Global Tracker Funds

MPN

I am doing some research into Global Tracker Funds and wondered if anybody has any personal experiences with some of these index funds?

A couple of my friends currently hold some of their investments in the Fidelity Index World Fund, Vanguard FTSE Developed World Ex UK and Vanguard Life Strategy (100). I am particularly looking for a diverse Global Equity Fund maybe with a little exposure to the Emerging Markets as well. Any suggestions please?

Thanks.

TrustyOven

MPN wrote: »

I am doing some research into Global Tracker Funds and wondered if anybody has any personal experiences with some of these index funds?

I'm sure we do.
But what is it that we can give you as information that comes from our personal experiences?
It's not really something that has a "Oh yeah, I hold fund XYZ and it is very beautiful" attribute.

MPN wrote: »

A couple of my friends currently hold some of their investments in the Fidelity Index World Fund, Vanguard FTSE Developed World Ex UK and Vanguard Life Strategy (100). I am particularly looking for a diverse Global Equity Fund maybe with a little exposure to the Emerging Markets as well. Any suggestions please?

You'd use Morningstar, Trustnet or your platform's fund information screen to analyse what geographies and sectors the funds encompass. There's usually some information there that shows a pie chart or similar, of the geophraphies and sectors.

Then you'd pick one that holds all of the world including emerging markets.

I'd think in general you'd want one with the lowest annual charges, as long as it contained all the sectors etc that you wanted.

What type of fund were you thinking? ETFs? OEICs? ITs?

I'd be wary of the Fidelity World Index (what I hold) because it's only the developed world last time I checked, so no EMs.

If you chose to have EMs, why did you list both Fidelity Index World Fund and Vanguard FTSE Developed World Ex UK?

Again, make sure you check the fund composition.

MPN

Thanks TrustyOven

I'm looking for an OEIC and although I did mention it would be good to have a little exposure to EM it's not absolutely critical I'm just looking for a solid low cost global tracker that any posters can recommend? How do you find the Fidelity World Index fund?

TrustyOven

MPN wrote: »

I'm looking for an OEIC and although I did mention it would be good to have a little exposure to EM it's not absolutely critical I'm just looking for a solid low cost global tracker that any posters can recommend?

You'd want to use the search function on your platform to have a look at all the available ones.

You'd probably not want to use the Ex-UK fund unless you already had a UK fund separately.

Vanguard's LifeStrategy tends to be regarded well with other people, but their charges are higher. But they also include EM last time I checked, so that probably explains the higher charge. I might consider moving to that but I'm just a little bit unhappy about there being a bit too much UK in that fund. This kind of thing annoys / bothers people either not at all or greatly. It depends on you.

There will be other global funds, with different percentages of geographic and sector exposure. It depends on what you want. I don't think anyone will give you a firm recommendation.

MPN wrote: »

How do you find the Fidelity World Index fund?

I think it's behaving as expected. It's an index tracker, so the value of each unit varies by normal market fluctuations. I'm drip feeding money every month so I am buying at various points in time. Charges are low enough for me.

I would like EM exposure but may wait for the portfolio amount to reach 5k or 10k before I do that.

coastline

MPN wrote: »

Thanks TrustyOven

I'm looking for an OEIC and although I did mention it would be good to have a little exposure to EM it's not absolutely critical I'm just looking for a solid low cost global tracker that any posters can recommend? How do you find the Fidelity World Index fund?

MSCI World Index showing performance..

https://www.trustnet.com/Tools/Charting.aspx?typeCode=NM990100

List of 257 funds and as far as I understand those listed PT are passive..
Reset the 1 3 and 5 year tabs to show results..

https://www.trustnet.com/ratings/?univ=O&Fr_Sector=O:GLBLGRTH&Fr_Submit=true&morere%20%20sult=true&moreresult=true

DrWatson1

I've basically just asked the same question on this forum, and after a little research plumped for the Legal & General International Index Trust.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-international-index-trust-c-accumulation

It's cheaper than the Vanguard LifeFund, Blackrock or Fidelity equivalents, Plus I like the wider global exposure, and that none of the money is invested in the UK, as I figure I have enough exposure to that particular market.

TrustyOven

DrWatson1 wrote: »

I've basically just asked the same question on this forum, and after a little research plumped for the Legal & General International Index Trust.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-international-index-trust-c-accumulation

It's cheaper than the Vanguard LifeFund, Blackrock or Fidelity equivalents, Plus I like the wider global exposure, and that none of the money is invested in the UK, as I figure I have enough exposure to that particular market.

I'm umming and arrring about L&G funds for a few months so far. It's unlikely I will do anything with them for a few more months - I need to do research.

But they are ITs and I think my platform now has expensive fees for ITs, plus some of the very knowledgeable members of the forum said that ITs were for the more experienced investors, and I think they may also be closed end funds: so extra demand from investors on the fund to sell or buy could cause price fluctuations that are non-natural. So I am likely to stick with OEICs for a while until / if I find something that suits me better.

MPN

Yes, I am also looking at the L & G International Index Trust fund. On Trustnet the only passive funds to beat the L & G fund over the past 1, 3 & 5 years are the Vanguard Global Small Cap Index and the Vanguard FTSE Developed World ex UK Equity Index but you did mention that the L & G fund is cheaper than the Vanguard funds so that most probably balances them out! Food for thought?

Linton

MPN wrote: »

Yes, I am also looking at the L & G International Index Trust fund. On Trustnet the only passive funds to beat the L & G fund over the past 1, 3 & 5 years are the Vanguard Global Small Cap Index and the Vanguard FTSE Developed World ex UK Equity Index but you did mention that the L & G fund is cheaper than the Vanguard funds so that most probably balances them out! Food for thought?

Published performance figures are inclusive of fund charges, so no balancinmg out.

MPN

So basically the Vanguard funds I mentioned are overall doing slightly better than the L&G. The only other difference is the Vanguard funds are OEICs and the L&G is an IT - does this make a difference? Is the L&G IT more risky?

TrustyOven

Hmm. That L&G is a Unit Trust. "My Bad".
This might mean that for me, the charges would be the same as OEICs.

Hmm.. More research for me to do...