Fidelity Index trackers

Azza_1

Sorry was typing on my phone so probably worded that last post badly. I mean if you would rather allocate region % yourself than have what is set in the Vanguard global ex-uk, then maybe go for the Blackrock index funds initially.

Surreyboy

I was looking at the Vanguard global ETFs and they seems to have a massive tracking error, or am I missing something?

For example, the Vanguard FTSE All-World ETF (the GBP denominated version) has increased by 6.7%, whereas the index went up by 24.2%. I assume it would be the GBP version that UK investors would normally use?

The same applies to the Vanguard FTSe Allworld High Dividend yield fund.

I would be grateful if some one could let me know if I'm missing something. I thought Vanguard had a good reputation for tracking error.
I'm getting very confused!

Thanks!

masonic

Dividends?

Surreyboy

Eh? I don't think so. I don't think the index includes dividends, esp the Ftse all world. Also, I don't quite understand why the USD version hugs the index much more closely.

masonic

Surreyboy wrote: »

Eh? I don't think so. I don't think the index includes dividends, esp the Ftse all world. Also, I don't quite understand why the USD version hugs the index much more closely.

When I plot them inclusive of dividends I don't see much difference between them. For example: http://www.trustnet.com/Tools/Charting.aspx?typeCode=E_FG1XC,NAWORLDS

masonic

Just a thought, but you are comparing the fund in GBP to the index in USD and not comparing GBP with USD? That would certainly give some strange results due to exchange rate fluctuations.

Edit: Then again, maybe not, the USD version looks almost identical, except it lags the index by ever so slightly more: http://www.trustnet.com/Tools/Charting.aspx?typeCode=E_FG2HB,NAWORLDS

Surreyboy

I can't see the GBP version on that link, but when I looked on the trustnet site earlier, the USD version 'hugged' the index and the GBP version was miles below the index.

masonic

Surreyboy wrote: »

I can't see the GBP version on that link, but when I looked on the trustnet site earlier, the USD version 'hugged' the index and the GBP version was miles below the index.

The first link I posted was GBP vs index and the second was USD vs same index, but if you want all three on the same graph it's quite easy to do. I'm not sure why you are seeing big differences between them. I tried a few different things and couldn't reproduce what you described.

Azza_1

I can't see which index you have compared it to, to have 24.2% for 1 year either.

ChesterDog

I'm confused about why there ISN'T substantial variance between the $ & £ versions.