Can anyone recommend a good, low cost FTSE tracker.

paul5046

For £100 a month saving plan.

Something simple and low cost. Basically i think over the next 5 years the FTSE will rise so i just want something to follow it.

dunstonh

If you are doing a regular at just £100pm then you need to think longer than 5 years. With just 5 years would be at risk of significant drops just as you are calling it a day.

Vanguard
Blackrock Class D
HSBC institutional

these are the best three typically.

jimjames

HSBC is available without additional charges in the HL Vantage ISA

paul5046

dunstonh wrote: »

If you are doing a regular at just £100pm then you need to think longer than 5 years. With just 5 years would be at risk of significant drops just as you are calling it a day.

Vanguard
Blackrock Class D
HSBC institutional

these are the best three typically.

Okay, longer than 5 years. Basically its an alternative to the present low interest rates for cash.

HSBC, i prefer companies i know.

Is my logic correct in saying just go for the lowest charges.

masonic

paul5046 wrote: »

Is my logic correct in saying just go for the lowest charges.

It never hurts to check the tracker is doing what it says on the tin by comparing its past performance to that of the index and equivalent tracker funds.

crittertog

paul5046 wrote: »

Is my logic correct in saying just go for the lowest charges.

Charges and tracking error (i.e. the amount it was out by, when comparing its performance to that of the index it's tracking)

edinburgher

Vanguard

Are Vanguard available at £100/mth? I was sure I read that they were only open to those with a lot more to invest (perhaps I'm confusing 'open to' and 'cost effective')

westy22

Are Vanguard available at £100/mth? I was sure I read that they were only open to those with a lot more to invest

Generally, Vanguard is for investments of £100k plus, but Alliance Trust waive this minimum requirement and you can buy on a monthly subscription. I think they are the only provider in the UK to do this.

wriggly

edinburgher wrote: »

Are Vanguard available at £100/mth? I was sure I read that they were only open to those with a lot more to invest (perhaps I'm confusing 'open to' and 'cost effective')

£100/month into Vanguard UK Index through the ATS platform would cost £18 in transaction fees + £6 UK stamp duty = £24/year (plus, in an ISA, £30/year account-keeping fee). For that, you get 0.15% TER.

I don't know the fees on the other platforms, but I would guess for this amount, most other platforms would be cheaper, even using funds charging a TER of ~0.3%.

Of course, it depends how long you're planning to add the £100/month and how long you're planning to keep it in the ISA.

dunstonh

HSBC, i prefer companies i know.

Of the three listed, it is the most expensive. The other two are very big players. When looking at investments, you need to get used to different brand names.

Generally, Vanguard is for investments of £100k plus, but Alliance Trust waive this minimum requirement and you can buy on a monthly subscription. I think they are the only provider in the UK to do this.

Most of the unbundled platforms offer it without minimums. However, at £100pm with no existing investments, an unbundled platform is not going to be cost effective. Going with HSBC on HL is likely to be the best option. Although, that is on its last legs as bundled platforms will have to move to unbundled. You would still get a couple of years out of it though.

paul5046

Thanks so far.