About this index
The Elston UK Equtiy Income Index is a UK Equity Income index administered by Elston Indices.
The strategy is designed to focus on the UK Equity Income Majors - the largest dividend payers in the UK equity market.
[This index was formerly known as the Elston Smart-Beta UK Dividend Index until 28th November 2025]
This Index is:
1. Income focused: The index is dividend weighted, rather than market cap weighted or yield-ranked.
2. Forward looking: The index uses forecast dividends, rather than past dividends, so keeps up with changing outlook.
3. Updated monthly: The index is objective and data led when it comes to selecting companies with dividend potential.
The strategy is designed to focus on the UK Equity Income Majors - the largest dividend payers in the UK equity market.
[This index was formerly known as the Elston Smart-Beta UK Dividend Index until 28th November 2025]
This Index is:
1. Income focused: The index is dividend weighted, rather than market cap weighted or yield-ranked.
2. Forward looking: The index uses forecast dividends, rather than past dividends, so keeps up with changing outlook.
3. Updated monthly: The index is objective and data led when it comes to selecting companies with dividend potential.
Accessing this index
Indices are for benchmarking purposes. You cannot invest in an index.
Visit Valu-Trac Investment Management's website to learn more about funds linked to this index.
Visit Valu-Trac Investment Management's website to learn more about funds linked to this index.
Investing in the UK Equity Income Majors
This systematic index strategy is designed to capture the UK equity income majors: the stock market's biggest dividend payers, based on forward looking estimates, refreshed monthly.
Why focus on the biggest dividend payers?
A large part of the UK equity market’s total return is drive by companies paying dividends. Where as a typical index weights companies by their size (market capitalisation), this “smart” index strategy is designed to focus on weighting companies by the largest contributors to the overall dividend pie. This emphasises this core characteristic of return. It could also be described as a tilt to the Yield factor.
Why forward looking?
Markets look forwards, not backwards. So should investment strategies. If the strategy was backward looking, it would not be considering future information. The monthly rebalance means that future information is captured. For example, in 2022 the oil price started to rise substantially. This meant that the dividend payments from oil companies would also increase. The systematic rules based approach captured the forward looking changes and started increasing the allocation to oil companies within the strategy. This led to the strategy remaining resilient in that challenging year.
Why updated monthly?
If the strategy ran weekly, trading costs and turnover would be too high. If the stragey ran quarterly, it would not capture the dynamic changes in analysts consensus of earnings and dividends forecasts in a timely manner. A monthly update is therefore the ideal review period for this systematic screen of the UK income majors.
Why focus on the biggest dividend payers?
A large part of the UK equity market’s total return is drive by companies paying dividends. Where as a typical index weights companies by their size (market capitalisation), this “smart” index strategy is designed to focus on weighting companies by the largest contributors to the overall dividend pie. This emphasises this core characteristic of return. It could also be described as a tilt to the Yield factor.
Why forward looking?
Markets look forwards, not backwards. So should investment strategies. If the strategy was backward looking, it would not be considering future information. The monthly rebalance means that future information is captured. For example, in 2022 the oil price started to rise substantially. This meant that the dividend payments from oil companies would also increase. The systematic rules based approach captured the forward looking changes and started increasing the allocation to oil companies within the strategy. This led to the strategy remaining resilient in that challenging year.
Why updated monthly?
If the strategy ran weekly, trading costs and turnover would be too high. If the stragey ran quarterly, it would not capture the dynamic changes in analysts consensus of earnings and dividends forecasts in a timely manner. A monthly update is therefore the ideal review period for this systematic screen of the UK income majors.
Index InformationElston UK Equity Income Index [ELSUKI Index]Index Objectives:
The index uses consensus forecast gross cash dividends for each constituent company, in relation to the total for the index, to determine the size of each holding. The index is therefore dividend weighted and rebalanced monthly to reflect changing consensus estimates. The index is a Net Total Return index. [ELSUKI Index]. [This index was formerly known as the Elston Smart-Beta UK Dividend Index until 28th November 2025] Format: Non-significant Benchmark Index Methodology Owner: Elston Benchmark Index Administrator: Elston Fund InformationVT Munro Smart-Beta UK Fund
ISIN: GB00B1Z8LM43 |
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