No UK equity income ETF

aroominyork

There are equity income ETFs for Europe, the US, emerging markets, global... but I can't see any for the UK. Why is that? Surely there is demand.

InvesterJones

What do you mean by 'UK' and 'income'? The FTSE100 is mostly value (non-growth) and many income (distributing) versions of ETFs tracking it are available. If wanting more domestic focus then FTSE250 distributing trackers are also available.

EthicsGradient

If you mean you'd like a high yield UK ETF, there's iShares UK Dividend:

iShares UK Dividend UCITS ETF | IUKD

masonic

https://forums.moneysavingexpert.com/discussion/6667176/no-uk-equity-income-etf

IUKD, UKDV, LDUK, and UKSD, although only the first is large enough for my taste. The UK is also spoilt for choice in the Investment Trust space, several of which have charges low enough to rival active ETFs (e.g. TMPL, CTY, MRCH etc).

kempiejon

As above; IUKD and UKDV spring to mind, I think L&G offer a FTSE100 high yield product but can't recall details. The ITs mentioned too. Investment trusts are not ETFs but reasonable charges and some with a >20 year record of high yield and increasing income https://www.theaic.co.uk/income-finder/dividend-heroes.

aroominyork

Ah, so it seems UK equity income ETFs prefer to use the 'dividend' word. None of IUKD, UKDV, LDUK recent histories is as good as Vanguard's OEIC (UKSD is new so is not shown).

Linton

Beware of IUKD. In 2008 it was over-invested in the financial sector and its price crashed by more than 60%. Without income reinvestment it has still not recovered .

In my view if you really want equity income you should use actively managed funds. Judgement is essential to ensure diversification and to identify underlying investments with sustainable dividends. Blindly following a yield weighted index is very risky.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81989648#Comment_81989648

Looking on Trustnet at 10 year returns on UK equity income funds (OEIC), Vanguard's index fund is #8 out of 65. Whether or not there are better investment trust options, that is plenty good enough for me.

FIREDreamer

VUKE is a FTSE100 tracker ETF paying dividends quarterly. Similarly, use VMID for the FTSE250.

kempiejon

https://forums.moneysavingexpert.com/discussion/comment/81989648#Comment_81989648

IUKD was hurt in that period, as were my income FTSE100 picks. I think it changed it's methodoligy but I don't follow. I'm a convert to the premise that most active investment doesn't beat the market average longer term after costs. There are low cost market trackers, some markets are more yieldy than others. Income/capital, it's all money; cap weighting like industry or country can be risky too.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81990336#Comment_81990336

Yup, but that is a straight FTSE100 fund rather than equity income. There is lots of crossover, as expected given the FTSE having lots of dinosaur/income-generating companies. Comparing Vanguard's equity income index fund to its FTSE100 fund, HL shows historic yields of 3.82% and 2.85% respectively.