FTSE100 Tracker Recommendations

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ChloeRadshaw
ChloeRadshaw Posts: 137 Forumite
in Pensions, annuities & retirement planning
I m looking for a FTSE100 tracker product that I can invest in :(

So far on Hargreaves and Lansdowne I have only see FTSE100 trackers that charge a 1% annual charge which I think is quite significant

Does any one have any suggestions of products which offer a better fee then this?

I understood the ETF's are more cost effective but I am having a hard time finding these on the H&L website

Thanks all for your advice on this
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  • ChloeRadshaw
    ChloeRadshaw Posts: 137 Forumite
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    ChloeRadshaw wrote: »
    I m looking for a FTSE100 tracker product that I can invest in :(

    So far on Hargreaves and Lansdowne I have only see FTSE100 trackers that charge a 1% annual charge which I think is quite significant

    Does any one have any suggestions of products which offer a better fee then this?

    I understood the ETF's are more cost effective but I am having a hard time finding these on the H&L website

    Thanks all for your advice on this

    For what its worth I am very grateful to the people who post on this forum - Theres a tom of useful info on here
  • dunstonh
    dunstonh Posts: 116,548 Forumite
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    HLs sipp is really priced at being a fund supermarket pension. ETFs are more cost efficient for trackers but you will probably find HL is not cost efficient in holding the ETF. Sippdeal or similar will probably come in cheaper for you.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • stevetodd
    stevetodd Posts: 1,016 Forumite
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    ChloeRadshaw wrote: »
    I m looking for a FTSE100 tracker product that I can invest in :(

    So far on Hargreaves and Lansdowne I have only see FTSE100 trackers that charge a 1% annual charge which I think is quite significant

    Does any one have any suggestions of products which offer a better fee then this?

    I understood the ETF's are more cost effective but I am having a hard time finding these on the H&L website

    Thanks all for your advice on this

    Have you considered tracking the FTSE Allshare instead Fidelity only charge 0.1% for this. I do currently (unfortunately) track the FTSE 100 with Halifax as soon as the market stabilises I am going to switch most or all of this into Fidelity's allshare tracker. I was pointed in this direction by someone who pointed out that the FTSE 100 is not very diverse and after looking into it I fully agree with him, also with the allshare you are of course also investing in the top 100 companies along with the others.

    EDIT: sorry just realized that this thread was in the pensions section so the product I mentioned is probably not suitable for you?
  • ChloeRadshaw
    ChloeRadshaw Posts: 137 Forumite
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    I should have said that I am looking to hold this outside of a pension and as an investment so H&L Sipp is not very important to me.

    I could go via the Allshare but I quite like the idea of tracking just the FTSE100 for now and would like to find an efficent way of doing this if possible?
  • jamesd
    jamesd Posts: 26,103 Forumite
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    What sort of lump sum or monthly contribution do you have in mind?

    You should really be considering broader diversification than just the FTSE100. At least something like a 20-20-60 FTSE 100, UK equity income, global growth split so you're not getting only the results of the FTSE but get some global diversification as well.
  • nollag2006
    nollag2006 Posts: 2,638 Forumite
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    I'd be interested in the answer to this. Can anyone recommend a decent FTSE 100 trakcer?
  • dunstonh
    dunstonh Posts: 116,548 Forumite
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    nollag2006 wrote: »
    I'd be interested in the answer to this. Can anyone recommend a decent FTSE 100 trakcer?

    Why not just buy shares in the biggest five companies and be dont worry about the rest. That will be cheaper and just as diversified. (or not as the case is but thats what you get if you track the FTSE100)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • david78
    david78 Posts: 1,654 Forumite
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    Tracking an index can only give you average performance (by definition). Why not invest in funds that are likely to outperform the index (even allowing for management charges). If you really want to invest in a tracker outside a SIPP look at Fundsnetwork and the Fidelity tracker.
  • n209385
    n209385 Posts: 2 Newbie
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    Hi all - I too am looking for a FTSE 100 tracker.

    In answer to your question Chloe - the Legal & General UK 100 Index Trust has a 0.75% annual fee and a 0.09% extra expense...so 0.84% in total.

    Does anyone else know of a fund with lower charges?

    At the risk of being rude I'm not after investment advice...my portfolio is alreay structured how I want it...and I am after a FTSE 100 tracker.

    In response to the idea that you:
    "Why not invest in funds that are likely to outperform the index"
    Because 70% to 80% of managed funds underperform the index...no matter what they tell you.

    cheers

    Julian
  • dunstonh
    dunstonh Posts: 116,548 Forumite
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    Because 70% to 80% of managed funds underperform the index...no matter what they tell you.
    Looks like someone has fallen for the myth of trackers. over 90% of the funds have outperformed the FTSE100 trackers over the last 15 years. So, you saying 70-80% have underperformed is not correct and not based in fact.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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