Ftse 100 or 250 Tracker - through Who though?

Legacy_user

Hi there
I fancy putting a bit aside each month into one of the above, say for 5-10 years ( if i am still here!).
I will go for the isa wrapper but wondered who offers the opportunity online to buy into such a tracker fund.
Just wondered if anyone could help?
Thanks

ColdIron

Investing in only the biggest companies in the UK is poor investing, eggs and baskets and all that. Literally every platform will have a selection of cheap FTSE 100/250 trackers so you should focus on costs. The sums involved and trading frequency will determine who is best for you.

http://monevator.com/compare-uk-cheapest-online-brokers/

AnotherJoe

Neither.
Buy a global tracker.
Something like
Vanguard FTSE Developed World ex UK
Standard Life Overseas Tracker
Vanguard SRI Global Stock Fund
L&G International Index Trust


Buy the "acc" versions.


If you buy Vanguard fund(s) only, buy within the Vanguard ISA. Lower costs.

System

Thanks for that. Whats an acc version please?

AnotherJoe

acc = "Accumulation".


Two types of funds, inc and acc.
Income funds pay you dividends ("income")
Accumulation funds retain the dividends within the fund so its price grows."accumulates"


Assuming your aim is to increase the total amount invested, acc is the simplest way to do it (and it will actually return more in total for reasons not worth going into here)

System

Thanks anotherjoe

MK62

AnotherJoe wrote: »

Neither.
Buy a global tracker.
Something like
Vanguard FTSE Developed World ex UK
Standard Life Overseas Tracker
Vanguard SRI Global Stock Fund
L&G International Index Trust

Only one of those has any UK exposure at all (and then only 5%).......the UK may not be as racy as some markets, but it doesn't expose you to currency exchange risk (or reward, to be fair).
I'd be more inclined to take a look at the Vanguard Life Strategy series.....unless, of course, avoiding/limiting any UK exposure is the aim.

Bravepants

Vanguard's FTSE Global All Cap is probably worth a look too.

dunstonh

The FTSE100 is a dire index that is a consistent underperformer in global terms.

Investing in a single sector is bad investing. You are effectively betting on UK equity large cap being the best sector all the time. Whereas in reality, it hasn't been for over 25 years. Investing in any one sector carries that risk whether its UK or US or whatever.

Multi-asset funds are better suited for this purpose.

AnotherJoe

MK62 wrote: »

Only one of those has any UK exposure at all (and then only 5%).......the UK may not be as racy as some markets, but it doesn't expose you to currency exchange risk (or reward, to be fair).
I'd be more inclined to take a look at the Vanguard Life Strategy series.....unless, of course, avoiding/limiting any UK exposure is the aim.

VLS though goes too high. 25%. As a result far too much concentrated into a handful of sectors.

AnotherJoe

MK62 wrote: »

Only one of those has any UK exposure at all (and then only 5%).......the UK may not be as racy as some markets, but it doesn't expose you to currency exchange risk (or reward, to be fair).
I'd be more inclined to take a look at the Vanguard Life Strategy series.....unless, of course, avoiding/limiting any UK exposure is the aim.

Don't they all in reality?