FTSE 100 still unpopular

Thrugelmir

TBC15 said:

So hands up who’s got a FTSE 100 tracker.

Never owned one. 

Hard to believe first was only created in the UK in 1995. Shows how things have evolved very quickly. 

itwasntme001

TBC15 said:

itwasntme001 said:

I sold mine at the peak last year.

Nice timing, but was it worth the bother?

Total return was nearly 40% so, whilst not even average in terms of performance when compared to the rest of my portfolio, it did provide some much needed diversity.

I am pretty tech heavy as well as generally "growth" heavy.  I am only in my 30s but i feel I do not need to take that much risk as my portfolio size is into the 7-figures.  Given the great gains we have had in recent years, I am looking to transition more of my portfolio over to CGT and PNL.  Some may think I am crazy given I have decades of growth ahead, but its just how I am

itwasntme001

Thrugelmir said:

TBC15 said:

So hands up who’s got a FTSE 100 tracker.

Never owned one. 

Hard to believe first was only created in the UK in 1995. Shows how things have evolved very quickly. 

Trackers only really gained in popularity since the GFC.  I feel they are becoming more and more like momentum trades, and we all know momentum trades are simply just that - trades.

TBC15

itwasntme001 said:

TBC15 said:

itwasntme001 said:

I sold mine at the peak last year.

Nice timing, but was it worth the bother?

Total return was nearly 40% so, whilst not even average in terms of performance when compared to the rest of my portfolio, it did provide some much needed diversity.

I am pretty tech heavy as well as generally "growth" heavy.  I am only in my 30s but i feel I do not need to take that much risk as my portfolio size is into the 7-figures.  Given the great gains we have had in recent years, I am looking to transition more of my portfolio over to CGT and PNL.  Some may think I am crazy given I have decades of growth ahead, but its just how I am

7 figures and only 30, what made you step off the gas? I’m retired and still feel the need to go for it.

itwasntme001

TBC15 said:

itwasntme001 said:

TBC15 said:

itwasntme001 said:

I sold mine at the peak last year.

Nice timing, but was it worth the bother?

Total return was nearly 40% so, whilst not even average in terms of performance when compared to the rest of my portfolio, it did provide some much needed diversity.

I am pretty tech heavy as well as generally "growth" heavy.  I am only in my 30s but i feel I do not need to take that much risk as my portfolio size is into the 7-figures.  Given the great gains we have had in recent years, I am looking to transition more of my portfolio over to CGT and PNL.  Some may think I am crazy given I have decades of growth ahead, but its just how I am

7 figures and only 30, what made you step off the gas? I’m retired and still feel the need to go for it.

Closer to 40 than 30

For me I just want to concentrate on my career rather than be worried about how my stock portfolio is performing (and at what point to get out of today's winners - because they certainly will not be tomorrows winners....) so am looking to simplify holdings and become a lot more balanced in terms of risk.  Moving towards max 40-50% in public equities I think makes a lot of sense.  I wish I could access private equity because that is where the big money is made but alas I am not rich enough.

Thrugelmir

itwasntme001 said:

Thrugelmir said:

TBC15 said:

So hands up who’s got a FTSE 100 tracker.

Never owned one. 

Hard to believe first was only created in the UK in 1995. Shows how things have evolved very quickly. 

Trackers only really gained in popularity since the GFC.  I feel they are becoming more and more like momentum trades, and we all know momentum trades are simply just that - trades.

Perhaps that's because they weren't readily available. 
When making comparisons to the past. Newer investors have no comprehension of just how much has changed and how rapidly. 

itwasntme001

Thrugelmir said:

itwasntme001 said:

Thrugelmir said:

TBC15 said:

So hands up who’s got a FTSE 100 tracker.

Never owned one. 

Hard to believe first was only created in the UK in 1995. Shows how things have evolved very quickly. 

Trackers only really gained in popularity since the GFC.  I feel they are becoming more and more like momentum trades, and we all know momentum trades are simply just that - trades.

Perhaps that's because they weren't readily available. 
When making comparisons to the past. Newer investors have no comprehension of just how much has changed and how rapidly. 

Yes thats a good point, they seem to have sprung up soon after the GFC.  Increasing the overall market towards passive reduces price discovery but am not sure anyone knows at what point it becomes detrimental to price discovery such that all stocks move up or down by the same % more or less every single day.

Alexland

While trackers might have grown in market share recently I had no problem getting one for my first investment in the late 90s. I remember there were a lot of funds where a manager had assembled a set of shares to provide exposure to a market without being particularly active but not strictly following any index. I don't see that so much anymore so maybe trackers are just a better level of governance and disclosure on that type of investment which has for a long time had a chunk of the market.

NottinghamKnight

Alexland said:

While trackers might have grown in market share recently I had no problem getting one for my first investment in the late 90s. I remember there were a lot of funds where a manager had assembled a set of shares to provide exposure to a market without being particularly active but not strictly following any index. I don't see that so much anymore so maybe trackers are just a better level of governance and disclosure on that type of investment which has for a long time had a chunk of the market.

And how much were you paying for a tracker in the late nineties, costs have come down hugely of course, mainly uk centred as well. 

Alexland

NottinghamKnight said:

And how much were you paying for a tracker in the late nineties, costs have come down hugely of course, mainly uk centred as well. 

Of course probably over 1% for a FTSE100 tracker direct with the fund manager but it's now costing me around 1/10th of that to hold a global tracker in my inactive iWeb account.