Best FTSE Tracker Fund

windstate

Hi, I'm looking for a FTSE tracker fund in which to invest. However, I am finding it hard to locate many from which to choose from.

I had previously seen one for the FTSE 100 by Natwest but can no longer find it on their website. It had a zero initial charge and an annual charge of around 0.5%.

Santander also do one but the annual charge is around 1%, which I feel is too much for a simple tracker.

The best I have found so far is the Fidelity Moneybuilder UK Index. Has a zero initial charge and 0.1% annual management charge. However this tracks the FTSE All Share Index (750 companies). I am more interested in a FTSE 100 tracker.

Has anyone come across a better tracker? Any alternatives? Links to websites would be great.

Calchas

Here is something to have a look at until the more informed come along, windstate:

http://lt.morningstar.com/z6k3gp19vg/snapshotpdf/default.aspx?SecurityToken=F0GBR0602H]2]1]FOGBR$$ONS_164

I seem to remember that Fidelity are often mentioned when Ftse 100 trackers are discussed.

:beer:

Calchas

This may also be of interest:

https://www.fidelity.co.uk/investor/research-funds/fund-supermarket/factsheet/summary.page?idtype=ISIN&fundid=GB0005756274&UseProxy=Yes&fundname=F%26C FTSE 100 Tracker Fd 1 Acc

sabretoothtigger

Do the all share rather then the 100, due to weighting its very similar but slightly better diversified

Aegis

Why are you more interested in the FTSE100 than the FTSE AllShare?

sabretoothtigger

Heres a pic of how the fund would be invested by the size of the company. This is the Ftse 100 which obviously has the largest companies and you can see how most of your money would go to hsbc and bp, etc

If you had an all share, it would still mostly go to the big guns listed here, as you can see the smaller companies (sl. = standard life lgen = legal and general) really dont add upto much in terms of funding allocated.

So in conclusion, go for the all share if you found one that cheap as its still going to put most money into the big boxes shown here just the same as a ftse100 fund

dunstonh

I am more interested in a FTSE 100 tracker.

FTSE 100 trackers have spent most of the last 15 years amongst the worst performing funds in the sector. Its such a limited index and not that desirable to invest in. So, why do you want to invest in such a poor way?

k8r4u

You could look at an index-tracking ETF such as the iShares FTSE-100 (LSE:ISF) or iShares FTSE-250 (LSE:MIDD). Other trad.trackers include the M&G Index Tracker (LSE:MGITI) which tracks the All-Share.

TobyB_2

Reading around here and elsewhere I found advice +++ for and against trackers ... in the end decided to spread a monthly investment plan, half of it in an all-share tracker and half of it in 3 regularly-quoted/recomended "market leading" managed funds ... so far (9 months) the all-share is up 9.5%, while the others are 1.5-5% up ... in the short term "active management" hasn't helped a bit, and costs more ... maybe in 2, 5 or 10 years I'll have a different view though ...

Calchas

Crystal Balls!

They are what we all need and what none of us possess.

Rollinghome

There was a discussion on trackers a couple of days ago.

Companies in the FTSE 100 will tend to be international companies with internationally traded shares and so closely tied to the global economy. The all-share index will include more companies dependent on the UK enonomy.

FTSE 100 has slightly trailed the all-share in recent years, but that isn't to say you couldn't be right and we see it go the other way for a while. As well as having trailed the all-share, many managers make slightly higher charges for their FTSE100 trackers. So unless you feel the FTSE 100 is due for a good run, an all-share index tracker would generally be the recommended option.

The all-share tracker that has most closely tracked the index seems to be the F&C FTSE All Share Tracker 1 with a better return than the Fidelity fund despite the slightly higher charges. Look both for tracking accuracy and the TER - the total expenses ratio.

Figures from Trustnet for 1, 3 and 5 years:
F&C FTSE All Share Tracker 1 -19.1 -10.8 +21.1
Fidelity Moneybuilder UK Index -19.8 -11.6 +19.6
Average for all unit trusts in the UK All Companies sector -20.8 -13.8 +17.0

See http://www.trustnet.com/Investments/Perf.aspx?univ=U&Pf_AssetClass=A:&Pf_Sector=U:UG&Pf_sortedColumn=Performance

The net cost of funds may also depend on whether you hold them inside or outside of an ISA. For some there will be an extra charge, others not.