About ETF Select 100
Why choose ETF Select 100?
There are around 1,500 ETFs listed on the UK Stock Exchange, and this will continue to grow with their increasing popularity. We’ve heard from our customers that they struggle to understand and research ETFs. We wanted to help and that’s why we have, in partnership with ETF experts ITI, launched our list of some of the best-in-class ETFs available in the UK market today.
ETF Select 100 will save you time researching which ETF to buy, provide a better understanding of what the ETF aims to track by simplifying naming conventions, and will give you the security of knowing that these have been researched and validated against carefully selected criteria by an independent specialist.
Both Selftrade and ETF investment experts ITI, are passionate about raising the awareness of ETFs and the value they can have on the performance of your investment pot. It is our mission to help provide you with the tools to help deliver better investment outcomes and returns.
The mathematicians at ITI have created a list of criteria that all ETFs within ETF Select 100 are measured against. These include:
- Based in GBP – the ETFs listed are on the London Stock Exchange and are all priced in GBP. It means there are no FX charges if you were to buy the listed ETF - no charges mean a potentially better return on your investment
- Low ongoing charges – low ongoing charges of not more than 0.35% per annum will go to the ETF provider. Lower charges mean a potentially better return on your investment. Please be aware that in addition Selftrade will charge a fee per ETF trade, however, we do also aim to keep our fees low and the current rate is just £9.99 per ETF trade
- History – with new ETFs entering the market, we ensure that only ETFs that have been trading for at least one year are included. This is good because some ETFs are not able to raise sufficient interest or assets after launch and so are quickly closed
- Liquidity – All ETFs in ETF Select 100 have a minimum average daily trading volume so they are actually trading each day on the exchange. This means they are more easily tradeable and are likely to have a lower bid / offer spread - the price gap between buying and selling is narrow – the smaller the gap the smaller the charge, and therefore the potential for you to get a better return on your investment
- Size – We only include ETFs that have a level of assets such that they are ranked in the top three quarters of all listed ETFs by assets under management. The higher the assets of an ETF, the more likely they are to be liquid, low cost and at lower risk of closure
ITI will complete monthly calculations, against their list of criteria, to ensure that all ETFs listed in ETF Select 100 still meet their carefully selected criteria. Check back on here monthly for updates.
The names of the ETFs in ETF Select 100 have been simplified in order to make it quicker and easier for you to understand what the ETF aims to track. This means you will be able to compare like-for-like ETFs and check their respective performances.
The Filtering Tool
The filtering tool is a great way to quickly and easily narrow down the list of ETFs and find ones that match your investment goals. For example, if you’re looking to gain exposure in a specific market, like the US, filter by ‘Geography’ and then use ‘Sort By’ to look at the performance over a one, three, or five-year period. Equally if you’re looking to gain exposure across a range of asset classes, use ‘Asset Type’ to view ETFs that are made up of stocks, bonds, commodities etc. Again select ‘Sort By’ to look at their performance over a chosen period.
The ETFs are displayed as a tile, colour coded according to their primary asset class:
- dark grey – stocks
- turquoise – bonds
- red – commodities
- green - money market
- blue - property
The tiles include a quick view of each ETF including:
- The market exposure – UK, US etc
- The asset class - stocks, bonds, commodities etc
- Our simplified naming convention, and what the ETF aims to track, for example: HSBC US S&P 500 (HSPX). HSBC – the ETF provider, US S&P 500 - the index the ETF is tracking, and (HSPX) the code of the ETF to enter when buying
- The performance of the ETF in % terms over the selected return period, i.e. a one, three, or five-year period
To find out more detail about a particular ETF simply click on ‘see full details’.
ETF Performance Detail
The performance of an ETF that we display is what is called the ‘reinvested price series’ which may not be the same as the actual price trading on the exchange. The reinvested price series calculates the performance of an ETF assuming all dividends had been reinvested in the ETF, so it provides a way of seeing the total performance of the ETF over the chosen time period.
Some ETFs distribute dividends to provide income while others do not and instead reinvest dividends or accumulate.
The reinvested price series therefore provides a way to compare like-for-like.
ITI Data Vision
ITI Data Vision (ITI) are specialist ETF investment experts. They are mathematicians, statisticians, programmers, data managers, technology and operational engineers with a long track record of successful investment management. ITI research ETFs themselves to look at ways in which they can deliver low cost, absolute and stable returns and are actively investing in ETFs every day, both in the UK and United States.
For more information about ITI, see here.