SSGA introduces distributing share class for SPDR FTSE UK All Share ETF

May 1st, 2018 | By | Category: Equities

State Street Global Advisors has introduced a distributing share class for the SPDR FTSE UK All Share UCITS ETF.

UK equities London FTSE

The FTSE All-Share Index covers approximately 98% of the market capitalization of the UK equities market.

The new share class is available on Deutsche Börse Xetra under the ticker ZPRD GY and on London Stock Exchange under FTAD LN. Both new lines trade in pound sterling.

The SPDR FTSE UK All Share UCITS ETF tracks the FTSE All-Share Index, providing broad-market access to the UK stock market.

The index comprises stocks listed on the London Stock Exchange that are part of the FTSE 100, FTSE 250 and FTSE Small Cap investment universes. The index accounts for around 98% of the market capitalisation of the UK market.

Constituents are weighted by market cap, and the fund tracks the index through physical replication using an optimization process.

As of the end of March 2018, the index contained 638 constituents. Financials dominate the sector weightings with over a quarter (27.1%) of the total exposure, followed by consumer goods (14.8%), oil & gas (12.8%), consumer services (11.3%) and industrials (10.8%).

The top ten constituents account for just over a third (34.8%) of the total index weight. The largest of these are HSBC (5.9%), Royal Dutch Shell (4.5%), British American Tobacco (4.1%), and BP (4.1%).

The new distributing share class pays out income generated within the fund’s portfolio. The index is currently showing a dividend yield of 3.9%.

Over the past five years, the index has returned 6.6% per annum, having been boosted by strong performance from UK mid-caps with the FTSE 250 gaining 9.8% per annum over this period. However, the UK large-cap sector, as represented by the FTSE 100, is the main driver of the FTSE All-Share Index’s return (as a proportion of total index weight). This blue-chip component has risen 5.8% per annum over the past five years.

The fund, originally launched in February 2012, has approximately £470 million in assets under management.

As with the pre-existing accumulating share class, the distributing share class has a total expense ratio (TER) of 0.20%.

Deutsche Asset Management and Lyxor also provide ETFs tracking the FTSE All-Share Index. The Xtrackers FTSE All-Share UCITS ETF (XASX LN) has £70m in AUM and also has a TER of 0.20%. The Lyxor FTSE All Share UCITS ETF (LFAS LN) has just £8m in AUM and is double the price of the other two with a TER of 0.40%.

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