What time of day to buy a world tracker ?

sidneyyoungblood

Is there a best time of the day to buy a world  tracker fund , not some much to time the market but  to get a rough idea of how much it will cost at the next price point ?

I recently bought a HSBC one at 2pm and was priced at 12pm the next day and the price varied quite a bit ..  

masonic

For the HSBC FTSE All World tracker, the valuation point is midday, so you should get your order in a couple of hours earlier (or possibly more) to have it execute at that point. Your investment platform will usually have information about cut-off times.

Had you placed your order at 2pm today, the price would definitely have varied!

sidneyyoungblood

masonic said:

For the HSBC FTSE All World tracker, the valuation point is midday, so you should get your order in a couple of hours earlier (or possibly more) to have it execute at that point. Your investment platform will usually have information about cut-off times.

Had you placed your order at 2pm today, the price would definitely have varied!

Thanks .for the information , will in the future buy at 8am on the day I am thinking of buying.

Hoenir

If you want to trade actively then chose an ETF.  An OEIC is highly restrictive. To accurately capture all the major global markets at close in GMT the valuation point is 12pm. Valuation being based on the latest prices of the major markets at their last close. 

Labtebricolist

If you’re in it for the long term then it probably isn’t going to make that much difference.

I guess one of the disadvantages of traditional funds over ETFs is the lack of real time market pricing (though, conversely, you don’t get the bid/offer spread), however, this only really matters in times of market volatility (like now!).  Most days you’d likely never notice it.

boingy

Yep, lots of 'em are priced at noon, based on the previous 24 hours.
Not sure if it's the same for all brokers but those that I have used only deal at the post-noon price, so you can't really hop onto the short-term dips we are seeing at present because you'll get the "next" price not the current one.

For example, today I'd expect tracker funds to go up at noon because of the share bounce yesterday, but even if you place the order at 8am you'll still get the price after the (presumed) noon price rise.

sidneyyoungblood

boingy said:

Yep, lots of 'em are priced at noon, based on the previous 24 hours.
Not sure if it's the same for all brokers but those that I have used only deal at the post-noon price, so you can't really hop onto the short-term dips we are seeing at present because you'll get the "next" price not the current one.

For example, today I'd expect tracker funds to go up at noon because of the share bounce yesterday, but even if you place the order at 8am you'll still get the price after the (presumed) noon price rise.

thanks , so if i buy say at 8am tommorow  would for an example the  sp500 price be the one at todays close or yesterdays ?  

Hoenir

sidneyyoungblood said:

boingy said:

Yep, lots of 'em are priced at noon, based on the previous 24 hours.
Not sure if it's the same for all brokers but those that I have used only deal at the post-noon price, so you can't really hop onto the short-term dips we are seeing at present because you'll get the "next" price not the current one.

For example, today I'd expect tracker funds to go up at noon because of the share bounce yesterday, but even if you place the order at 8am you'll still get the price after the (presumed) noon price rise.

thanks , so if i buy say at 8am tommorow  would for an example the  sp500 price be the one at todays close or yesterdays ?  

Fund would be valued at Today's close. You'd get Japan, China, India at the market close tomorrow morning (GMT time).