Frequently Asked Questions
How has ETF Select 100 been calculated?
Why are there so many FTSE 100 ETFs?
The FTSE 100 index is one of the principal stock market indices in the UK and is widely watched and tracked by many investors. Most of the principal ETF issuers offer a FTSE 100 tracking ETF and they all meet our selection criteria which include low cost and high liquidity.
The ETF Select 100 also features a FTSE 250 and a FTSE All Share tracker ETF.
Why is there is no Income option?
Just like mutual funds, ETFs either reinvest any income or dividends and are known as accumulation ETFs or they distribute these dividends or interest income and are known as income ETFs. Some ETFs are offered in both forms and where both are in the ETF Select 100 we denote income or accumulation in the name.
Why is there such a limited geographical selection?
The ETF Select 100 features ETFs covering all the principal regions in the world. There is currently one ETF covering the Italian stock market which meets our selection criteria. As other country specific ETFs, such as France or Germany, meet all our selection criteria then they will be added to our geography options.
How will I know if the ETFs in the ETF Select 100 today no longer meet your criteria?
Every month the ETF Select 100 is reviewed and any ETFs entering or leaving the list are detailed in the news section on the ETF Centre.
How frequently is the performance updated?
The performance of all ETFs in the ETF Select 100 is updated daily. The performance shown is compiled based on all dividends or income being reinvested and is also adjusted for any corporate actions.
Why can’t I compare the performance of ETFs in the ETF Select 100 and add other assets or indexes to compare?
We are always looking to increase the functionality of the ETF Centre and respond to customer requests. Such comparison tools will be added in future upcoming releases.
What are ETFs and their benefits to me?
Who are ETF experts ITI?
How do I use the ETF Select 100 filtering tool?
Why do some of the ETFs show a negative return?
There is no certainty that an ETF will deliver a positive return, particularly in the short term. ETFs track an index and over the last five years, stock and fixed income indices have generally done well while commodities and gold have returned more mixed results and some have shown a negative performance. Commodities tend to be quite cyclical, following the economic business cycle and sometimes even anticipating it. Gold is often considered to be a safe haven asset, which appreciates when investor uncertainty or concern increases.
Why do some of the ETFs show no returns?
If you see no return information, that is because the ETF has not been in existence over the time period selected. If you are looking at 5 year returns, try switching to a 3 year time period or even a 1 year period and the performance will be returned.
What are physical vs. synthetic ETFs?
When an ETF is termed physical or synthetic, these terms refer to the way the issuing company has chosen to track the index it is following. A physical ETF means that the issuing company is buying and holding the stocks and bonds or commodities covered by the index it is tracking. An ETF is termed synthetic when the issuing company has entered into a contract with several investment banks to deliver to the ETF holders the return of the index covered.
What is a ‘Reinvested Price’?
The calculation of a reinvested price is determined by taking the change in price and reinvesting, if applicable, all income and capital gains during the period.