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ETFs, Investments

BetaShares ETF provides access to UK market

Betashares UK exchange traded fund

Australian investors will have access to large corporations listed on the London Stock Exchange via an exchange-traded fund launched by BetaShares today.

BetaShares has added to its exchange-traded fund (ETF) product suite with the launch of an offering that provides Australian investors with access to the United Kingdom equities market.

The BetaShares FTSE 100 ETF (Australian Securities Exchange (ASX) code F100) will use an underlying portfolio consisting of the top 100 companies listed on the London Stock Exchange based on market capitalisation.

“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 chief executive Alex Vynokur said.

The underlying portfolio will include companies with worldwide recognition, including organisations such as HSBC, GlaxoSmithKline, Johnnie Walker, Guinness and Royal Dutch Shell.

From a sector-specific perspective, the ETF is likely to give Australian investors more exposure to consumer staples and energy. According to BetaShares, this will assist with better overall portfolio diversification as the FTSE 100 ETF will have much lower exposure to ASX staples such as financial stocks, materials and property.

The ETF provider noted the offering could also be attractive to investors searching for income, considering the FTSE 100 has generated annual dividend yields of 4.8 per cent, which is comparable to those enjoyed by the ASX. This is higher than the MSCI World Index, which has recently produced annual dividend income of 2.5 per cent.

“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,” Vynokur said.

The launch of the ETF comes after BetaShares released an Australian government bond ETF into the market last week.

The firm now offers 54 ETFs covering a range of asset classes, including cash and fixed income, Australian equities, international equities and currencies, and strategies such as managed risk and shorting.

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