Which S&S ISA provider - Low cost trackers

saveonarola

There's one thing I don't understand about performance charts. If you chart a tracker against its index, it should get further and further away over time because of the fees (and the compounding effect of the fees), but if you plot the HSBC FTSE All-Share tracker against the FTSE All-Share index over five years on HL's tool, it shows the fund lagging the index by a more or less consistent amount over time. Which seems to be the case with all the charts I've seen. Presumably they have some sort of re-basing calculation to strip out the cumulative drag of the fees, but this seems slightly misleading to me. Or am I missing something?

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-share-index-inst-accumulation/charts

(I added the index to the chart but the link doesn't 'save' this, so you have to add it again. But I'm sure you know what I mean, anyway.)

westy22

it shows the fund lagging the index by a more or less consistent amount over time

Lagging the Index? - outperforming the Index, surely? The divergence seems to occur from mid 2009 which is when HSBC reduced their AMCs dramatically. Could be a coincidence but that's how I read it.

JamesU

Guess I need to improve my MK1 glasses then, looking at HL data from FE by total return (not prices)...........



JamesU

saveonarola

On closer inspection, you're right - the gap does grows over time. Clearly your glasses are better than mine!

gadgetmind wrote: »

HSBC All-Share Index Fund.

1 yr, HSBC=6.7%, FTSE=7.3%
3yrs, HSBC=5.9%, FTSE=8.5%
5yrs, HSBC=6%, FTSE=10.7%

Having said that, it still doesn't look like a 4.7% gap.