Investments  

Top 50 ETFs league table launches

Investors Chronicle has launched its Top 50 low cost exchange traded funds (ETFs) guide - a list of the best low cost portfolio building blocks for investors.

There are more than 1500 ETFs listed on the London Stock Exchange and we have whittled this down to 50, making a complex subject easy for investors to understand.

Investors Chronicle believes more investors should be using ETFs to lower the cost of their portfolios. Many ETFs have annual fees of less than 0.5 per cent.

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In our search for the best exchange-traded funds (ETFs), we first identified the indices that investors should most want to track.

We then went in search of minimal tracking difference – how closely the ETF tracks its benchmark index.

We also looked for low fees from the managers of the ETFs and good liquidity - the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.

The IC Top 50 ETF guide includes ETF options from all the main asset classes – UK and overseas equities, fixed income, gilts, property and commodities. We also include ETFs that will generate high levels of income for investors.

A particular advantage of ETFs is they can be used to get cheap exposure to the US market, where active managers struggle to add value.

US ETFs track different indices containing selections of US-listed companies ranked in different ways. The most popular is the S&P 500 index, which tracks the largest US companies according to their share price.

The Top 50 ETFs list appears in the Friday 23 May edition of Investors Chronicle, available for £4.10 from most local newsagents.

Alternatively you can purchase a print + digital subscription for £41.25 every 13 weeks or £165 a year. Digital only and print only subscriptions are also available. Visit investorschronicle.co,uk for more details.

Moira O’Neill is Personal Finance Editor of Investors Chronicle