Vanguard Trackers not Tracking

masonic

RetiredInThailand wrote: »

I'm aware of that, as I mentioned. What I was not aware of is that the total amounted to 4% of the value of the entire FTSE 100.

Well that quarterly dividend payment would have included normal dividends accrued during the previous quarter as well, so perhaps the VOD contribution was more like 2-3%? It was a 6:11 split of one of the biggest constituents of the FTSE100 (it made up ~5-6% of the FTSE 100 pre-split), so it isn't too surprising it would have an effect of this magnitude.

westy22

So, overall, are we saying that we are satisfied that VUKE is doing what it says on the tin and that it is broadly in line with the FTSE 100 Index ignoring the 4% return of capital in March?

masonic

westy22 wrote: »

So, overall, are we saying that we are satisfied that VUKE is doing what it says on the tin and that it is broadly in line with the FTSE 100 Index ignoring the 4% return of capital in March?

Well I hold it and I have no reservations about its performance.

RetiredInThailand

masonic wrote: »

I must admit, the one big drawback of these Vanguard ETFs is that dividends are paid out. I'd love to see an 'Acc' version like the fund you mention in which dividends are automatically reinvested.

Not Vanguard, but very similar:

http://www.ishares.com/uk/institutional/en/products/253716/ishares-ftse-100-ucits-etf-acc-fund

masonic

RetiredInThailand wrote: »

Not Vanguard, but very similar:

http://www.ishares.com/uk/institutional/en/products/253716/ishares-ftse-100-ucits-etf-acc-fund

Thanks, I had seen that one mentioned somewhere before, but I'd assumed the charges were higher. 0.1% is pretty respectable, so well worth considering next time I'm making changes to my portfolio.

Edit: Although 3 year performance data for that iShares ETF shows about 2.5% underperformance, with average annual underperformance over the past 4 years of 0.46%. Unless the charges have been reduced very recently from around 0.4%, that's an unacceptable tracking error.

RetiredInThailand

masonic wrote: »

Edit: Although 3 year performance data for that iShares ETF shows about 2.5% underperformance, with average annual underperformance over the past 4 years of 0.46%. Unless the charges have been reduced very recently from around 0.4%, that's an unacceptable tracking error.

I think that they have indeed been reduced from a much higher level.