UK Tracker Fund

J

joecc

Registered User
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Hi all,
I'm new to investing....
Just looking for advice..

with regards, to a tracker fund, specifically, a UK Tracker Fund such as the FTSE All Share...
Would this be a good route, for a moderate risk taker, with no specific knowledge of shares, plus with the added benefit of low costs?




The UK tracker fund, should i go through Irish broker or English one?

shed any light on currency exchange fees?
Is this something to think about?

or stick with a euro denominational fund?

sorry for loads of q's!

joe
 
Personally a euro denominated fund is probably a better bet because you will save on currency transaction costs that only add another layer of fees to the brokerage costs.

For someone looking for a basic start, a European (Eurostoxx 50 or Stoxx 50) tracker, or even a MSCI World Index tracker offer better diverisifcation than a UK tracker.
 
Thanks for clearing that.

Would you recommend going through a Euro broker for such funds?
 
defiantshrim said:
Personally a euro denominated fund is probably a better bet because you will save on currency transaction costs that only add another layer of fees to the brokerage costs.

For someone looking for a basic start, a European (Eurostoxx 50 or Stoxx 50) tracker, or even a MSCI World Index tracker offer better diverisifcation than a UK tracker.
Click to expand...

If you buy the FTSE100 tracker you are not really investing in the UK. 75% of earnings of the FTSE100 are foreign - mostly in dollars, euros and a healthy spread in Emerging Markets.

One of the reasons why the FTSE100 has risen so much recently despite the UK's economy and sterling being so weak.

The FTSE100 is a play on global growth much more than UK growth. Of course you have the currency risk of buying into a sterling denominated fund, but IMO this could be a good thing with the Euro so artificially strong and likely to fall at some point.

If you buy a FTSE250, FTSE350 or FTSE All Share you are investing much more heavily into the UK economy which is still has a lot o structural problems to resolve.
 
Good info.

any recommends for a broker for a Eurostoxx 50?
Should I search for a non-Irish broker?

With an index fund, can you invest monthly? 'dollar cost averaging'...

sorry for the q's!
 
Try TDWaterhouse they are one of the cheapest fund providers here in the UK and I understand they operate over there.

Also try the banks. Here in the UK HSBC do dirt cheap trakers at 0.25% annual fee. Also Legal and General do cheap ones so try similar providers in Ireland to find the cheapest.

Also trackers are either Acc or Inc, so if you want to reinvest all dividends buy the Acc and if you ant the income buy the Inc fund. If your a tax payer and want to roll over the dividends for greater long term growth then the Acc is the way forward.

Also with a tracker do not buy from anyone with an initial charge! Pure scam. Also look for low annual management fees. Less than 0.5% if you can!!!
 
wrt to dollar cost avg and etfs. If it costs a minimum of 20/25€ per trade what sort of ballpark sum should you be investing to keep the % cost acceptable?
wrt to accumulated efts - ishares efts have a no. of etfs that I'm interested in available in both distributive and accumulative form. I intend to hold efts for circa 30 yrs - something along the lines of buy eft for $10000 and add $10000 per yr. Is there is significant benefit to purchasing accumulated eft over distributive in this case?
 
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