FTSE 100 Vs FTSE all shares tracker.. and an ETF - advice please

fimonkey

Dr Eye, WHat made you choose the L&G tracker and where do you now hold it (i.e. in an ISA? with who?)

Thanks

Zebra

fimonkey wrote: »

What do you mean by that and how do I know whether H&L are going to charge trail commission or not? Or do they cahrge it on ALL their trackers?

Look on the H-L website and it will show you the TER for each fund.

For example
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/fidelity-moneybuilder-uk-index-accumulation
The Fidelity fund has a TER of 0.27% but if you look at Note 1 at the bottom - an additional charge of 0.5% is added.

Whereas HSBC has a TER of 0.27% also but without the additional 0.5%
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-global-asset-management-uk-ltd-ftse-all-share-index-inst-accumulation

fimonkey wrote: »

Dr Eye, WHat made you choose the L&G tracker and where do you now hold it (i.e. in an ISA? with who?)

Thanks

Quidco offer £50 cashback for a L&G ISA.

Dr_Eye

fimonkey wrote: »

Dr Eye, WHat made you choose the L&G tracker and where do you now hold it (i.e. in an ISA? with who?)

Thanks

Hi,

I choose L&G because of the low annual charges (at the time 0.5 percent). To be fair the charges were very similar with most companies bar a couple, virign for example were charging nearly double at the time.

I still hold it with L&G and it remains wrapped in an ISA. I have no intention of changing either unless L&G decide to massively up their charges.

Dave

fimonkey

Thanks All.

1. From the L&G website there is one FTSE all shares tracker (i'm presuming the UK index is an all shares tracker??) http://www.legalandgeneral.com/investments/isas/index-tracking-isa/the-charges.html with a TER of 0.55%


2. From the love money website http://www.lovemoney.com/news/grow-your-wealth/index-trackers/top-10-index-trackers-4670.aspx the L&G tracker returned 36.3% growth over 5 years whereas the HSBC returned 54.9%,... is it therefore better to go for HSBC and if so whom should I buy it through? (I googled it and it appears to be available through trustnet, h&l and HSBS, which is the best in terms of lowest fees? I want to hold it in an ISA. I'm presuming the HSBC performed better as it had a closer tracking to the FTSE?

Hope all that makes sense, you've all been so helpful I really appreciate it,.

Cheers

Rollinghome

That chart was compiled in March so is now out of date and the HSBC fund it shows is the HSBC FTSE 250 Index so doesn't track the all-share.

The to date figures over the last 5 years for the L&G UK Index Retail Acc is +25.81% and for the HSBC FTSE All Share Index Retail Acc +24.93%. That reflects the fact that until 8 months ago the HSBC funds had higher charges. You should obviously make your decision on current charges. Free of all charges the FTSE all share would have returned 28.66%. The Halifax fund shows a return above the index so presumably isn't a true tracker.

You could buy either through H-L or buy the L&G fund direct and benefit from instant dealing and the Quidco cashback. It reallly depends on your future plans. You could buy also direct from L&G and then transfer your account to H-L free of charge at a later date. Based on the TERs the HSBC looks likely to have a slightly higher return over time.

fimonkey

Rollinghome,.. thanks for the reply - I'm following what you say, though don't H&L also charge 0.5% in which case holding it with them in an ISA actually increases the TER? (as another poster has already referred to in this thread)?

Also you refer to the L&G UK Index Retail Acc whereas I'm looking at FTSE all share trackers. Am I missing something or are they the same?

My final thought is to begin putting £100pm in an all shares tracker beginning this month, so I need to get this sorted... I am thinking of holding it with L&G and it's likely to be the HSBC one. My plan is to keep putting £100pm into there unitl I need the cash (whenever that may be, certainly not in the next year or two).

I've dumped the idea of putting an initial £1K into this tracker and I'm putting that into the NS&I inflatin linked product instead (the one which has caused controversy over Martin Lewis claiming it gives 7.9% interest).

Anyone got anything more to add before I go ahead please?

Rollinghome

fimonkey wrote: »

Rollinghome,.. thanks for the reply - I'm following what you say, though don't H&L also charge 0.5% in which case holding it with them in an ISA actually increases the TER? (as another poster has already referred to in this thread)?

Also you refer to the L&G UK Index Retail Acc whereas I'm looking at FTSE all share trackers. Am I missing something or are they the same?

My final thought is to begin putting £100pm in an all shares tracker beginning this month, so I need to get this sorted... I am thinking of holding it with L&G and it's likely to be the HSBC one. My plan is to keep putting £100pm into there unitl I need the cash (whenever that may be, certainly not in the next year or two).

I've dumped the idea of putting an initial £1K into this tracker and I'm putting that into the NS&I inflatin linked product instead (the one which has caused controversy over Martin Lewis claiming it gives 7.9% interest).

Anyone got anything more to add before I go ahead please?

No, H-L charge an extra 0.5% on some funds but not on those HSBC or L&G funds. On most funds they give a very small part of their annual commisssion back as a 'loyalty bonus' - but not those. For specifics you need to read the details on their site for each fund including the footnotes.

You should pay exactly the same buying the L&G through H-L or directly from L&G but buying directly you should have the opportunity for better timing if you want that and the Quidco rebate. Buying directly you'll be able to buy over the phone just minutes before the valuation point. With H-L you have to order before markets open. You'll need to check out the terms for monthly contribution schemes.

The L&G UK Index Retail is their All-share tracker.