Pension or ISAs?

MallyGirl

tickledpink1 said:

Thanks Incus. The reason is that I seem to be inept at this! It is jargon that I know nothing about!

I will read about workd equity tracker funds and see if I can make any sense of it.

A world equity tracker fund is simply a single fund that mimics owning a little bit of every share in the world. You buy  some of that fund and you have a bit of US equity, a bit of UK, etc, etc. Simple for you - no need to buy individual shares. How they choose what to include is what differentiates the different tracker funds.
You, after reading some more, might say that you want more investment in the UK as that is where you live - so you could buy an ex-UK tracker (excluding UK) and a bit of a UK tracker to give you a higher proportion of UK that the all in one offered.

incus432

MallyGirl said:

A world equity tracker fund is simply a single fund that mimics owning a little bit of every share in the world. You buy  some of that fund and you have a bit of US equity, a bit of UK, etc, etc. Simple for you - no need to buy individual shares. How they choose what to include is what differentiates the different tracker funds.
You, after reading some more, might say that you want more investment in the UK as that is where you live - so you could buy an ex-UK tracker (excluding UK) and a bit of a UK tracker to give you a higher proportion of UK that the all in one offered.

Good explanation.

The World tracker (or Developed World) funds have only about 4% UK.  I prefer to hold these (as there is more choice of cheap funds than in 'World ex UK') then add UK trackers to it (or not depending on how you feel about prospects)