iShares has introduced the iFtse TMT fund, an exchange traded fund (ETF) that has Barclays Global Investors as the investment manager.
ETFs are similar to open-ended investment companies, and can only hold the shares of other companies, allowing the investor to spread their money between a number of different investments tracking indices. Shares in ETFs can be bought and sold through stockbrokers, making them easy to access.
This is the first ETF in the UK, as they have previously been confined to the US and the Far East. The fund is aimed at investors who want medium to high risk exposure to the technology sector.
iFtse TMT fund will track the recently created FTSE TMT index, which lists 36 UK companies that are involved in the technology, media and telecoms sectors. These include companies such as Vodaphone, WPP, Sage and Baltimore Technologies.
According to Standard & Poors the Barclays Global Investors growth and income fund is ranked 127 out of 235 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to October 16, 2000.