Index Trackers

Hitting

Is UK best place to invest into a tracker?…..or where?

eskbanker

'Best' in what sense, i.e. what are you trying/hoping to achieve?

dunstonh

Is UK best place to invest into a tracker?

The general consensus across portfolio model suppliers is "god no".  In all my years I have never seen so little allocated to UK equity across most risk profiles.

InvesterJones

Hitting said:

Is UK best place to invest into a tracker?…..or where?

I note this isn't the first time you've asked about which regions to invest in. In terms of market capitalisation, ie, what the consensus view across all investment is, the UK is about 4% of the global market. If you think you know better than the collective wisdom of investors then you may want to weigh it higher or lower.

DeLaSole

Hi Hitting,

If you look at the geographical breakdown of a popular tracker such as the HSBC FTSE All-World Index Fund, you'll see (as said above) that under 4% is actually listed as UK.

Best wishes.

EthicsGradient

InvesterJones said:

Hitting said:

Is UK best place to invest into a tracker?…..or where?

I note this isn't the first time you've asked about which regions to invest in. In terms of market capitalisation, ie, what the consensus view across all investment is, the UK is about 4% of the global market. If you think you know better than the collective wisdom of investors then you may want to weigh it higher or lower.

It's not just a question of the collective wisdom of world investors on current market capitalisation, though. UK investors will have needs more closely linked to the value of the pound (wages for services here are paid in pounds), and so there is a case for investments with some weighting towards UK investments, for us. What the weighting should be is hard to say, though.

wmb194

Quite a lot of people think that the UK is undervalued but these things are never all or nothing.

coastline

Depends where you want to be . The FTSE 100 hasn't been the best in recent years but if you want a run for your money then take a look at the FTSE 250. Past performance of course but why can't it happen again ? Three indices on chart , MSCI World (global tracker) , FTSE100 and FTSE250. From the chart tab annualised performance since launch of FTSE 250 10.5% and more than the global index. Stretch the chart itself to 10 years ,20 years and then from JAN 1986. Impressive results. FTSE 250 is worth a slice of funds on those results.

  Chart Tool | Trustnet

InvesterJones

EthicsGradient said:

InvesterJones said:

Hitting said:

Is UK best place to invest into a tracker?…..or where?

I note this isn't the first time you've asked about which regions to invest in. In terms of market capitalisation, ie, what the consensus view across all investment is, the UK is about 4% of the global market. If you think you know better than the collective wisdom of investors then you may want to weigh it higher or lower.

It's not just a question of the collective wisdom of world investors on current market capitalisation, though. UK investors will have needs more closely linked to the value of the pound (wages for services here are paid in pounds), and so there is a case for investments with some weighting towards UK investments, for us. What the weighting should be is hard to say, though.

It certainly makes the case for using a GBP denominated fund, I'm not sure about need for additional weighting though - FTSE 100 is mostly multinational companies anyway so doesn't really reflect the domestic situation.

EthicsGradient

InvesterJones said:

EthicsGradient said:

InvesterJones said:

Hitting said:

Is UK best place to invest into a tracker?…..or where?

I note this isn't the first time you've asked about which regions to invest in. In terms of market capitalisation, ie, what the consensus view across all investment is, the UK is about 4% of the global market. If you think you know better than the collective wisdom of investors then you may want to weigh it higher or lower.

It's not just a question of the collective wisdom of world investors on current market capitalisation, though. UK investors will have needs more closely linked to the value of the pound (wages for services here are paid in pounds), and so there is a case for investments with some weighting towards UK investments, for us. What the weighting should be is hard to say, though.

It certainly makes the case for using a GBP denominated fund, I'm not sure about need for additional weighting though - FTSE 100 is mostly multinational companies anyway so doesn't really reflect the domestic situation.

A simple GBP denominated fund wouldn't make a difference, but one with currency hedging would (though that generally comes with a higher annual charge to arrange it). Yes, a bit of FTSE 250 would do better at tracking the UK economy than the FTSE 100.