Best index tracking ISA?

Vagabond3

I've always just stuck to cash ISAs in the past, but I'm thinking now might be a good time to get stuck into stocks and shares with the market so low. I'll probably go for an index tracker rather than rely on a fund manager to make investment decisions for me. Does anyone know which index tracker ISA has the best track record (no joke intended) over the past few years?

I've also invested £3,600 in a cash ISA already this tax year (08/09). Can I still invest £3,600 in a shares ISA for 08/09 to bring me up to my £7,200 limit?

Thanks,

:cool:

Lokolo

You can invest £3,600 yes. Then in April you can invest another £7200, minus any money you want in cash ISA.

Index trackers don't really have a best performance because they all do the same thing, track the index, so differences between them are minor at best.

Vagabond3

OK, thanks. With that in mind, which stocks and shares ISA (non-tracker) has had the best performance in recent years?

:cool:

Lokolo

I have no idea, there are thousands of funds out there.

Also past performance isn't a guide to future performance....

dunstonh

which stocks and shares ISA (non-tracker) has had the best performance in recent years?

Why would you want to put all your money in a fund with that criteria?

The next 5-15 years are not going to be anything like that last 5-15 years.

turbobob

Heres a little list here of current top performers over 1, 3 and 5 years.

1 Year
1 Neptune Japan Opportunities 62.2%
2 M&G International Sovereign Bond 44.2%
3 Scot Wid Overseas Fixed Interest 42.5%
4 SWIP Global Bond Plus 39.6%
5 Threadneedle Global Bond 38.3%

3 Years
1 M&G International Sovereign Bond 53.8%
2 Scot Wid Overseas Fixed Interest 51.3%
3 SG International Bond 46.3%
4 Threadneedle Global Bond 45.5%
5 Schroder International Bond 43.6%

5 Years
1 CF Ruffer European 127.3%
2 Scot Wid Latin American 121.0%
3 Threadneedle Latin American 108.6%
4 BlackRock Gold & General 106.0%
5 Neptune Japan Opportunities 104.1%

I'm just posting this to directly answer your question and to help get you started. As said above, past performance is not a guide to future performance. Its not just something they have to put in adverts to satisfy the FSA - its the truth. Don't make the mistake of choosing something out of a top performance table without knowing why you are investing in it.

It should be noted that with one fluky exception (Neptune Japan), all of the top performers over 1 and 3 years are currently global bond funds. That is a reflection of where we are now following the equity crash. High quality sovereign bonds have soared as shares have crashed... But will they be top performers in a few years time??

john_s_2

I'm in the same position as you, OP. I've already posted on this board so don't want to carry on my debate.

But to add to the warnings about "past performance", I bought myself Investing for Dummies, as a way in to this mysterious world.

There was an interesting comment that repeated academic research has shown there is no link between past good performance, and future good performance.

However, there is a very slight link between past bad performance and future bad performance. But even this was flimsy.

Vagabond3

OK. thanks for the replies.

:cool:

max11

Vagabond3 wrote: »

OK, thanks. With that in mind, which stocks and shares ISA (non-tracker) has had the best performance in recent years?

:cool:

Hi. The question would be: which index tracker will have the best performance in the following year?

Vagabond3

Now, if anyone could give me that answer, I'd be very interested!

:cool:

max11

me too to be honest!:o

Uk? Japan? US? Europe? Asia?