tracker fund in my sipp

savinggraciously

Hi,
This is my first post, so I hope I've put it in the right section.

With the current market volatility I'm thinking of putting some of my sipp into a UK tracker fund. The thing is the bank element of the FTSE100 makes me nervous. Does anyone know: are there any UK trackers out there excluding banks? If not, can anyone suggest a tracker? Thanks, SG.

dunstonh

The FTSE100 isnt a good index to track anyway.

are there any UK trackers out there excluding banks?

They wouldnt be trackers if they did that. You can increase the diversification by going all share or look at the mid caps.

CannySaver_2

Hi

Have to agreed with dunstonh.

A FTSE 100 tracker would not be a FTSE 100 tracker if it excluded banks (which do look pretty cheap at the moment). Your question does though reflect one of the problems with tracker funds i.e. you get the kitchen sink and everything thrown in there. If a share is tanking and will fall out of the FTSE 100 the next time the list is reviewed you will own it, it will be sold by the tracker when it falls off the list and you will buy a share, usually which has come from the FTSE 250 and usually which has been on a great run and increased in price significantly to get into the FTSE 100.

There are of course many arguments for Trackers, although I am not a fan of just putting money in a tracker and forgetting about it, active asset allocation is key.

Surely it is not down for us to be suggesting trackers, an investor should pick which market or markets they wish to track and then pick the tracker fund accordingly. Work out which indicies you think are under valued and then make your decision on the tracker.

The Canny Saver