A revolutionary fund set up this week giving exposure to blue-chip
companies is set to go head to head with unit trusts and investment trusts.
The UK market's first exch^_ange-traded fund, called iFTSE 100, embraces
the benefits of both shares and funds.
The fund, set up by iShare, is a new investment tool and, like the shares
of any listed company, investors can trade in them at any time during
market hours through any stockbroker.
But, like a fund, the shares will provide instant expo-
sure to an
entire market or sector index.
The annual management charge is 0.35 per cent. Normally, no stamp duty
will be incurred dealing in iFTSE 100 shares and they can be inc^_luded in
an Isa. The launch price of the shares is 10.
The iFTSE100 fund is the first of several planned funds to be listed on
the London Stock Exchange in its Extramark index.
It will be managed by Barclays Global Investors.
iShares director John Dem^_- ^_aine says: “The fund marks the beginning of
a change in the investment landscape in the UK. iShares' simplicity,
flexibility, transparency, inst^_ant diversity and great value for money
will make them attractive to a wide range of investors for an enormous
variety of uses.”