket benchmark, the FTSE 100.
The BetaShares FTSE 100 ETF (ASX:F100) aims to provide access to a portfolio of the 100 largest companies by market capitalisation listed on the London Stock Exchange.
The FTSE 100 includes giants such as HSBC, energy company Royal Dutch Shell, pharmaceutical company GlaxoSmithKline and global beverage brand Diageo, owner of Johnnie Walker and Guinness.
On the launch, BetaShares chief executive Alex Vynokur commented: “For Australian investors, F100 offers an attractive source of diversification, providing access to a widely recognised benchmark of 100 blue-chip companies listed in the UK.”
Betashares added that compared to the Australian sharemarket, the UK tends to have a higher exposure to consumer staples and energy sectors, along with lower exposure to financials, materials and the property sectors. The US market on the other hand has more exposure to the technology sector.
The FTSE 100 has seen relatively high-income returns by global standards according to BetaShares, with its dividend yield consistently above the MSCI World Index and currently at similar levels to the Australian sharemarket.
It has seen annualised yields of 4.8 per cent versus 2.5 per cent for the MSCI World Index and 4.6 per cent with the Australian market as at the end of June.
“We’re excited to be continuing to broaden the investment solutions available – F100 brings 100 leading companies to Australian investors, in a single trade on the ASX,” Mr Vynokur said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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