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  • FIRST POST
    • ceblackshaw
    • By ceblackshaw 11th Jul 17, 9:02 AM
    • 13Posts
    • 0Thanks
    ceblackshaw
    Returns from Tracker funds and how to invest in them.
    • #1
    • 11th Jul 17, 9:02 AM
    Returns from Tracker funds and how to invest in them. 11th Jul 17 at 9:02 AM
    I am trying to work out the best was to invest in a tracker fund. Probably the Legal and General FTSE 100 Tracker.

    L&G charge .1%. But. Overall charges they quote are .82% (I assume trading etc is in here). Which reduces the overall return to 2.8%.

    I considered investing via Hargreave Lansdown as they reduce the fund charge to .06%. They quote a return on 3.5% - but I assume that is gross. The trading costs will be the same as they are still done by L&G so net return will be slightly above the 2.8% quoted by L&G.

    BUT. HL charge a platform fee of .45% so overall they will be much less than buying direct.

    Is my logic and understanding correct?
Page 2
    • schiff
    • By schiff 12th Jul 17, 11:10 AM
    • 17,522 Posts
    • 8,837 Thanks
    schiff
    The very latest from Monevator:

    http://monevator.com/low-cost-index-trackers/
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 11:32 AM
    • 6,883 Posts
    • 7,325 Thanks
    AnotherJoe
    Why not buy an Exchange Traded Fund (ETF) and avoid that?
    HSBC, Vanguard, Blackrock, all do FTSE100 ETFs with annual charges below 0.1% <----Noooooo !
    HSBC Euro 50 is only 0.05%
    Originally posted by Glen Clark
    Buy something like HMWO which is global and diversified across multiple sectors, unlike FTSE100.
    • Glen Clark
    • By Glen Clark 12th Jul 17, 2:02 PM
    • 3,740 Posts
    • 2,728 Thanks
    Glen Clark
    Buy something like HMWO which is global and diversified across multiple sectors, unlike FTSE100.
    Originally posted by AnotherJoe
    Yes I agree. But look at the original question.

    I am trying to work out the best was to invest in a tracker fund. Probably the Legal and General FTSE 100 Tracker.
    Originally posted by ceblackshaw
    If the OP wants to invest in the FTSE100 (and he may be right) I was just saying there are cheaper ways of doing it.
    For society to function well, people generally need to feel that they have a fair chance of success through their ability and efforts. The more entrenched hereditary elites we have, the less likely people are to feel that way
    • Glen Clark
    • By Glen Clark 12th Jul 17, 2:09 PM
    • 3,740 Posts
    • 2,728 Thanks
    Glen Clark
    Buy something like HMWO
    Originally posted by AnotherJoe
    at 0.15% its great value. I wonder why it isn't more popular (only £121m invested) https://markets.ft.com/data/etfs/tearsheet/summary?s=HMWO:LSE:GBX
    I can only guess HSBC were late in cutting their prices so all the money had already gone to the likes of ishares and Vanguard?
    For society to function well, people generally need to feel that they have a fair chance of success through their ability and efforts. The more entrenched hereditary elites we have, the less likely people are to feel that way
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 8:14 PM
    • 6,883 Posts
    • 7,325 Thanks
    AnotherJoe
    Yes I agree. But look at the original question.
    If the OP wants to invest in the FTSE100 (and he may be right) I was just saying there are cheaper ways of doing it.
    Originally posted by Glen Clark
    Don't encourage him!! It's like showing someone a cheaper way to stab themselves in the eye.
    • A_T
    • By A_T 12th Jul 17, 9:11 PM
    • 106 Posts
    • 38 Thanks
    A_T
    Why not buy an Exchange Traded Fund (ETF) and avoid that?
    HSBC, Vanguard, Blackrock, all do FTSE100 ETFs with annual charges below 0.1%
    HSBC Euro 50 is only 0.05%
    Originally posted by Glen Clark
    Where do you buy an ETF without incurring some kind of fee?
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 10:47 PM
    • 6,883 Posts
    • 7,325 Thanks
    AnotherJoe
    Where do you buy an ETF without incurring some kind of fee?
    Originally posted by A_T
    There are initial fees but low or no ongoing fees at some brokers. HL for example.
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