3 quick reasons to buy the F100 ETF right now

I think there are a few compelling reasons to buy Betashares FTSE 100 ETF (ASX: F100) right now.

About F100

This ETF gives investors access to 100 blue chip companies on the London Stock Exchange. The UK is a fairly close to Australia in many different ways, so I think investors can take confidence in that.

Many of F100’s biggest holdings are actually global businesses, so don’t think of this ETF as just a UK business ETF. Its biggest holdings are: AstraZeneca, GlaxoSmithKline, HSBC, British American Tobacco, Diageo, Rio Tinto, Unilever, BP, Reckitt Benckiser and Royal Dutch Shell.

Other similar ETFs

There aren’t any UK-specific ones. But there are European ETFs that own some of the UK shares I mentioned above. Examples are: iShares Europe ETF (ASX: IEU) and Vanguard FTSE Europe Shares ETF (ASX: VEQ).

How has the ETF performed?

Source: Best ETFs F100 1-year share price chart.

It has been tough for F100 with COVID-19 and worries about Brexit. Over the past year the ETF’s total return is a decline of 14.4%.

3 quick reasons to buy F100 right now

I think there are three good reasons to consider F100.

The first is that it looks cheaper than other international markets with a price/earnings ratio (according to BetaShares) of under 16.

The second reason is that the Australian dollar is strengthening against the UK pound with worries about Brexit. It can be a good time to invest when there’s fear.

The third reason is that I believe F100 will provide solid dividends once COVID-19 impacts are over and UK companies don’t feel strongly about holding onto capital/reducing dividend payments.

But there are plenty of other ETFs out there for growth and/or dividends. Check out our list of ASX ETFs.

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Disclaimer: Any information contained in this article is limited to general financial advice/information only. The information should not be relied upon because it has not taken into account your specific needs, goals or objectives. Please, consult a licenced and trusted financial adviser before acting on the information. Past performance is no guarantee of future performance. Nothing in this article should be considered a guarantee. Investing is risky and can result in capital loss. This article is authorised by Owen Raszkiewicz of The Rask Group Pty Ltd. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.
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