An In-depth Look at UK Dividend ETFs

Unlike holding a handful of individual stocks, buying a well-diversified ETF can protect investors from over-exposure to a single firm or sector

Dimitar Boyadzhiev 25 September, 2017 | 7:45AM

Over the past decade income-seeking investors have poured money into dividend-screened UK equity ETFs. Their appeal continues to be supported by the ultra-loose monetary policy and historically low bond yields.

Investors have several passive options to choose from. This diversity can make choosing the right fund a daunting task; not least when confronted with very different investment strategies marketed under a similar message.

Why Dividends?

Equity dividends have a tendency to rise over time, and so potentially they offer income-seeking investors better long-term inflation protection than conventional bonds.

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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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares UK Dividend ETF GBP Dist593.02 GBX-0.06
SPDR® S&P UK Dividend Aristocrats ETF10.39 GBP-0.37

About Author

Dimitar Boyadzhiev  is a Passive Strategies Research Analyst for Morningstar

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