How can I invest in FTSE250

andy112233

Hi

I would like to invest in the FTSE 250, I am not looking for a long term investment but rather buy and sell in the short term, I have looked at a number of ETFs with which I can buy and sell just as you would shares, but find that the ETFs don't reflect accurately what is happening in the FTSE 250, is there any way I can invest directly on the FTSE 250 or are ETFs the only way I can invest in order to trade ?

Linton

There is an HSBC FT250 index tracker which I think is the only unit trust/oeic.

andy112233

Thanks Linton, I may be wrong here but with unit trusts you buy and sell at a price that is set at a particular point in the day, I would like to be able to buy / sell at a price that is reflective of the FTSE in real time, some ETFs do follow the FTSE250 but they are not very accurate,ETFs that I have used are the Vanguard and iShares ones, these are close but still not really accurate.

EdGasket

Vanguard VMID ETF otherwise a CFD or speadbet on the index itself.

andy112233

Thanks, I suspected that you cannot invest direct into the FTSE250, instead having to invest by some other means that tracks the index, will look into CFDs, have heard about spread betting. Tho, in my circumstances I trade within an ISA so ETFs look like the only option if I want to stay tax efficient (ie zero tax on any gains).

masonic

andy112233 wrote: »

Thanks, I suspected that you cannot invest direct into the FTSE250, instead having to invest by some other means that tracks the index, will look into CFDs, have heard about spread betting. Tho, in my circumstances I trade within an ISA so ETFs look like the only option if I want to stay tax efficient (ie zero tax on any gains).

Profits from gambling are tax free - that covers spread betting. I'd still opt for the ETF, though. You've got much less chance of doing something wrong and losing the shirt off your back.

pmjenkins

andy112233 wrote: »

I have looked at a number of ETFs with which I can buy and sell just as you would shares, but find that the ETFs don't reflect accurately what is happening in the FTSE 250

Which ETFs have you looked at and why did you think they were unsuitable?

andy112233

I have looked at :

- HSBC ETFS PLC HSBC FTSE 250 UCITS ETF
- MULTI UNITS FRANCE LYXOR ETF FTSE 250
The above 2 I find do not follow the FTSE accurately in real time at all, so don't use them,

- VANGUARD FUNDS PLC VANGUARD FTSE 250 UCITS ETF
This one has long periods (hour or so) where the value does not seem to move at all despite there being movement in the FTSE 250

- ISHARES PLC ISHARES FTSE 250 UCITS ETF
This one I have found to most accurately reflect what is happening real time tho still not entirely accurate.

I am basing this purely on comparing the FTSE against a particular ETF in google finance across the day, I wouldn't say they are not suitable as over the long term they are a good option.

AnotherJoe

Confusing title.
You state investing but you want to day trade.
So why aren't you using spread bet sites as you wish to bet not invest ?
No tax.

masonic

andy112233 wrote: »

I have looked at :

- HSBC ETFS PLC HSBC FTSE 250 UCITS ETF
- MULTI UNITS FRANCE LYXOR ETF FTSE 250
The above 2 I find do not follow the FTSE accurately in real time at all, so don't use them,

- VANGUARD FUNDS PLC VANGUARD FTSE 250 UCITS ETF
This one has long periods (hour or so) where the value does not seem to move at all despite there being movement in the FTSE 250

- ISHARES PLC ISHARES FTSE 250 UCITS ETF
This one I have found to most accurately reflect what is happening real time tho still not entirely accurate.

I am basing this purely on comparing the FTSE against a particular ETF in google finance across the day, I wouldn't say they are not suitable as over the long term they are a good option.

The price of an ETF will only update when someone trades it. It should deliver market performance, even if held for just a few days. Perhaps you should explain what you are trying to achieve in a bit more detail.

As AnotherJoe says, spreadbetting would be better if you are day trading, but I'd advise against day trading.

andy112233

I am not sure what you call it, I invest in a 250 ETF when it has fallen, and when it rises (may be more than a few days) I sell, when it dips again I buy, if it rises significantly over the day then I will sell. So I can sell within the day, but if I am down then I am happy to hold on to it for longer periods.

This gives me a quick profit when the 250 had risen, and if it does not then I am ok with leaving my money in there as I think the 250 will always rise albeit over a longer period of time. I don't know if this is a good way to invest but it seems a safe way to me as any?