View more on these topics

Spa sets sail on MarketGrader

Spa International, a specialist provider of exchange-traded funds, has brought three ETFs to the UK market that aim to replicate three MarketGrader indices.

The indices aim to outperform the S&P 500 and the majority of active US managers over the long term.

ETFs are similar to tracker funds that passively track an index but the difference is they can be traded like a share, enabling investors to get in and out of the market quickly, while providing diversity of shares like an Oeic or unit trust.

The MarketGrader 40 Index evaluates more than 5,600 US equities on a daily basis and selects a basket of 40 stocks every quarter that are based on a company’s rank. Overall attractiveness and diversification in terms of sector and size are important factors. MarketGrader 100 and MarketGrader 200 use the same process to select a basket of 100 and 200 stocks respectively, although rebalancing occurs twice a year.

The MarketGrader indices are constructed on the basis of companies’ final rankings and all companies must have a market capitalisation of at least $100m in the case of the MarketGrader 40 and 100 indices and $250m for the MarketGrader 200 index. No economic sector can represent more than 30 per cent of the MarketGrader 40 index, 25 per cent of the MarketGrader 100 Index or 20 per cent for the MarketGrader 200 index.

All indices are equally weighted, which means that at the beginning of every rebalance, the companies will be awarded an equal dollar value.

These ETFs provide access to the US market through a different route to the S&P 500 and may be used as a low-cost diversifier within a portfolio. However, despite the growing popularity of ETFS, they are most likely to be used by wealth managers and institutional investors such as multi-managers.


Directgov helps in search for lost pensions

Directgov has set up a free pension tracing service aimed at people it believes are losing out on pension entitlements worth thousands of pounds.The government body says its research shows over half of adults have no idea how much money they have built up in pension schemes simply because they have stopped keeping track of […]

Mortgages Plc to withdraw adverse buy-to-let products

Merril Lynch subsidiary Mortgages plc has announced it will be pulling all of its adverse buy-to-let products from October 2.The lender, which has made numerous criteria changes over the last two months, recently announced it was suspending all heavy and unlimited adverse business.Mortgages plc has also reduced maximum LTVs on self cert products from 85 […]

Wynne-Jones to exit Assureweb

Assureweb director of sales and marketing Stephen WynneJones is leaving at the end of October.A reshuffle will see his role split between chief executive John Spellman and Norwich Union’s Mark Wilson.Wilson, who was responsible for managing relationships between NU’s e-commerce business and key distributors, will become head of propositions while Spellman will take a more […]

Bonds going bust? Not so fast….

In recent months bond bears have been reinvigorated, and market commentary suggesting “the end of the bond (bull) market is near” has become commonplace. We think these comments are premature. Explaining the global government bond sell-off October has seen renewed pressure on global government bonds, initially provoked by a Bloomberg article suggesting that the ECB […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm