Help pls! How to invest in ETFs & Index tracker funds?

Emperor2014

Hi all

I'm a complete newbie to ETFs and index tracker funds. But I am considering investing in them.

I am particularly interested in how I can invest in a basket of technology shares to diversify the risk of holding investment in one technology share, but at the lowest possible cost. So would greatly appreciate any advice and insights you can offer on the following questions:

1. How/where can I buy ETFs and index tracker funds? What platforms or brokers do you guys use or recommend? Preferably one that enables investment in ETFs and tracker funds through an ISA

2. How does the cost and fee structure work - is it like execution only share dealing where you pay a fixed fee, or is there an annual management fee/charge as a % of your total investment?

3. What is the typical trading cost differential between an ETF and an index tracker fund - is one more expensive than the other?

4. Does anyone know of specific UK, US and China focussed technology ETFs or tracker funds?

eskbanker

You'd buy ETFs and funds via a platform, most of which will offer ISAs and whose costs (which use varying structures) are readily compared at sites such as:

http://monevator.com/compare-the-brokers/
http://www.comparefundplatforms.com/
http://forums.moneysavingexpert.com/showthread.php?t=5583030

The platforms themselves will allow you to research the markets for costs and holding breakdowns, as will independent sites such as Trustnet and Morningstar.

MaxiRobriguez

Is there a particular reason you're focusing on technology only?

Typically advice would be to diversify across geographies, market cap sizes and sectors.

Technology has performed very well over the past five years or so, but so too it did in the run up to 2000.

DrSyn

I think it would be prudent to hold more than technology funds but you pays your money and takes your pick.