BetaShares has announced the launch of its first UK-focused exchange traded fund (ETF) on the Australian Securities Exchange (ASX), the BetaShares FTSE 100 ETF (F100) which will track the FTSE 100 Index and will provide a portfolio of the 100 largest companies by market capitalisation listed on the London Stock Exchange.
Betashares’ chief executive, Alex Vynokur, said F100 offered an attractive source of diversification for Australian investors, which included 100 blue-chip companies listed in the UK.
Additionally, the UK market offered a relatively higher exposure, compared to the Australian stock market, to companies in the consumer staples and energy sectors and had a lower exposure to financials, materials and the property sector, he said.
Also the FTSE 100 saw high income returns by global standards, with its dividend yield consistently above the MSCI World Index and currently at similar levels to the Australian stock market, with annualised yields of 4.8 per cent versus 2.5 per cent and 4.6 per cent respectively at the end of June, 2019.
“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 concluded.