XDUK
Xtrackers FTSE 100 UCITS ETF 1D
Published by Radif Partners · Updated
Overview
Xtrackers FTSE 100 UCITS ETF 1D (XDUK) tracks the FTSE 100 index and holds its constituents directly, a physical replication managed by Xtrackers. Dividends are paid out to holders rather than reinvested, so XDUK suits investors seeking regular income. The fund is domiciled in LU, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.09% of assets, and the fund holds 89M under management. Over five years the fund returned 12.1% a year on average, against 17.9% over three years. It is not eligible for the French PEA, but can be held in a securities account, a UK ISA or a German Depot. Its risk level is rated medium. Launched on 2007-06-20, the fund is denominated in GBP and has 19 years of track record. It is a UCITS fund, so it follows the European framework on diversification, liquidity and asset segregation. Because XDUK distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in LU sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
Ongoing charges of 0.09% place this fund 42th of 225 comparable funds, whose median is 0.20%. On £10,000 that costs about 9 a year and 90 over ten years at a constant amount, deducted daily and never visible on a statement: it shows up in the gap between the fund's return and its index's. At this level, neither low enough to be an argument nor high enough to be an obstacle, the decision rests elsewhere: on the index tracked, on the distribution policy, and on what your broker charges to buy.
Replication is physical: the fund actually holds the constituents of FTSE 100, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.09% headline. That is why two funds at the same price do not track their index with the same fidelity.
The domicile, Luxembourg, is not an administrative detail: it determines the withholding tax the fund suffers on the dividends it receives, and that loss appears in no fee table. Luxembourg has a comparable treaty network but is not as favourable as Ireland on US equities, a difference visible on a world index and not on a European one. For the holder, the UCITS framework also brings the key information document in their own language, diversification rules, and separation of the fund's assets from the issuer's.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
At 89 million in assets, this fund is small, and size is the main risk here, ahead of the index's volatility. A fund that stays below its issuer's viability threshold ends up merged or wound up, and both happen without your consent: liquidation forces a sale on a date you did not choose, hence a taxable gain at the wrong moment, and a merger moves you to an index that is not quite the one you picked. Assets falling year after year are the signal to watch, more than the absolute level. At this size the spread between buying and selling price is also wider, which costs on every order.
FTSE 100 is a broad index, and that is the building block most portfolios have reason to own before any other, for a simple reason: it requires no forecast. Two points deserve checking before calling it diversified. Cap weighting concentrates the portfolio on the largest companies, so the top ten holdings can make up a substantial share, and that concentration grows without any rule changing. And the geographic scope matters: a developed-world index leaves out emerging markets, while a broad US index is not global exposure despite the international revenue of the companies it holds.
Over one year the fund shows 15.6% and over five years 12.1% annualised, two figures close together, which is the most ordinary and least informative configuration: it does not say the fund is steady, only that the chosen start and end points resemble each other. Comparing these figures with another fund means something only if the index is the same; otherwise it is an index comparison dressed as a fund comparison.
0.09%
89M
89M GBPMedium
268
Physical
Distributing
GBP
LU
FTSE 100
Xtrackers
2007-06-20 (19 years)
Contextual Analysis
Fund Size
With 89M in assets, this is a small fund, watch out for spreads and closure risk.
Fee Positioning
A TER of 0.09% is among the lowest on the market, excellent value.
Track Record
Launched in 2007-06-20, this fund has 19 years of history, long and reliable track record.
Risk Profile
Medium risk, good risk/return balance for a 5+ year horizon.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | +1.2% |
| 3 Months (est.) | – | +3.7% |
| 6 Months (est.) | – | +7.5% |
| YTD (est.) | – | +6.2% |
| 1 Year | +15.6% | +15.6% |
| 3 Years | +17.9% | +63.7% |
| 5 Years | +12.1% | +77.3% |
| Since inception (19y) | +15.2% | +1369.3% |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
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About this ETF
The Xtrackers FTSE 100 UCITS ETF 1D tracks the FTSE 100 index. It is managed by Xtrackers using physical replication and follows a distributing distribution policy. The fund is denominated in GBP and domiciled in LU. It has a total expense ratio (TER) of 0.09%.
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Frequently asked questions
What do XDUK's 0.09% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £0.90 a year and roughly £9 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
What should you re-check on XDUK once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of FTSE 100, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does XDUK lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and Xtrackers publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Why does XDUK's Luxembourg domicile matter?
Because it determines the withholding tax the fund suffers on the dividends it receives, and that loss appears in no fee table. Luxembourg has a comparable treaty network but is less favourable than Ireland on US equities. The UCITS framework also brings the key information document in your own language.
Does XDUK pay dividends?
Yes: the fund distributes and pays out the dividends it receives, on a calendar set by Xtrackers. The payment is taxable in the year you receive it in most accounts, even if reinvested at once, and reinvesting by hand costs a commission each time. An accumulating class on the same index avoids that friction for anyone who does not need the income.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.