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Our investments

When you invest with Nutmeg, we construct your portfolio for you, principally using a mix of exchange traded funds — ETFs. These provide an easy way to gain exposure to a pool of investments without having to buy each one individually. They can track a share index, such as the FTSE 100, and they can give you exposure to assets like Government and corporate bonds. They can also invest in specific sectors such as precious metals or forestry which can be difficult for individual investors to access.

Our investment team chooses from a universe of over 1,800 ETFs. We consider many factors in choosing our investments and favour physically backed ETFs with high liquidity and good tracking performance. The investments in our portfolios are reviewed regularly to ensure they're the most suitable for our customers' needs.

The list below includes investments we currently use as well as those we may have used in the past.

Developed Equities

Shares in companies listed on the stock exchanges of developed markets, ranging from the United States to New Zealand.

Provider: JPMorgan

JPMorgan BetaBuilders US Small Cap Equity UCITS ETF

Benchmark

Morningstar US Small Cap Target Market Exposure Index

Description

This ETF aims to track the performance of the Morningstar US Small Cap Target Market Exposure Index, providing diversified exposure to smaller US companies.

Investment team comments

This ETF aims to track the performance of the Morningstar US Small Cap Target Market Exposure Index, providing diversified exposure to companies in the 86th-95th percentile of the US stock market by market capitalisation. The Morningstar index aims to invest only in the 75% most liquid stocks in the US Stock market.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.14%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI EMU Small Cap UCITS ETF

Benchmark

MSCI EMU SmallCap Net Total Return

Description

The ETF aims to track the performance of the MSCI EMU Small Cap Index, comprised of smaller capitalisation companies from developed markets within the Eurozone.

Investment team comments

This ETF provides access to small cap Eurozone equities. For investors with less concern for short term volatility, exposure to smaller companies can provide the opportunity for higher long term returns.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe ex UK

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.58%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Optimised

Provider: iShares

iShares Core MSCI EMU UCITS ETF

Benchmark

MSCI EMU Index

Description

This ETF aims to track the performance of the MSCI EMU Index. It provides exposure to over 230 companies in the 11 countries of the Eurozone with the largest holdings in France, Germany and Spain.

Investment team comments

This ETF enables us to invest across the broad range of companies in the Eurozone.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.12%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI EMU UCITS ETF

Benchmark

MSCI EMU Net Return GBP hedged

Description

This ETF aims to track the performance of the MSCI EMU Index, independent of movements in the pound/euro exchange rate (currency hedged). It provides exposure to the 11 countries of the Eurozone with the largest holdings in France, Germany and Spain.

Investment team comments

This ETF enables us to invest across the broad range of companies in the Eurozone, while eliminating euro currency risk.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.12%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares Nasdaq 100 UCITS ETF

Benchmark

NASDAQ-100 Notional Net Total Return

Description

This ETF aims to track the performance of the Nasdaq-100 Notional Net Total Return Index. It provides exposure to the largest domestic and international non-financial companies listed on the NASDAQ Stock Market based on market capitalisation.

Investment team comments

This ETF enables diversified exposure to US equities with a particular focus on the technology sector and high growth companies. This ETF provides an efficient and diverse way to invest in high growth industries and companies, covering major sub-industry groups including computer hardware, software, telecommunications and retail.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.33%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Amundi

Amundi MSCI Pacific ex Japan SRI PAB UCITS ETF

Benchmark

MSCI Pacific ex Japan SRI Filtered PAB

Description

This ETF aims to track the performance of the MSCI Pacific ex Japan SRI Filtered PAB Index.

Investment team comments

This ETF enables us to gain exposure to companies in the Pacific region with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Asian Pacific Region ex Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares Core MSCI Pacific Ex Japan UCITS ETF

Benchmark

MSCI Daily Net Pacific Ex Japan Net Total Return

Description

This ETF aims to track the MSCI Pacific ex Japan Index which is designed to measure the performance of the largest companies in Australia, Hong Kong, Singapore and New Zealand.

Investment team comments

These Pacific economies have impressive combinations of abundant natural resources, large educated workforces and huge regional markets. Companies in this index hope to exploit these factors to produce excellent returns for investors.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Asian Pacific Region ex Japan

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI Canada UCITS ETF

Benchmark

MSCI Canada

Description

This ETF aims to track the MSCI Canada Index, consisting of the largest Canadian stocks.

Investment team comments

This ETF enables us to invest in the largest part of the Canadian stock market. The Canadian stock market is dominated by financial and energy stocks. The Canadian dollar is known as a 'Commodities & Natural Resources currency' (due to the high level of Commodities & Natural Resources exports).

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Canada

Traded / Risk currency

GBP / CAD

Total expense ratio (TER)

0.48%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares Core S&P500 UCITS ETF

Benchmark

S&P 500 Net Total Return

Description

This ETF aims to track the performance of the Standard & Poor 500 Index based on the top 500 publicly traded American companies.

Investment team comments

The S&P 500 Index contains many of the largest companies in the world and benefits from the exposure to a broad range of market sectors. This ETF presents good value, gaining access to US equity exposure at low cost.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.07%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI USA Small Cap ESG Enhanced UCITS ETF

Benchmark

MSCI USA Small Cap ESG Enhanced Focused CTB Index

Description

This ETF aims to track the MSCI USA Small Cap ESG Enhanced Focus CTB Index, offering lower carbon and improved ESG exposure to US Small Cap companies.

Investment team comments

Compared to large cap stocks, small companies tend to have a greater focus to the domestic economy. This ETF provides improved ESG and lower carbon exposure to US Small Cap companies, while maintaining diversified and similar exposure to the broad US Small Cap market.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.43%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Optimised

Provider: State Street

SPDR MSCI World Energy UCITS ETF

Benchmark

MSCI World Energy Index

Description

This ETF aims to track the performance of large and medium sized companies within the energy sector of developed markets.

Investment team comments

This ETF provides a low cost route to gain exposure to energy related equities across developed markets.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Invesco

Invesco Nasdaq 100 UCITS ETF (GBP hedged)

Benchmark

NASDAQ-100 Notional Net Total Return GBP hedged

Description

This ETF aims to track the performance of the Nasdaq-100 Notional Net Total Return Index. It provides GBP hedged exposure to the largest domestic and international non-financial companies listed on the NASDAQ Stock Market based on market capitalisation.

Investment team comments

This ETF provides GBP hedged and diversified exposure to US equities with a particular focus on the technology sector and high growth companies. The fund presents a diverse way to invest in high growth industries and companies, covering major sub-industry groups including computer hardware, software, telecommunications and retail.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.35%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Invesco

Invesco Nasdaq-100 UCITS ETF

Benchmark

NASDAQ-100 Notional Net Total Return

Description

This ETF aims to track the performance of the Nasdaq-100 Notional Net Total Return Index. It provides exposure to the largest domestic and international non-financial companies listed on the NASDAQ Stock Market based on market capitalisation.

Investment team comments

This ETF provides diversified exposure to US equities with a particular focus on the technology sector and high growth companies. The fund presents a diverse way to invest in high growth industries and companies, covering major sub-industry groups including computer hardware, software, telecommunications and retail.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI Europe Industrials Sector UCITS ETF

Benchmark

MSCI Europe Industrials 20/35 Capped Index

Description

This ETF aims to track the performance of the MSCI Europe Industrials 20/35 Capped Index.

Investment team comments

This ETF provides exposure to European Industrials sector index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.18%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI EMU Socially Responsible GBP Hedged UCITS ETF

Benchmark

MSCI EMU SRI Low Carbon Select 5% Issuer Capped GBP hedged

Description

This ETF aims to track the performance of the MSCI EMU SRI Low Carbon Select 5% Issuer Capped Index

Investment team comments

This ETF enables us to access companies in the Eurozone with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.27%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Invesco

Invesco S&P 500 UCITS ETF GBP Hedged

Benchmark

S&P 500 Net Total Return

Description

This ETF aims to track the performance of the S&P 500 index. It provides GBP hedged exposure to 500 of the largest US stocks.

Investment team comments

This ETF provides exposure to US largest companies GBP Hedged, by synthetic structure

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.05%

Type of fund

ETF

Investment style

Passive

Replication method

Synthetic

Replication strategy

Derivative

Provider: iShares

iShares Core S&P 500 GBP Hedged UCITS ETF

Benchmark

S&P 500 Net Total Return GBP hedged

Description

This ETF aims to track the performance of the S&P 500 index. It provides GBP hedged exposure to 500 of the largest US stocks.

Investment team comments

The S&P 500 Index contains many of the largest companies in the world and benefits from the exposure to a broad range of market sectors. This ETF presents good value, gaining access to hedged US equity exposure at low cost.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.1%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI Japan GBP Hedged UCITS ETF

Benchmark

MSCI Japan 100% Hedged to GBP

Description

This ETF aims to track the performance of the MSCI Japan 100% Hedged to GBP Index as closely as possible. The index covers 85% of leading Japanese equity securities.

Investment team comments

Japan is the second largest stock market in the world, after the US. A broad range of stocks are listed on the exchange, giving exposure to both domestic and export-orientated companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.64%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares FTSE 100 UCITS ETF

Benchmark

FTSE 100 Net Tax

Description

This ETF aims to track the performance of the FTSE 100 which comprises of 100 of the largest companies in the UK.

Investment team comments

For any UK-based investor, any stock market holdings are likely to contain an exposure to the largest 100 companies listed in the UK. This ETF delivers exceptional value for money, whilst also delivering very reliable performance.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.07%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI Japan Small Cap UCITS ETF

Benchmark

MSCI Japan Small Cap Net Total Return

Description

This ETF aims to track the performance of small cap Japanese stocks included in the MSCI Japan Small Cap Index.

Investment team comments

This ETF provides access to small cap Japanese equities. For investors with less concern for short term volatility, exposure to smaller companies can provide the opportunity for higher long term returns.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.58%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares S&P SmallCap 600 UCITS ETF

Benchmark

S&P SmallCap 600 Net Total Return

Description

This ETF aims to track the Standard & Poor’s SmallCap 600 Index, offering exposure to 600 small US-listed companies.

Investment team comments

Compared to large cap stocks, small companies have a greater focus to the domestic economy. Compared to the S&P 500 index, which tracks the top 500 companies in the US, this index offers a more diverse range of companies. That said, small-company stocks are much more risky than large companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.4%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares Core MSCI World UCITS ETF GBP Hedged

Benchmark

MSCI World GBP Hedged

Description

This fund aims to track the performance of the MSCI World Index.

Investment team comments

This ETF provides diversified large and mid cap exposure across global equities, covering 23 developed market countries and over 1500 underlying stocks.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: JPMorgan

JPMorgan Europe Research Enhanced Index Equity ESG UCITS ETF

Benchmark

MSCI Europe

Description

This fund aims to achieve a long-term return in excess of the MSCI Europe Index by actively investing primarily in a portfolio of European companies.

Investment team comments

This ETF leverages JPMorgan's Research Enhanced Index approach, using in-depth stock specific insights from a global research team, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: JPMorgan

JPMorgan Global Research Enhanced Index Equity ESG (GBP Hedged) UCITS ETF

Benchmark

MSCI World GBP Hedged

Description

This fund aims to achieve a long-term return in excess of the MSCI World Index by actively investing primarily in a portfolio of companies, globally. At the same time the fund hedges non-GBP currency exposure.

Investment team comments

This ETF leverages JPMorgan's Research Enhanced Index approach, using in-depth stock specific insights from a global research team, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index and reducing exposure to non-GBP currencies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: JPMorgan

JPMorgan Global Research Enhanced Index Equity ESG UCITS ETF

Benchmark

MSCI World

Description

This fund aims to achieve a long-term return in excess of the MSCI World Index by actively investing primarily in a portfolio of companies, globally.

Investment team comments

This ETF leverages JPMorgan's Research Enhanced Index approach, using in-depth stock specific insights from a global research team, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: iShares

iShares MSCI Japan SRI UCITS ETF (GBP Hedged)

Benchmark

MSCI Japan SRI Select Reduced Fossil Fuel

Description

This ETF aims to track the performance of the MSCI Japan SRI Reduced Fossil Fuels Index while minimising exposure to non-GBP currencies.

Investment team comments

This ETF provides exposure to companies in Japan with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests. The fund aims to reduce exposure to non-GBP currencies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: JPMorgan

JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF

Benchmark

MSCI AC Asia Pacific ex Japan Net Total Return USD Index

Description

This ETF aims to achieve a long-term return in excess of the Benchmark by actively investing primarily in a portfolio of Asia Pacific companies (excluding Japan).

Investment team comments

This ETF provides exposure to APAC ex Japan markets with an active fund management.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Asian Pacific Region ex Japan

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Actively Managed

Provider: JPMorgan

JPMorgan Japan Research Enhanced Index Equity ESG UCITS ETF

Benchmark

MSCI Japan

Description

This fund aims to achieve a long-term return in excess of the MSCI Japan Index by actively investing primarily in a portfolio of European companies.

Investment team comments

This ETF leverages JPMorgan's Research Enhanced Index approach, using in-depth stock specific insights from a global research team, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: JPMorgan

JPMorgan UK Equity Core UCITS ETF

Benchmark

FTSE All-Share Index

Description

This ETF aims to achieve a long-term return in excess of the FTSE All-Share Index by actively investing primarily in a portfolio of UK companies.

Investment team comments

This ETF leverages JPMorgan's fundamental research insights and quantitative analysis, which involves gathering information on firms, their competitors and engaging in discussions with a wide range of participants and experts in the relevant industry, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: JPMorgan

JPMorgan US Research Enhanced Index Equity ESG UCITS ETF

Benchmark

S&P 500

Description

This fund aims to achieve a long-term return in excess of the S&P 500 Index (Total Return Net) by actively investing primarily in a portfolio of US companies.

Investment team comments

This ETF leverages JPMorgan's Research Enhanced Index approach, using in-depth stock specific insights from a global research team, seeking to outperform the underlying index after fees whilst maintaining a risk profile that closely resembles the index.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Active

Replication method

Physical

Replication strategy

Not Applicable

Provider: Lyxor

Lyxor Core MSCI Japan UCITS ETF (GBP Hedged)

Benchmark

MSCI Japan Net Return GBP hedged

Description

This ETF aims to track the performance of the MSCI Japan MSCI Japan Daily Hedged to GBP Index as closely as possible. The index covers 85% of leading Japanese equity securities.

Investment team comments

Japan is the second largest stock market in the world, after the US. A broad range of stocks are listed on the exchange, giving exposure to both domestic and export-orientated companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Lyxor

Lyxor Core MSCI Japan UCITS ETF

Benchmark

MSCI Japan Net Return

Description

This ETF aims to track the performance of the MSCI Japan Index as closely as possible. The index covers 85% of leading Japanese equity securities.

Investment team comments

Japan is the second largest stock market in the world, after the US. A broad range of stocks are listed on the exchange, giving exposure to both domestic and export-orientated companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.12%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares FTSE 250 UCITS ETF

Benchmark

FTSE 250 Total Return

Description

This ETF aims to track the performance of the FTSE 250 index. The FTSE 250 is made up of the largest 250 UK stocks outside the FTSE 100, commonly known as 'mid-caps'.

Investment team comments

The FTSE 250 contains a broad mix of holdings and is not dominated by a few companies or sectors, unlike the FTSE 100. Over the long-term mid-sized UK companies have historically outperformed large UK companies, albeit with a higher level of risk.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.4%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: State Street

SPDR Russell 2000 U.S. Small Cap UCITS ETF

Benchmark

Russell 2000 Net Return

Description

This ETF aims to track the performance of the Russell 2000 index, which provides exposure to 2000 small cap US companies.

Investment team comments

Compared to large cap stocks, small companies have a greater focus to the domestic economy. Compared to the S&P 500 index, which tracks the top 500 companies in the US, this index offers a more diverse range of companies at the heart of the real US economy. That said, small-company stocks are much more risky than large companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Optimised

Provider: Invesco

Invesco S&P 500 UCITS ETF

Benchmark

S&P 500 Net Total Return

Description

This ETF aims to track the performance of the S&P 500 Total Return (Net) Index.

Investment team comments

This ETF provides exposure to US largest companies, by synthetic structure

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.05%

Type of fund

ETF

Investment style

Passive

Replication method

Synthetic

Replication strategy

Derivative

Provider: UBS

UBS MSCI USA Socially Responsible UCITS ETF

Benchmark

MSCI USA SRI Low Carbon Select 5% Issuer Capped Index

Description

This ETF aims to track the MSCI USA Socially Responsible 5% Issuer Capped Index.

Investment team comments

This ETF provides exposure to US companies with outstanding environmental, social and governance ratings whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.22%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI World Socially Responsible UCITS ETF

Benchmark

MSCI World SRI Low Carbon Select 5% Capped Select Net

Description

This ETF aims to track the performance of the MSCI World SRI Low Carbon Select 5% Capped Select Net Index.

Investment team comments

This ETF provides exposure to companies with outstanding environmental, social and governance ratings across both developed and emerging equity markets, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.22%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI USA Socially Responsible GBP Hedged ETF

Benchmark

MSCI USA SRI Low Carbon Select 5% Capped GBP hedged

Description

This ETF aims to track the MSCI USA SRI Low Carbon Select 5% Capped in a GBP hedged manner.

Investment team comments

This ETF provides exposure to US companies with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI World Socially Responsible UCITS ETF

Benchmark

MSCI World SRI Low Carbon Select 5% Capped Select Net Total Return GBP hedged

Description

This ETF aims to track the performance of the MSCI World SRI Low Carbon Select 5% Capped Select Net GBP Hedged Index.

Investment team comments

This ETF provides exposure to companies with outstanding environmental, social and governance ratings across both developed and emerging equity markets, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.27%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI USA SRI (GBP Hedged) UCITS ETF

Benchmark

MSCI USA SRI Select Reduced Fossil Fuel Index

Description

This ETF aims to track the performance of the MSCI USA SRI Select Reduced Fossil Fuel Index in a GBP hedged manner.

Investment team comments

This ETF offers GBP hedged exposure to companies in the United States with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI Japan SRI UCITS ETF

Benchmark

MSCI Japan SRI Select Reduced Fossil Fuel

Description

This ETF aims to track the performance of the MSCI Japan SRI Reduced Fossil Fuels Index.

Investment team comments

This ETF provides exposure to companies in Japan with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI USA SRI UCITS ETF

Benchmark

MSCI USA SRI Select Reduced Fossil Fuel

Description

This ETF aims to track the performance of the MSCI USA SRI Select Reduced Fossil Fuel Index

Investment team comments

This ETF offers exposure to companies in the United States with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.2%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI Japan UCITS ETF (GBP Hedged)

Benchmark

MSCI Japan 100% Hedged to GBP

Description

This ETF aims to track the performance of the MSCI Japan 100% Hedged to GBP Index as closely as possible. The index covers 85% of leading Japanese equity securities.

Investment team comments

Japan is the second largest stock market in the world, after the US. A broad range of stocks are listed on the exchange, giving exposure to both domestic and export-orientated companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.29%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI Canada UCITS ETF

Benchmark

MSCI Canada Net Total Return

Description

This ETF aims to track the MSCI Canada Index, consisting of the largest Canadian stocks.

Investment team comments

This ETF enables us to invest in the largest part of the Canadian stock market. The Canadian stock market is dominated by financial and energy stocks. The Canadian dollar is known as a 'Commodities & Natural Resources currency' (due to the high level of Commodities & Natural Resources exports).

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Canada

Traded / Risk currency

GBP / CAD

Total expense ratio (TER)

0.33%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI EMU Socially Responsible UCITS ETF

Benchmark

MSCI EMU SRI Low Carbon Select 5% Issuer Capped

Description

This ETF aims to track the performance of the MSCI EMU SRI Low Carbon Select 5% Issuer Capped Index

Investment team comments

This ETF enables us to access companies in the Eurozone with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.22%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI EMU Small Cap UCITS ETF

Benchmark

MSCI EMU Small Cap Net Total Return

Description

The ETF aims to track the performance of the MSCI EMU Small Cap Index, comprised of smaller capitalisation companies from the 10 developed markets within the Eurozone.

Investment team comments

This ETF provides access to small cap Eurozone equities. For investors with less concern for short term volatility, exposure to smaller companies can provide the opportunity for higher long term returns.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe ex UK

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.33%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI Canada UCITS ETF

Benchmark

MSCI Canada GBP hedged

Description

This ETF aims to track the MSCI Canada GBP Hedged index, consisting of the largest Canadian stocks, independent of movements in the pound/euro exchange rate (currency hedged)

Investment team comments

This ETF enables us to invest in the largest part of the Canadian stock market, while eliminating CAD currency risk. The Canadian stock market is dominated by financial and energy stocks. The Canadian dollar is known as a 'Commodities & Natural Resources currency' (due to the high level of Commodities & Natural Resources exports), and because of the volatility that can be associated with this we have chosen to hedge against movements in the value of the currency.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Canada

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.43%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged)

Benchmark

MSCI Switzerland 20/35 GBP hedged

Description

This ETF aims to track the MSCI Switzerland 20/35 Index, independent of movements in the pound/euro exchange rate (currency hedged). The index provides a more diverse exposure to the largest Swiss stocks, limiting the largest holding to 35% and all other holdings to a maximum of 20%.

Investment team comments

This ETF enables us to invest in the Swiss stock market, while eliminating CHF currency risk. The Swiss stock market is home to some of the most well known global brands, such as Nestle, Novartis and UBS. However, the market is dominated by several large names, with the top ten largest stocks accounting for most of the exposure. This ETF looks to limit the exposure to the larger companies in a sensible and pragmatic manner.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Switzerland

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares S&P 500 Financials Sector UCITS ETF

Benchmark

S&P 500 Capped 35/20 Financial Services Net Total Return

Description

This ETF aims to track the performance of the S&P 500 Capped 35/20 Financial Services. The index consists of all financial services organisations included within the wider S&P 500 index.

Investment team comments

The financial sector plays a key role in the global economy, none more so than in the United States. As the US economy continues to strengthen, financial services businesses will play an important role through the provision of loans, insurance and other financial services products to US consumers and businesses. This ETF provides a very low cost and efficient way to access the financial services sector in the United States, which includes many globally focused financial services organisations such as banks and insurance companies, listed on the US stock market.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.15%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: UBS

UBS MSCI United Kingdom IMI Socially Responsible UCITS ETF

Benchmark

MSCI UK IMI Extended SRI Low Carbon Select 5% Issuer Capped

Description

This ETF aims to track the performance of the MSCI UK IMI Extended SRI Low Carbon Select 5% Issuer Capped Index

Investment team comments

This ETF allows us to access companies in the United Kingdom with outstanding environmental, social and governance ratings, whilst excluding companies that engage in controversial activities or whose products have negative social or environmental impacts. Socially responsible investment incorporates non-financial data alongside traditional investment metrics, with a belief that the companies that are best placed to operate successfully in the future are those with strong sustainability profiles, that do business in a fair and progressive way, and with a management team well aligned to investors interests.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.23%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Vanguard

Vanguard FTSE Developed Europe ex UK UCITS ETF

Benchmark

FTSE Developed Europe ex.UK Net Tax

Description

This ETF aims to track the performance of the FTSE Developed Europe ex. UK Index. It provides exposure to 15 European countries (excluding the UK) with the largest holdings in France, Germany and Switzerland.

Investment team comments

The fund enables us to gain broad exposure to a diverse range of European companies across Europe. Whilst a large part of the exposure is to the dominant economic countries of Germany, Switzerland and France, the fund also includes exposure to the wider continental European economy.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe ex UK

Traded / Risk currency

GBP / EUR

Total expense ratio (TER)

0.1%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Vanguard

Vanguard FTSE Japan UCITS ETF

Benchmark

FTSE Japan

Description

This ETF aims to track the performance of the FTSE Japan Index as closely as possible. The index covers 99% of leading Japanese equity securities.

Investment team comments

Japan is the second largest stock market in the world, after the US. A broad range of stocks are listed on the exchange, giving exposure to both domestic and export-orientated companies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Japan

Traded / Risk currency

GBP / JPY

Total expense ratio (TER)

0.15%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Vanguard

Vanguard FTSE 250 UCITS ETF

Benchmark

FTSE 250 Net Total Return

Description

This ETF aims to track the performance of the FTSE 250 index. The FTSE 250 is made up of the largest 250 UK stocks outside the FTSE 100, commonly known as 'mid-caps'.

Investment team comments

The FTSE 250 contains a broad mix of holdings and is not dominated by a few companies or sectors, unlike the FTSE 100. Over the long-term mid-sized UK companies have historically outperformed large UK companies, albeit with a higher level of risk.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.1%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Vanguard

Vanguard FTSE 100 UCITS ETF

Benchmark

FTSE 100 Net Tax

Description

This ETF aims to track the performance of the FTSE 100 which comprises of 100 of the largest companies in the UK.

Investment team comments

For any UK-based investor, any stock market holdings are likely to contain an exposure to the largest 100 companies listed in the UK. This ETF is an excellent example of how investing in ETFs can be extremely cost effective and deliver very reliable performance.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United Kingdom

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.09%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: Vanguard

Vanguard S&P 500 UCITS ETF

Benchmark

S&P 500 Net Total Return

Description

This ETF aims to track the performance of the Standard & Poor 500 Index. The S&P 500 is based on the top 500 publicly traded American companies.

Investment team comments

The S&P 500 Index contains many of the largest companies in the world and benefits from the exposure to a broad range of market sectors. This ETF presents good value, gaining access to US equity exposure at low cost.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.07%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: iShares

iShares MSCI World Energy Sector UCITS ETF

Benchmark

MSCI World Energy Index

Description

This ETF aims to track the performance of large and medium sized companies within the energy sector of developed markets.

Investment team comments

This ETF provides a low cost route to gain exposure to energy related equities across developed markets.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Developed Markets

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.25%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: DWS

Xtrackers MSCI EMU Index UCITS ETF GBP Hedged

Benchmark

MSCI EMU Net Total Return GBP hedged

Description

This ETF aims to track the performance of the MSCI EMU Index, independent of movements in the pound/euro exchange rate (currency hedged). It provides exposure to the 11 countries of the Eurozone with the largest holdings in France, Germany and Spain.

Investment team comments

This ETF enables us to invest across the broad range of companies in the Eurozone, while eliminating euro currency risk. Investing across the Euro-area offers a very diverse range of companies and sectors, such as the industrials of Germany and the consumer companies of the Netherlands.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Europe

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.17%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: DWS

Xtrackers MSCI Nordic UCITS ETF

Benchmark

MSCI Nordic Net Total Return

Description

This ETF aims to track the performance of the MSCI Nordic Countries Index, providing exposure to companies across the Nordic region.

Investment team comments

This ETF enables us to gain broad exposure to a portfolio of large and medium sized companies from across the Nordic countries of Sweden, Denmark, Finland and Norway. Exposure to the Nordic economies allows us to diversify our European holdings and provides differentiated industry and currency exposure.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Nordic Region

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.3%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: DWS

Xtrackers S&P 500 GBP Hedged UCITS ETF

Benchmark

S&P 500 GBP hedged

Description

This ETF aims to track the performance of the S&P 500 GBP Hedged Index. It provides exposure to 500 of the largest US stocks while attempting to minimise currency risk by entering into forward foreign exchange contracts to 'hedge' US dollar currency exposure.

Investment team comments

The S&P 500 Index contains many of the largest companies in the world and benefits from the exposure to a broad range of market sectors. This ETF presents good value, gaining access to hedged US equity exposure at low cost.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / GBP

Total expense ratio (TER)

0.09%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: DWS

Xtrackers MSCI USA Index UCITS ETF

Benchmark

MSCI USA Net Total Return

Description

This ETF aims to track the MSCI USA index, which provides exposure to large and mid sized companies in the USA.

Investment team comments

The MSCI USA Index contains many of the largest companies in the world and benefits from the exposure to a broad range of market sectors. It includes a higher number of stocks than the S&P 500 index, with more medium sized businesses.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

United States

Traded / Risk currency

GBP / USD

Total expense ratio (TER)

0.07%

Type of fund

ETF

Investment style

Passive

Replication method

Physical

Replication strategy

Full

Provider: DWS

Xtrackers MSCI Pacific ex Japan ESG Screened UCITS ETF

Benchmark

MSCI Pacific ex Japan Select ESG Screened Index

Description

This ETF aims to track the MSCI Pacific ex Japan Select ESG Screened Index which is designed to measure the performance of the largest companies in Australia, Hong Kong, Singapore and New Zealand.

Investment team comments

These Pacific economies have impressive combinations of abundant natural resources, large educated workforces and huge regional markets. Companies in this index hope to exploit these factors to produce excellent returns for investors. The index screens a small subset of the index that has the lowest ESG scores or are involved in certain business activities or controversies.

Characteristics

Asset class

Developed Markets Equities

Geographical focus

Asian Pacific Region ex Japan

Traded / Risk currency

GBP / Varied

Total expense ratio (TER)

0.25%

Type of fund

ETF