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Typical Spread on Vanguard FTSE 100 ETF

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  • coastline
    coastline Posts: 1,662 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    JamesU wrote: »
    Ah, did not look carefully enough to see the charts were from 2005, looked more at region of ex-div date, same principle though. Maybe need to remember to differentiate between tracking error and spread though, as the latter can vary a lot with trading volumes and general liquidity.

    On UKX index, the newcomer VUKE is definitely one to watch out for on %ter=0.1% for any longer term asset allocation, provided future tracking is suitable, much better than ISF on %ter=0.4%. Both have the added merit of physical replication, though difficult to establish exactly what may be "on loan". Surprisingly, despite being synthetic both L100 and XUKX (Lyxor and Deutsche Bank db-x tracker) usually trade with a spread in the 0.025-0.05% region which, given their inherent counterparty risk, makes them a dubious trade relative to the physically replicated ISF.

    JamesU

    Just to show the latest dividend of 4p...August 22nd...

    graph.cgi?code=letf:cotn:ISF.L&monthsback=3&linetype=line&width=500&height=400&code=li:cotn:UKX.L&rebase=on&linetype=line&buylines=on&triggers=on&
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