Since their introduction in 1993, ETFs have become very popular, mainly because the product offers:
Diversification: One ETF can mimic the returns of an index, market segment(s) or investment style(s).
Lower fees: ETFs, which are passively managed, have much lower costs compared to actively managed funds.ETFs have the trading behaviour and liquidity of stocks on the market, allowing for easy buying and selling.
ETFs have the trading behaviour and liquidity of stocks on the market, allowing for easy buying and selling.
The most traded ETFs
The four most traded ETFs by our clients during 2020 are either from Vanguard or iShares and are either invested in global stocks or the S&P 500.
1. Vanguard FTSE All-World
[ISIN: IE00B3RBWM25]
This ETF seeks to track the performance of the FTSE All-World Index. This is a market-capitalisation weighted index of stocks of global large and mid-cap companies in developed and emerging countries. Details about this ETF here.
This ETF seeks to track the performance of the FTSE All-World Index. This is a market-capitalisation weighted index of stocks of global large and mid-cap companies in developed and emerging countries.
Issuer cost (integrated in ETF price):
0.22% per year
2. Vanguard S&P 500
[ISIN: IE00B3XXRP09]
This Vanguard tracker seeks to track the performance of the Standard & Poor's 500 ('S&P 500') Index, a widely recognised benchmark of US stock market performance that is comprised of the stocks of 500 large US companies.
Issuer cost (integrated in ETF price):
0.07% per year
3. iShares MSCI World
[ISIN: IE00B4L5Y983]
The investment objective of this tracker is to provide investors with a total return which reflects the return of the MSCI World Index. Just like the FTSE AW Index, which we see on number 1 in our list, this is a market-capitalisation weighted index of stocks of global large and mid-cap companies in developed and emerging countries.
Issuer cost (integrated in ETF price):
0.20% per year
4. iShares S&P 500
[ISIN: IE0031442068]
Same as number 2 on this list, this tracker also aims to reflect the return of the S&P 500.
Issuer cost (integrated in ETF price):
0.07% per year
Rather invest in local or European stocks?
If you prefer to keep your investments more local or European, then you can choose a tracker that follows the FTSE 100 or EURO STOXX. The below are not the only ETFs which follow European or local indices, but we’ve selected two as examples.
iShares EURO STOXX 50
[ISIN: IE0008471009]
This tracker aims to reflect the return of the EURO STOXX 50 Index. The benchmark index measures the performance of the 50 largest companies in the Eurozone. Details about this ETF here.
This tracker aims to reflect the return of the EURO STOXX 50 Index. The benchmark index measures the performance of the 50 largest companies in the Eurozone.
Issuer cost (integrated in ETF price):
0.10% per year
iShares FTSE 100
[ISIN: IE0005042456]
This tracker follows the FTSE 100 index, probably an index that is familiar to you. The benchmark index follows the 100 largest UK companies trading on the London Stock Exchange.
Issuer cost (integrated in ETF price):
0.07% per year
The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written.
Deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.
