10 Most Popular ETFs in Q1

The 10 most popular ETFs on Morningstar.co.uk in Q1 show investors are truly hunting down the lowest-cost providers

Holly Cook 9 April, 2013 | 4:49PM
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Over the first three months of the year, users of Morningstar.co.uk have shown a clear and present demand for gold. This is evident by our list of most-searched-for ETFs on the website in the first quarter, where five of the top 10 are exchange-traded products tracking physical bullion or gold securities. But that’s not the only interesting trend to emerge so far this year.

It is very interesting to see several Vanguard ETFs on the list. This could be a warning for other, not so low-cost ETF providers.

“Quite clearly gold is still at the forefront of our readers’ minds, which suggests a certain degree of mistrust in the equity rally,” commented Jose Garcia-Zarate, a senior ETF analyst at Morningstar. It’s also apparent that “those interested in equities are favouring US and emerging markets for their obvious better prospects compared to developed Europe,” said Garcia-Zarate. 

But the most interesting trend highlighted by our data puts the spotlight on one particular fund company. “It is very interesting to see several Vanguard ETFs on the list. It means that despite being a very small operation in Europe, the über low-cost message espoused by Vanguard is reaching out in quite an effective manner,” Garcia-Zarate added. This could be a warning for other, not so low-cost ETF providers. Garcia-Zarate points to the FTSE 100 as an example, where the Vanguard FTSE 100 ETF levies a total expense ratio of 10bps, while the most popular ETF tracking this index in terms of assets under management is the iShares FTSE 100 ETF, which charges 40bps. “This is a huge difference and if you are a buy-and-hold retail investor looking for plain vanilla exposure to the FTSE 100, then it looks like a bit of a no brainer and this message is clearly getting through.”

10 Most Searched for ETPs in Q1

SPDR S&P 500 ETF (USD) (SPY)
4 Stars
Morningstar research report

SPDR Gold Shares Trust (USD) (GLD)
No quantitative rating
Morningstar research report

ETFS Physical Gold ETC (GBP) (PHGP)
No quantitative rating
Morningstar research report

iShares Markit iBoxx GBP Corporate Bond (GBP) (SLXX)
3 Stars
Morningstar research report

Source Physical Gold P-ETC (USD) (SGLD)
No quantitative rating
Morningstar research report

Vanguard FTSE Emerging Markets ETF (GBP) (VFEM)
No quantitative rating
Not covered by Morningstar analysts

iShares FTSE UK Dividend Plus Inc (IE) (GBP) (IUKD)
2 Stars
Morningstar research report

ETFS Gold Bullion Securities ETC (USD) (GBS)
No quantitative rating
Morningstar research report

Vanguard FTSE 100 ETF (GBP) (VUKE)
No quantitative rating
Not covered by Morningstar analysts

iShares Physical Gold ETC (GBP) (SGLN)
No quantitative rating
Not covered by Morningstar analysts

 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Gold Bullion Securities217.73 USD1.59
Invesco Physical Gold ETC228.15 USD1.63
iShares Core £ Corp Bond ETF GBP Dist123.00 GBP-0.14Rating
iShares Physical Gold ETC GBP3,608.00 GBX-1.07
iShares UK Dividend ETF GBP Dist749.90 GBX-0.08Rating
Vanguard FTSE 100 UCITS ETF35.85 GBP0.41Rating
Vanguard FTSE Emerg Markets ETF $Dis GBP47.93 GBP0.16Rating
WisdomTree Physical Gold GBP17,356.00 GBX-0.94

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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