Good low-cost/cheap price ETFs

Luke_Marciniak

Hi,

As most popular ETFs (and even some less popular ones) seem to be priced at around £100/share a more, can anybody recommend a low-cost, cheaply priced ETF (for any particular sector or geographical region although I'm looking for a S&P 500 type tracker fund if possible)

Thanks

coyrls

What is it about the price that is putting you off? How much do you intend to invest?

Vortigern

Are you sure the price is £100 per share and not 100 pence per share.

Shares are often priced in pence (designated GBX) rather than in pounds (GBP)

bowlhead99

Luke_Marciniak wrote: »

Hi,

As most popular ETFs (and even some less popular ones) seem to be priced at around £100/share a more, can anybody recommend a low-cost, cheaply priced ETF (for any particular sector or geographical region although I'm looking for a S&P 500 type tracker fund if possible)

Thanks

Presumably you're not going to buy less than £100 worth at a time, because dealing fees will kill you (paying £10 to buy £50 worth of ETF shares and then £10 again to sell them means you the shares have to go up massively in value to allow you to break even on the investment)

When you're buying larger amounts of shares the price per share is not massively important. For example, if you have about £1000 to invest, it doesn't really matter whether you buy 7 shares at £142 each or 990 shares at 100.4p each. Either way, you end up with about £994 invested in an index tracker and will get the same percentage return and income payments.

Both Vanguard and iShares do S&P trackers priced in pounds for under £50 a share. However, iShares have one in their "core" series with a lower management fee which is priced at over £100. It is the one you should buy though, as it has lower management fee percentage than their one that has a lower price per share, so it will get you a better return per £1000 invested.

It seems bizarre that you are just looking for "any" region or sector. That's a very strange way to invest. All the sectors and regions will have different returns from year to year and over the medium and long term. Assuming you don't know which region or sector is best, you should invest in all of them. Not in the one that has an arbitrarily lower price because they happened to split up the same assets into slightly smaller parcels.