FTSE 100 Tracker Funds

Invest From
£25 per month or £100 single
Fund

iShares Core FTSE 100 ETF

Ongoing Charge
0.07%
ISA, SIPP & Direct Investment

Our view: This is a super low cost FTSE 100 tracker with a 0.07% pa annual charge. The product has a record of tracking its benchmark to a high degree of accuracy and scored ahead of rivals on this measure. Income generated is reinvested.

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.

Important information:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund

HSBC ETFS PLC FTSE 100 UCITS ETF

Ongoing Charge
0.07% pa
ISA, SIPP & Direct Investment

Our view: This is a super low cost FTSE 100 tracker with a 0.07% pa annual charge. The investment objective of the Fund is to replicate the performance of the FTSE 100 Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. Income generated is reinvested.

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.

Important information:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund

iShares 100 UK Equity Index

Ongoing Charge
0.06% pa
ISA, SIPP & Direct Investment

Our view: This is a super low cost FTSE 100 tracker with a 0.06% pa annual charge. The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performance of the FTSE 100 Index by investing in companies in the Index.  Income generated is reinvested.

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.

Important information:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund

Vanguard FTSE 100 UCITS ETF

Ongoing Charge
0.09% pa
ISA, SIPP & Direct Investment

Our view: This is a super low cost FTSE 100 tracker with a 0.09% pa annual charge. The Fund attempts to: 1. Track the performance of the Index by investing in all constituent securities of the Index in the same proportion as the Index. Where not practicable to fully replicate, the Fund will use a sampling process. 2. Remain fully invested except in extraordinary market, political or similar conditions. Income generated is reinvested.

Available via:

Hargreaves Lansdown Platform »

AJ Bell Platform »

Important information:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Invest From
£25 per month or £100 single
Fund

L&G UK 100 Index Trust

Ongoing Charge
0.07%
ISA, SIPP & Direct Investment

Our view: This is a super low cost FTSE 100 tracker with a 0.06% pa annual charge after a 0.04% discount if you invest via Hargreaves Lansdown. This fund tracks the FTSE 100 index of the largest companies on the UK stock market. Lots of these companies are big multinationals that make most of their money overseas. So even though it only invests in UK companies, investors get exposure to the global economy too. Legal & General has a large and experienced team. They keep their costs low and have done a good job of performing similarly to the index to date. Income generated is reinvested.

Available via:

Hargreaves Lansdown Platform »

Important information:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

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.

An online investment platform is simply an online account where you can access your investments including, sharesISAs, investment funds in one place.

Fund platforms include: Hargreaves Lansdown, Interactive Investor & AJ Bell

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.

Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

* Details of how the Financial Services Compensation Scheme applies to investment firms can be found at fscs.org.uk.