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5th
May 2020
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How Do I Invest In A FTSE Tracker

How Do I Invest In A FTSE Tracker
  • An index tracker fund investment can be a great way of investing at low cost where you are not paying for expensive fund management fees.In weighing up the best way to invest in the FTSE there are a number of options open to you.

What are my options when getting a FTSE tracker fund or FTSE exchange traded fund

1. FTSE Tracker Funds

Typically you can buy tracker funds:

  • via a fund management company - e.g. Legal and General offer a range of their own low cost tracker funds including a FTSE 100 tracker and a FTSE All Share Tracker
  • via an agent with ties to the fund manager
  • through a fund supermarket - e.g. Fund supermarkets require you to set up an account through which you can buy and sell funds or shares. You can buy FTSE tracker funds via a platform. Options include Interactive InvestorFidelity,  Hargreaves Lansdown, and AJ Bell. As part of setting up an account there will be an ongoing charge levied by the platform provider.
  • through an online share dealing service or stockbroker - e.g. Interactive Investor
  • through an independent financial adviser or financial planner.

2. FTSE ETF Tracker

You can also buy exchange traded funds (ETFs) in the same way you would buy regular company shares on the stock exchange.

An ETF can be a low cost way of tracking the FTSE 100. The annual cost of a FTSE 100 ETF can be less than 0.1% pa which over the long term can make a difference.

In order to buy an ETF FTSE 100 Tracker you will first need to set up a trading account. This can be done typically via a trading platform provider.

Examples of FTSE ETF Trackers include:

As with buying shares there will be a trading cost when you first buy 

If you’re not sure what kind of investment fits your needs, it’s a good idea to talk to an Independent Financial Adviser (IFA).

Selected ISAs

Core FTSE 100 ETF Tracker Fund

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks the FTSE 100 Index
  • Invest From: £25 pm
  • Investment Options: Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.

A super low cost FTSE 100 tracker ETF fund 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.

This fund is available via: Interactive Investor platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

FTSE 250 UCITS ETF Tracker Fund

from Vanguard

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 250 Index
  • Invest From: £50 pm
  • Investment Options: Tracks the FTSE 250 index of medium-sized companies, providing a greater UK domestic focus than the FTSE 100.

Low cost FTSE 250 tracker with a 0.10% pa annual charge.

It comes from one the most established players. This is an ‘Accumulation’ product, meaning any income generated is reinvested.

This Fund seeks to track the performance of the FTSE 250 Index, a widely recognised benchmark of mid cap sized companies of the United Kingdom. 

Available via:

Fidelity investment platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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