RLAM ETF's
How you spread investments across equities, bonds, cash etc. ETFs can make rebalancing fast and low cost.
Large institutions (e.g., banks) that create/redeem ETF units in huge blocks (‘creation units’) to keep market price aligned with NAV.
The index an ETF tracks or tries to beat (e.g., FTSE AllShare, MSCI World). Our Tilt ETFs aim to stay close to their benchmarks while improving climate metrics.
Gap between buy price (offer) and sell price (bid). Narrow spreads = good liquidity.
CO₂ emissions per £1m revenue. Our Active ETFs systematically tilt away from high carbon companies.
FCA rules requiring clear value and fair outcomes.
APs swap securities baskets for new ETF shares (creation) or vice versa (redemption), keeping supply/demand balanced.
ETFs publish portfolios daily (vs monthly/quarterly for mutual funds), so you always know what you own.
Spreading risk across many companies/sectors. One ETF = instant basket of 100s of stocks (top reason ETF investors cite).
Pooled investment trading on London Stock Exchange like a share, holding diversified baskets with intraday pricing.
Annual fund fee (e.g., 0.15%).
Buying part of an ETF share (e.g., £50 of a £100 ETF). Helps with regular investing on platforms.
Systematic overweight to better managed companies (strong boards, aligned execs). Part of our equity tilt DNA.
Real time estimate of ETF value during trading hours, helping you gauge fair price.
Buy/sell ETFs during market hours (not just end-of-day like mutual funds).
Efficient tax wrapper that can hold ETFs.
Ease of buying/selling without significant price impact. Check average daily volume (ADV) and spreads on platforms.
Firms quoting continuous buy/sell prices to ensure smooth ETF trading (beyond just APs).
Once-a day pricing, less transparent, T+2 settlement. ETFs trade faster with daily holdings.
Total value of ETF holdings ÷ shares outstanding. Market price should track closely.
All-in annual cost (management + other expenses).
Aligns towards companies on track for net zero (our climate objective).
Cost to buy/sell ETFs.
Primary = authorised creations; Secondary = exchange trading by investors like your clients.
An investment approach that considers environmental, social and governance factors alongside financial analysis and active ownership.
Self-Invested Personal Pension. A tax efficient retirement building investment wrapper.
Rules-based index tweaks (as used in our Tilt ETFs). Sit between passive and active approaches.
Engaging/voting to improve portfolio companies. Built into our ETFs with the help of our Responsible Investment team.
Short code for trading. Search platforms by ticker.
How much an ETF deviates from its benchmark. Tracking error is typically low (2-4%) for tilts like ours.
Climate risk from policy/technology shifts.
Day-to-day price swings. ETFs typically experience lower volatility than single stocks due to diversification.
The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. For information purposes only. Information derived from sources other than Royal London Asset Management is believed to be reliable and accurate, however we do not independently verify or guarantee its accuracy or validity. All information is correct at the date of this document unless otherwise stated. Telephone calls and written communications may be recorded and monitored. For further information please see the Privacy Policy at www.rlam.com. Issued in the UK by Royal London Asset Management Limited, 80 Fenchurch Street, London EC3M 4BY. Authorised and regulated by the Financial Conduct Authority, firm reference number 141665. A subsidiary of The Royal London Mutual Insurance Society Limited. ID: WPG 005 TSK-4382
