FTSE 100 Tracker Funds
iShares Core FTSE 100 ETF
Available via: Interactive Investor Platform » Special Offer: Open an ISA, Trading Account and/or SIPP with Interactive Investor and get £100 worth of free trades. New customers only.
L&G UK 100 Index Trust
You can buy this fund direct from Legal & General »
HSBC ETFS PLC FTSE 100 UCITS ETF
Available via: Hargreaves Lansdown Platform »
iShares 100 UK Equity Index
What are FTSE 100 tracker investment funds?
Tracker investments are often referred to as index funds as they track the performance of a particular index, such as the FTSE 100.
The aim of tracker investments is to replicate the movements of a specific index to produce returns for the investor.
The FTSE tracks the share prices of the 100 largest companies listed on the London Stock Exchange and is widely recognised as the proxy benchmark for most investment managers.
Tracker investments can also be seen as a passive investment because it does not attempt to beat the market by buying and selling shares continuously, as the market is considered by some to be unbeatable.
A tracker fund will not fully replicate an index as there are fund administration charges, however these are relatively low as there are no managers or fund analysts salaries to pay. FTSE 100 Index tracker funds ongoing charges are typically sub 0.1% pa.
If a tracker investment appeals to you and you want find out more, use the information below to help you make a more informed decision:
- Tend to have lower fees as a fund manager is not actively managing the investment
- Seen as a long-term investment as you hold on to shares for a longer period of time
- Element of risk involved means you could lose part of your initial investment
Using our comparison tables, you can get a better idea about what type of investment will best suit your financial situation.
How do I invest in a FTSE 100 tracker fund?
You may have decided on the fund or funds you wish to invest in.
The next step is to choose a fund platform – the advantage of a platform is that it gives you flexibility in managing your investments which you don’t get if you invest directly with one fund manager.
The point is to make your life easier!
You can buy funds simply online usually at a discount and as well as a direct account, you also have the option with all good platforms to hold the fund in a tax free wrapper such as an ISA or a SIPP.