The ETF world has been gifted a brand-new product on this economy by Recon Capital lately. The trading symbol of the fund also corroborates the underlying investing objective. The issuer named it Recon Capital FTSE 100 ETF with a trading symbol of (UK – ETF report). The fund hit the market on April 29, 2015.
UK ETF in Focus
The new ETF looks to track the FTSE 100 Index, charging investors 45 basis points a year in fees for the exposure. The fund has roughly 100 biggest firms trading on the London Stock Exchange in its basket, per the issuer (see all the European ETFs here).
In terms of the portfolio, the ETF is moderately spread out among individual securities, with no company making up more than 6.74% of assets. HSBC Holdings plc HSBC (6.74%), BP plc BP (4.89%), Royal Dutch Shell Plc-A Shares RDS-A (4.60%) and Glaxosmithkline GSK (4.12%) are the top holdings of the fund (read: Can UK ETFs Continue their Uptrend?).
The fund will have a definite large cap focus with over 80% exposure. Among industries, Energy takes the top spot at about 11.9%, followed by Banks (10.5%), Personal & Home Goods (9.42%) and Industrial Goods & Services (9.21%).
How Does it Fit in a Portfolio?
Investors should also note that the FTSE 100 is the banner benchmark of the UK and well represents the real performance of the British stocks. While there are plenty of UK-based ETFs presently on offer, the new fund would be the lone U.S. listed ETF following the FTSE 100 Index, per the issuer. The fund would trade during U.S. market hours in greenback.
The UK economy expanded at the best clip (2.6%) in seven years in 2014. Even the International Monetary Fund admired the British economy’s recent strong growth rate. Jobless rate is also going downhill (read: English Day Puts UK ETFs in Focus Ahead of Election).
Moreover, the ongoing easy money policy should propel the economy. The QE measures by the ECB will also have an indirect positive impact on the UK economy as a revival in neighboring countries should strengthen British exports (read: 4 European ETFs to Buy on Cheaper Valuations, QE Launch).
The fund’s underlying index is pretty strong as FTSE 100 logged the `biggest election-year rally since Margaret Thatcher won third term in 1987’ per Bloomberg. So, investors interested to tap this opportunity, might find UK an intriguing option.
