My favourite FTSE ETF (PSRU) is about to close!

Yep, one of the best FTSE ETFs, in my opinion, was and is PSRU but it is sadly, closing very soon.

The Invesco FTSE RAFI UK 100 UCITS ETF seeks to track the FTSE RAFI UK 100 index. The FTSE RAFI UK 100 index tracks 100 UK stocks. The FTSE RAFI Index Series selects and weights index constituents using four fundamental factors, rather than market capitalisation. The factors are dividends, cash flows, sales and book value.

 

The ETF's TER (total expense ratio) amounts to 0.39% p.a.. The Invesco FTSE RAFI UK 100 UCITS ETF is the only ETF that tracks the FTSE RAFI UK 100 index. The ETF replicates the performance of the underlying index by full replication (buying all the index constituents). The dividends in the ETF are distributed to the investors (Quarterly).

 

The Invesco FTSE RAFI UK 100 UCITS ETF is a very small ETF with 15m GBP assets under management. The ETF was launched on 3 December 2007 and is domiciled in Ireland.

PSRU over the last 5 years has gained 127% (S&P 500 88%, IITU 135%, BNKE 350%).

Ending

The Invesco FTSE RAFI UK 100 UCITS ETF (PSRU) is being terminated on 18 February 2026.

 
Key details regarding the closure:

Last Day of Trading: The final day to trade shares of PSRU will be 16 February 2026.
Termination Date:     The fund will officially terminate on 18 February 2026.

 

Alternatives

PSRU was a distributing GBP ETF. 

A suitable alternative would be IUKD. 

A comparison table is shown below. ordered for 1yr returns and includes the S&P 500:

We can see that IUKD is a much bigger fund (GBP dist) with a similar TER and has performed better than PSRU over this last year.

PSRE (Europe) is an alternative to PSRU but only has a 23m fund size and so could also be due to be axed.

Plan of action

PSRU normally pays a dividend in March, and no dividends seem to be declared or paid in the whole of 2026 so far.

So we can sell PSRU anytime between now and Monday 16th February 2026.

I will be selling PSRU and buying IUKD soon.

What about my favourites?

Some of my past favourites have included:

IITU - S&P Tech companies

IUCM - S&P Communication companies

SWDA - Global Core MSCI index (very popular world index fund)

Over the last 6 months, we can see IUKD has beaten all of them, including the S&P 500 and IITU.

The $USD is still weakening, however I plan to hold onto my tech and comms ETFs and my MSCI core index trackers. 

Right now though, no one wants to invest in a country like the USA which is so unstable.

However, if I was buying fresh stocks now, or held these ETFs inside an ISA or SIPP, I would seriously consider selling them and buying IUKD. I would also buy BNKE too - This Euro bank ETF has gained 25% in the last 6 months (IUKD 19%).

If and when the USA starts to pick up (which could happen very suddenly if/when Trump and some of his cronies are impeached) then all US stocks will start to rise very rapidly. 

In any case, holding global/all-world ETFs will still give us a large exposure to the US.