ETF FTSE Trackers

Paul_N_4

I currently have a self select share dealing ISA with iii . I would like to put some cash into an ETF FTSE Tracker but have a couple of questions.

1. Is there a website where I can compare trackers and their associated fees? If not, who are generally the cheapest for all type ETF FTSE trackers?

2. Will probably drip feed in over the next year. Are iii reasonably priced for this activity or will I find cheaper alternatives?

Rollinghome

Paul_N wrote: »

I currently have a self select share dealing ISA with iii . I would like to put some cash into an ETF FTSE Tracker but have a couple of questions.

1. Is there a website where I can compare trackers and their associated fees? If not, who are generally the cheapest for all type ETF FTSE trackers?

2. Will probably drip feed in over the next year. Are iii reasonably priced for this activity or will I find cheaper alternatives?

ETFs have dealing fees per transaction and, depending on the amounts you intend to drip-feed, you might find for a simple FTSE tracker that a UT tracker is more cost-effecive.

black_taxi_2

hsbc ftse all-share index fund institutional

A accumulation share

very low cost

hargreaves lansdown

http://www.h-l.co.uk/

from £50 a month

hugheskevi

1. Is there a website where I can compare trackers and their associated fees?

Ishares are very popular ETFs (although not necessarily the lowest fees) and it would probably be helpful to start looking at those as they have a good website which is very easy to navigate:

http://uk.ishares.com/en/rc/

After that, have a look at Trustnet:

http://www.trustnet.com/Investments/Perf.aspx?univ=E

You could also have a look around Bloomberg:

http://www.bloomberg.com/markets/etfs/index.html

2. Will probably drip feed in over the next year. Are iii reasonably priced for this activity or will I find cheaper alternatives?

That will be £10 per transaction, £120 p/a assuming 12 monthly contributions and no special offers. This is about as good as you are likely to find for transactions.

But if you are only investing relatively small amounts each month, that might represent quite a high initial cost. Remember to include the buy/sell offer prices when evaluating costs, this is likely to take off another 0.5% ish when you buy.

tradetime

If you are drip feeding on a monthly basis then there is no market timing issue, therefore for something like ISF you should be able to use iii's portfolio builder at £1.50 per purchase. Whether you can do this cheaper with something like a Unit trust, I have no idea.

sabretoothtigger

Unit trust would be slightly cheaper but an etf can be sold or bought at any time of the day

JamesU

Paul_N wrote: »

I currently have a self select share dealing ISA with iii . I would like to put some cash into an ETF FTSE Tracker but have a couple of questions.
1. Is there a website where I can compare trackers and their associated fees? If not, who are generally the cheapest for all type ETF FTSE trackers?
2. Will probably drip feed in over the next year. Are iii reasonably priced for this activity or will I find cheaper alternatives?

Choices FTSE all share, 250, 100, etc etc
Costs: HSBC, Vanguard, other in providers below etc etc
Providers: ishare, dbx-tracker, lyxor etc etc
Analysis: trustnet, morningstar etc etc

Lots of good MSE links and info FTSE etfs on posts in these:
https://forums.moneysavingexpert.com/discussion/comment/32662941#Comment_32662941
https://forums.moneysavingexpert.com/discussion/2463593
https://forums.moneysavingexpert.com/discussion/2433241

Lots of etf background info including some etf tracker options in these:
http://www.investorschronicle.co.uk/InvestmentGuides/ExchangeTradedFunds/article/20091127/a0c91b68-db4c-11de-9a24-00144f2af8e8/Build-your-portfolio-with-ETFs.jsp (note extra links on specific topics at bottom of article)
http://www.investorschronicle.co.uk/InvestmentGuides/ExchangeTradedFunds/article/20100322/b3058a12-3373-11df-93d5-0015171400aa/ETF-cost-and-risk-factors.jsp (some cost and risk factors)
http://www.investorschronicle.co.uk/InvestmentGuides/Funds/article/20090907/f69d9660-9888-11de-b2c2-0015171400aa/Constructing-an-ETF-portfolio.jsp (bit on construction)
http://www.investorschronicle.co.uk/Tips/default/TipsOfTheWeek/article/20080418/e553b59a-0d30-11dd-9279-0015171400aa/Ten-lazy-portfolios.jsp (interesting selection of exampe portfolios, but care with ultra cautious portfolio analysis: IGLT, INXG, SLXX all could be considered a bit iffy as ultra cautious right now)


JamesU

unsung

When people say unit trust, I presume they really mean oeic - buy price the same as sell; so if u buy a grand of tracker oeic u could sell for the same price (until the index changes of course)

And the other thing to look at is the charge to run the fund, maybe 0.5% for basic tracker more for more exotic trackers

I doubt whether etfs with their usual stock broker buy and sell charges would make them too attrctive in most circumstances. Etfs could be useful though to dabble in oil or gold price movements
dyor as always

Paul_N_4

Thanks for the replies.

I've decided to go for db FTSE 100 and FTSE 250 ETF trackers and HSBC for a standard FTSE all share tracker.

The ETFs will be lump sums in my ISA wrapper. Should be largely buy and hold, but like the idea of being able to pull funds out any time of day, as I watch the markets daily. Fees are 0.2% and 0.25% p/a.

The all share will be a weekly drip feed, with small sums, so standard HSBC fund will do for that. 0.25% fee.

sabretoothtigger

Good job, not that long ago people were paying 1% fee for a ftse tracker and I can remember exit fees as well so its all much better now

Considering all the selling at present, investing regularly seems well placed


FTSE actually track indexes all over the world not just uk or priced in pounds but I understand many people prefer that.

HSBC will charge about the same to track 5 different asian countries with separate currencies, I find that pretty good value for the diversified range.

http://www.ftse.com/Indices/FTSE_All_World_Index_Series/Downloads/FTSE_World_Asia_Pacific_Index_Factsheet.pdf

black_taxi_2

you would be better to just have FTSE all-share tracker in ISA wrapper--(more diversity)poundcost ave monthly into it----when mkt is low you get more shares--when mkt rises so does your investment.overtime with compounding and re-dividends your portfolio will grow nicely.

no point encurring extra fees FTSE 100 -FTSE 250--plus your just repeating your investment in same area.

http://uk.finance.yahoo.com/q/ta?t=1y&s=%5EFTAS&l=on&z=m&q=l&c=&c=%5EFTSE&c=%5EFTMC