By the UK Tax Drag editorial team · Reviewed
New: full metric transparency
Every quantitative metric used in UK Tax Drag's ETF tools now has a dedicated transparency page showing the formula, data source, lookback window, annualisation method, and a worked example you can reproduce yourself.
- ETF Metrics Transparency hub — index of all 8 metric pages with the standard inputs (price source, benchmark choice, risk-free rate, return frequency).
- Beta · Sharpe · Sortino · Max drawdown · Volatility · Tracking error · Information ratio · Up/down capture
- ETF Tools Map — which UK Tax Drag tool to use for which question.
Short version
Read this before comparing metrics
Some ETF numbers are factsheet fields. Some are research proxies.
Issuer fields help identify the product. Research proxies help compare the job of a fund or portfolio sleeve. Neither should be used as a live dealing instruction.
Metric by metric
| Metric | How to read it here | What to verify elsewhere |
|---|---|---|
| OCF | Used as a rounded ongoing-charge snapshot for cost comparison. | Confirm on the issuer factsheet or KID because charges can change. |
| Yield | Used as a cashflow indicator. High yield is treated as a warning prompt, not a quality score. | Check current distribution yield, historic distribution dates and whether payments include option premium, bond interest, dividends or capital return. |
| Beta | A directional market-sensitivity proxy for comparing portfolio sleeves. | Check issuer or data-provider beta if you need a precise benchmark-specific and time-period-specific figure. |
| Sharpe | A rounded risk-adjusted-return proxy used to compare shortlist candidates. | Verify the calculation period, return basis, currency and risk-free-rate assumption before treating it as a formal statistic. |
| Sortino | A downside-risk proxy. Useful for comparing rough shape, not for ranking funds mechanically. | Check downside-deviation method, time period and whether the fund has enough history. |
| Volatility | An annualised risk proxy used to make risk visible in the builder and model pages. | Check current factsheet volatility, currency, lookback period and benchmark. |
| Drawdown proxy | A stress indicator to stop users treating smooth-looking portfolios as risk-free. | Review actual maximum drawdown over the relevant market period if this matters to the decision. |
| Overlap | A research approximation of duplicate exposure and role duplication. | Use full holdings files if exact overlap, sector split or top-ten concentration matters. |
Source confidence labels
Direct product link
The catalogue has a direct issuer or product URL for that ETF entry.
- Still check the share class, exchange line, currency and factsheet date.
- Useful for iShares, Vanguard and other high-priority shortlist entries where the direct page has been reviewed.
Issuer finder fallback
The direct product URL is not yet verified, so the link may route to the issuer or product finder.
- Search by ticker or ISIN.
- Do not treat the entry as source-complete until the exact product page is confirmed.
Catalogue proxy
The entry exists so the selector can compare broader provider coverage, but some risk and regional fields are heuristic.
- Good for discovery.
- Not enough for a final buy/sell decision without issuer confirmation.
Special treatment: WINC, INCU and overlay-income ETFs
Covered-call-plus-futures or option-overlay income funds should not be mixed lazily with plain dividend ETFs. Their distributions can come from a different return path and their equity beta, upside capture, drawdown behaviour and tax treatment may not behave like a simple high-dividend index fund.
Separate bucket
WINC and INCU belong in the overlay-income bucket, not the plain dividend ETF bucket.
Yield warning
Distribution yield is not the same as free return. It must be read beside beta, upside participation and strategy mechanics.
Factsheet first
Read the issuer page, KID and strategy description before comparing it with standard equity income ETFs.
Professional verification routine
1. Identify the exact product
Confirm ticker, ISIN, share class, exchange line, currency, domicile, distribution policy and replication method.
2. Check the job
Decide whether the ETF is a core, satellite, bond ballast, income sleeve, overlay product or thematic bet.
3. Compare like with like
Do not rank a bond ETF, S&P 500 ETF and overlay-income ETF using one headline metric.
4. Recheck live data
Use issuer factsheets and platform data for live price, yield, AUM, spread, tracking, distribution and availability.
5. Build the whole portfolio
Use the builder to see weighted cost, yield, beta, volatility, concentration and region mix.
6. Write the reason down
If the fund cannot pass a one-sentence role test, it probably does not belong in the shortlist.
Related Guide content
- Tax calculator
- Complete UK ISA guide
- 60% tax trap guide
- HICBC deep dive
- UK tax rates 2026/27
- Find a UK tax adviser
- Methodology
- Glossary
More in Guide
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Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.