Dow Tracker

Large

Hi
Im new to investing and have already set up a S&S ISA with H L drip feeding £100 per month into HSBC FTSE all shares tracker and I'm wondering if anyone can recommend a good tracker for US shares? Im still in the early days of research and Im looking at the HSBC American Index Accumulation Units, is this a tracker?
Thanks in anticipation

turbobob

Large wrote: »

is this a tracker?

Yes it is. Here is the factsheet for it - http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/Documents.aspx?type=packet_fund_class_doc_factsheet_private&user=hl_web_test&sedol=0046974

It tracks the S&P500 which is a large cap index with 500 constituents (broader than the Dow industrial average). The S&P 500 is probably a good index to go for if you want exposure to a broad range of large US companies.

Large

Thanks Turbobob, very helpful as ever

mr_fishbulb

Yeah I'd give the DOW a wide birth as a tracker. If you look into the way it is comprised then it is an awful index.

For a start it is made up for just 30 stocks. And it is not weighted by market capital (like the FTSE 100), but by the price of the stock. For example a share which is priced at $7 will have more of an affect on the whole index when it changes price than a share priced at $4. How crazy is that?!

sabretoothtigger

Theres an index for the whole nyse stock board, which is 9000 stocks. Ive never heard of a tracker for it though

Also theres the Russell 2000 (small cap usa)

If tracking america I think their tech stocks are bes - if usa recovers then great, if they dont then these will be great exporters still as they hold unique capabilities
So my american play is a global tech index which contains 72% usa and other developed countries.

LG does a tracker and probably others, its listed as high risk because its just one sector but dow 30 has to be high risk also like fish says


Theres alot of similarities between the two, I marked the big dow tech stocks