Buying One of Every Share on the FTSE.

Tim_L

Spreadbetting is no more intrinsically risky than any other form of trading in stocks and shares. I agree that it's not for newbies, but by the same token neither is day trading, or odd ideas such as buying single shares in every company.

And given that you can set up an investment that behaves precisely like a tracker, but whose returns are tax free without having to worry about annual ISA limits (so you can trade in and out more easily); and you can earn interest at savings rates on your underlying capital, it's arguable that spreadbetting provides a better means of tapping into stockmarket growth than unit trusts or trackers.

moneysavingobsessive

I thought tracker funds have marginal room for discretion? If you are using an investment trust then it is almost impossible for it to be perfectly representative of the index that it is tracking? Hence why there are so many FTSE 100 tracker funds around.

I agree that it's different if you buy a bond or use spreadbetting, which should track perfectly...

Or if I am getting confused, someone please explain!!