Tracker Funds

InvesterJones

I agree with the above! Don't worry, Fidelity and HL will both provide annual statements.

wmb194

MissHap said:

Now that I've taken the plunge, how do I track my investment?
Looking at the HL & Fidelity websites, its not apparent.

When the trades have settled you'll see them in your account and basic performance data are presented.

Otherwise, Google the fund names and you should be able to find the funds' websites showing price, holdings, costs and so on.

dunstonh

InvesterJones said:

I agree with the above! Don't worry, Fidelity and HL will both provide annual statements.

Under MiFIDII they should be quarterly.

daimes

Looking at how well this fund converts volatility (risk) to performance, the Fidelity World Index is not bad. Over the past 10 years it has delivered 13.8%pa from 12% volatility.



Most indicators are in the green. However, you can do much better!

 
Here's an alternative portfolio suggestion with a similar risk profile (volatility 12%) over 10 years but it has delivered 18% pa for the same risk. 

Blackrock Cash D Inc	GB00B42XLZ68	12.50%
Fidelity Funds Global Tech	LU1033663649	61.30%
L&G Global 100 Index	GB00B0CNH056	26.30%

I ran this through my online Efficient Frontier calculator and here's the alternative portfolio performance: -



Same risk, much better performance.

NoviceInvestor1

You mean same VOLATILITY (which is a risk, but not all risks), much better PAST performance....

It's pretty easy looking at what would have performed best in the past. 

But sticking quarter of a portfolio into a fund that has 45% of its holdings in 5 companies that have absolutely rocketed these past few years doesn't scream low risk to me. 

LHW99

I am dripping into this monthly, but it is for a grandchild - so long term (15 years+) and the child can't panic when markets throw a wobbly (well not for a while yet).

I wouldn't suggest it for everyone, particularly older / less experienced although its a perfectly acceptable fund of its type.

InvesterJones

daimes said:

Looking at how well this fund converts volatility (risk) to performance, the Fidelity World Index is not bad. Over the past 10 years it has delivered 13.8%pa from 12% volatility.

 
Here's an alternative portfolio suggestion with a similar risk profile (volatility 12%) over 10 years but it has delivered 18% pa for the same risk. 

Blackrock Cash D Inc	GB00B42XLZ68	12.50%
Fidelity Funds Global Tech	LU1033663649	61.30%
L&G Global 100 Index	GB00B0CNH056	26.30%

As already mentioned, it's generally not a good idea to just look back and pick what has done well before. Your alternative portfolio is extremely concentrated in technology (twice - the top assets in L&G Global 100 are also tech) - you might as well just pick Nvidia and say look how well this portfolio has done.

The world index on the other hand is much better diversified, and has tech stocks only in the weighting the whole market believes is right looking forwards. Any deviation from market cap weighting is saying you think you know better. The world index is probably a whole lot cheaper too in terms of fees.

daimes

NoviceInvestor1 said:

You mean same VOLATILITY (which is a risk, but not all risks), much better PAST performance....

It's pretty easy looking at what would have performed best in the past. 

But sticking quarter of a portfolio into a fund that has 45% of its holdings in 5 companies that have absolutely rocketed these past few years doesn't scream low risk to me. 

The guy asked about investing in ONE fund. I showed him a better alternative.

Now let's look at my portfolio chart



How's that for past performance. Like it or not that fidelity fund has consistently picked the best performing companies at the lowest risk over the past 20 years... and yes by risk I mean volatility.

InvesterJones

daimes said:

NoviceInvestor1 said:

You mean same VOLATILITY (which is a risk, but not all risks), much better PAST performance....

It's pretty easy looking at what would have performed best in the past. 

But sticking quarter of a portfolio into a fund that has 45% of its holdings in 5 companies that have absolutely rocketed these past few years doesn't scream low risk to me. 

The guy asked about investing in ONE fund. I showed him a better alternative.

That portfolio does not seem better for the OPs requirements.

DiamondLil

LHW99 said:

I am dripping into this monthly, but it is for a grandchild - so long term (15 years+) and the child can't panic when markets throw a wobbly (well not for a while yet).

I wouldn't suggest it for everyone, particularly older / less experienced although its a perfectly acceptable fund of its type.

I'm doing the same for my grandchildren - dripping monthly, small amounts.