Cheapest FTSE All share Tracker

madeinchina

Back to the charges:

On funds such a trackers or managed; at what point is the TER charge removed?

Do the charts of unit price/value over time, account for the TER being taken off the price of the unit?

Aegis

madeinchina wrote: »

Back to the charges:

On funds such a trackers or managed; at what point is the TER charge removed?

Do the charts of unit price/value over time, account for the TER being taken off the price of the unit?

The annual fee is deducted at a rate of 1/365 of the charge per day to ensure that all investors are treated fairly.

The TER is already factored in when you see the performance tables.

max11

thank you turbobob and sabretooth.
I tried ti understand what are ETF and reverse ESTF

On wikipedia
"There are a numbers of scenarios where a long-term investor could benefit from short or inverse ETFs. Investors trapped in a long position during a prolonged bear market might want to reduce their losses by using a short or inverse ETF. Another instance might be where a long-term investor has a large paper gain but doesn't want to pay taxes. Rather than watch a market decline eat away at the value of the investor's portfolio, selling short a market-tracking ETF, or purchasing an inverse or short ETF would help reduce losses.I][URL="http://en.wikipedia.org/wiki/Wikipedia:No_original_research"]original research?[/URL][/I"

while Sabre in an old post:
"Your idea of put the money in now and take it out in a year when alls well is overly simple. I think its a better idea to gradually put the money in via standing order, you could still be making a mistake but at least it would give you time to realise it
ETf is for day traders and people who really want to buy the price that minute which it doesnt sound like you do"

I'm quite confused, and have to say, because of my jobs, I won't have a lot of time to follow markets etc, (even if I'm trying to wide my knowledge) so that is why I was about to buy just simple index tracker

H-L allows me to open an cash ISA account but I will have to choose the funds in _exactly_ 3 months, nor before neither later...so no flexibility.
The question is: will the markets lower than now in exactly 3 months?

thanks

tradetime

max11 wrote: »

thank you turbobob and sabretooth.
I tried ti understand what are ETF and reverse ESTF

On wikipedia
"There are a numbers of scenarios where a long-term investor could benefit from short or inverse ETFs. Investors trapped in a long position during a prolonged bear market might want to reduce their losses by using a short or inverse ETF. Another instance might be where a long-term investor has a large paper gain but doesn't want to pay taxes. Rather than watch a market decline eat away at the value of the investor's portfolio, selling short a market-tracking ETF, or purchasing an inverse or short ETF would help reduce losses.I][URL="http://en.wikipedia.org/wiki/Wikipedia:No_original_research"]original research?[/URL][/I"

while Sabre in an old post:
"Your idea of put the money in now and take it out in a year when alls well is overly simple. I think its a better idea to gradually put the money in via standing order, you could still be making a mistake but at least it would give you time to realise it
ETf is for day traders and people who really want to buy the price that minute which it doesnt sound like you do"

I'm quite confused, and have to say, because of my jobs, I won't have a lot of time to follow markets etc, (even if I'm trying to wide my knowledge) so that is why I was about to buy just simple index tracker

H-L allows me to open an cash ISA account but I will have to choose the funds in _exactly_ 3 months, nor before neither later...so no flexibility.
The question is: will the markets lower than now in exactly 3 months?

thanks

An ETF or Exchange Traded Fund, is pretty much what its name says, a Fund that trades throughout the day on an exchange such as the LSE or NYSE, it can be bought and sold just like a stock. It usually tracks some sort of index, or commodity perhaps, and its purpose to to mirror the movements of that which it tracks. Thus something like the iShares FTSE100 owns the stocks in the FTSE 100 in the weightings they are afforded in the index, in terms of price in pennies it trades at about 1/10th the ftse figure, thus if the ftse rises by 10 points the fund price should increase by a penny.
An inverse ETF is a slightly different beast, they often use futures or swaps to simulate the rsults of being short the underlying index, I'm not entirely sure of the sometimes convoluted mechanics of some of these products, I would only recommend inverse ETF's for short periods of time as the objective of these funds is to replicate movement on a daily basis, and not actually over time, the more volatility in the market the less accurately these funds will track over time.

As to where the markets will be in exactly 3 months, if I or anyone knew that then they would likely be retiring in exactly 3 months I do believe this is likely to be one year when the "Sell in May and go away" phrase may prove to be wise advice, the economies of the world are still a mess, and that won't be fixed quickly, stocks are still relatively expensive here imho. best guess i can make is I have said elsewhere, we have not seen the bottom yet, there is more downside to come.

max11

tradetime wrote: »

An ETF or Exchange Traded Fund, is pretty much what its name says, a Fund that trades throughout the day on an exchange such as the LSE or NYSE, it can be bought and sold just like a stock. It usually tracks some sort of index, or commodity perhaps, and its purpose to to mirror the movements of that which it tracks. Thus something like the iShares FTSE100 owns the stocks in the FTSE 100 in the weightings they are afforded in the index, in terms of price in pennies it trades at about 1/10th the ftse figure, thus if the ftse rises by 10 points the fund price should increase by a penny.
An inverse ETF is a slightly different beast, they often use futures or swaps to simulate the rsults of being short the underlying index, I'm not entirely sure of the sometimes convoluted mechanics of some of these products, I would only recommend inverse ETF's for short periods of time as the objective of these funds is to replicate movement on a daily basis, and not actually over time, the more volatility in the market the less accurately these funds will track over time.

As to where the markets will be in exactly 3 months, if I or anyone knew that then they would likely be retiring in exactly 3 months I do believe this is likely to be one year when the "Sell in May and go away" phrase may prove to be wise advice, the economies of the world are still a mess, and that won't be fixed quickly, stocks are still relatively expensive here imho. best guess i can make is I have said elsewhere, we have not seen the bottom yet, there is more downside to come.

thank you for you clarity and patience with me!;)
so I will avoid the inverse ETf, and try to undrerstand and find more about the ETF.

Yes, of course none knows the future. It is diffcoult to say if in 3 months we will be still before or later the bottom, but maybe I can hope that markets will be lower than now, can't I.
If I can't, then it would be worth buying now.

tradetime

max11 wrote: »

thank you for you clarity and patience with me!;)
so I will avoid the inverse ETf, and try to undrerstand and find more about the ETF.

Yes, of course none knows the future. It is diffcoult to say if in 3 months we will be still before or later the bottom, but maybe I can hope that markets will be lower than now, can't I.
If I can't, then it would be worth buying now.

You're welcome, Inverse ETF's are predominantly for short term traders, you could conceivably use them over the longer term, but you'd need to be paying close attention to how they were performing.

As for the markets, depending on what you are buying there is no problem buying now, I have positions in the market now, I opened positions as recently as 10-12 days ago., and if you are putting money into some sort of managed fund, then I'm sure the manager is aware of the market conditions and will be positioning himself accordingly, all I would say to anyone is don't break your neck to go all in on this market, there will be plenty more opportunities to buy before this is over.

max11

tradetime wrote: »

You're welcome, Inverse ETF's are predominantly for short term traders, you could conceivably use them over the longer term, but you'd need to be paying close attention to how they were performing.

As for the markets, depending on what you are buying there is no problem buying now, I have positions in the market now, I opened positions as recently as 10-12 days ago., and if you are putting money into some sort of managed fund, then I'm sure the manager is aware of the market conditions and will be positioning himself accordingly, all I would say to anyone is don't break your neck to go all in on this market, there will be plenty more opportunities to buy before this is over.

No no thank you very much indeed, your advices are very precious
actually I'm going to buy only index tracker (UK all shares, US, europe, Pacific) within my ISA allowance (£3.600) as my markets knowledge doesn't allow me to find a fund with confidence.
Also from what you've said in the last post, going for the Fixed Rate Cash Offer should be more appropriate, waiting to choose the funds in exactly 3 months - maybe a managed one as well.

max11

turbobob wrote: »

Even if HL only allow minimum initial investments into each fund of £1000, you can still make switches with much lower amounts later on. For example, I recently switched about £400 from another fund into Blackrock's Gold & General. I didn't have any existing holdings in the Blackrock fund, but it went through with no problems.

So you could potentially invest £4000 across 4 funds and switch part of them into others as and when you want to.

Thank you all.
So, if I invest £3,000 now, I shoud be able to add £600 after a few days and destribuite the whole amount into 5 funds, shouldn't I?

If I open the holding account, I cannot do that. the only way should be to choose 3 funds and put £1.200 each one

max11

tradetime wrote: »

the economies of the world are still a mess, and that won't be fixed quickly, stocks are still relatively expensive here imho. best guess i can make is I have said elsewhere, we have not seen the bottom yet, there is more downside to come.

also after the US $1 trillion programme?

tradetime

max11 wrote: »

also after the US $1 trillion programme?

Well the rampant open printing of money does create a somewhat different dynamic, and I'd be lying if I told you I know where this is all going to lead us. What I do know is that it defies the normal principles of economics and free markets, now that they have embarked on this course of action they will have to, and I have little doubt now that they will, print more and more money and the general public, the middle classes who do not gain any benefit from this will become more and more dissatisfied. It certainly will not fix the global economy.