Drip feeding index trackers.

HJC1972

I'm interested in drip feeding an index tracker. Either US or UK, or perhaps even emerging markets. Thinking of about £150 - £ 200 per month. Any ideas one what I should be looking for? Don't want to get hit too hard on fees etc. Also, can I wrap up such an investment within my yearly isa allowance?

Any thoughts on providers etc.?

Thanks in advance

coastline

A good site for passive investing...have a look around.

http://monevator.com/category/investing/passive-investing-investing/

jimjames

You certainly can put them into an ISA. Just watch out for ones that charge a fixed monthly fee which will eat into your investment for the first few years.

One of the cheapest is Cavendish Online. HL are one that charge £2 per month per tracker so work out expensive unless you have a very large portfolio.

The_Accumulator

Have a look at the HSBC FTSE All-Share index fund. Or for the US, the HSBC American index fund. Cavendish Online is a good call for the broker.

dunstonh

Vanguard is generally considered to offer the best trackers.
Blackrock Class D trackers are also very good
HSBC comes behind them.

HJC1972

Thanks for the replies. Just looking around, most of the funds on Cavendish seem to have minimum opening investments of £1000.00. Most of my money is currently tied up un long term bonds so I'd prefer to use just £500 for starters and I see that Fidelity Moneybuilder have a new US index tracker within the Moneybuilder range. There's scant info, even on the Fidelity site; the fund launched only two days ago. Given that there are so few funds that seem to have smaller opening investments I'm considering this New Fidelity fund but as I'm rather green when it comes to fund investments I'm just wondering if I should hold out untill such time as I have the £1000 I need for a wider range of choice.

Your thought appreciated.

Thanks again for the replies.

SnowMan

HJC1972 wrote: »

I see that Fidelity Moneybuilder have a new US index tracker within the Moneybuilder range. There's scant info, even on the Fidelity site; the fund launched only two days ago.

Good spot. Details of the Fidelity Moneybuilder US Index Fund A tracker which tracks the S&P 500 index are here. TER is 0.3%

Looks like competition for the HSBC American Index tracker which has an OCF (which is broadly equivalent to TER) of 0.3% also.

Rollinghome

HJC1972 wrote: »

TI see that Fidelity Moneybuilder have a new US index tracker within the Moneybuilder range. There's scant info, even on the Fidelity site.

Always slightly tricky with no track record. Remember that charges are important but not the only consideration. Not all trackers use the same methodology and so you also need to look at tracking error and returns.

The Fidelity Moneybuilder UK Index looks at first sight to be a reasonable option with a an AMC of just 0.10% and TER of 0.30% compared with the HSBC version's AMC 0.25%/TER 0.28%. Both track the FTSE all share.

But the HSBC tracker has consistently had a relatively better return than the TERs might suggest, currently 8.07% over the last 5 years compared with 6.49% from the Fidelity fund.

The Fidelity fund also does less well than the L&G all share tracker which still returned 7.79% over 5 years despite a stated TER of 0.56% - and you could get a 0.25% pa rebate on that via Cavendish which might even put it ahead of HSBC.

black_taxi_2

Vanguard

us tracker .20%

TD direct

No isa amc for funds over £5100

bigfreddiel

black_taxi wrote: »

Vanguard

us tracker .20%

TD direct

No isa amc for funds over £5100

i second that, and if you go own the etf route there's no stamp duty and if you go for a regular investment isa account dealing is only £1.50

Totton

Or possibly take a look at the Vanguard Life Strategy funds, I went for the 40% equity version and it has done well for me. It is a cost effective way of holding a variety of trackers in one holding if fees are a problem.