XTrackers FTSE 100 Income UCITS ETF 1D
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 9bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 06 Sep 2007 |
| Ticker: XUKX |
| ISIN: LU0292097234 |
This fund offers targeted exposure to the dividend-paying potential of the United Kingdom's largest corporations. The investment objective is to track the performance of the FTSE 100 Declared Dividend Index, which is composed of the same constituents as the mainstream FTSE 100 Index. However, this specialized benchmark is weighted based on the total declared dividends of each company over the preceding twelve months. This methodology provides a distinct income-oriented approach, focusing on the actual cash returns distributed to shareholders rather than solely on market capitalization, offering investors a purer play on the dividend yield generated by UK blue-chip companies.
The strategy is particularly suitable for investors seeking a consistent and potentially growing stream of income from their equity holdings. By focusing on the 100 largest and most established firms listed in the UK, the fund maintains a portfolio of generally stable, high-quality businesses with a history of returning capital to investors. It can serve as a core component within a diversified, income-focused portfolio or as a strategic allocation for those looking to enhance their portfolio's yield with exposure to the UK market. The fund is structured to distribute the income it collects from the underlying holdings to its investors on a regular basis, providing a tangible cash flow.
Utilizing a direct physical replication method, the fund holds the actual shares of the companies within the index, which ensures transparency and minimizes counterparty risk. This structure provides a straightforward and efficient way to gain access to a basket of the UK's leading dividend-paying stocks through a single, regulated investment vehicle. As a UCITS-compliant fund, it adheres to European standards for investor protection and diversification, making it an accessible option for a wide range of investors.
