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Building you own tracker

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I am currently with Fidelity for my SIPP and ISA.

Has anyone tried to replicate a tracker by buying individual shares , I never have but wonder if it is worth the saving or not worth the hastle?

As I believe in strong market efficeincy I never try to pick shares and have always invested in trackers so far

For example I currently have an HSBC FTSE 250 tracker with Fidelty that holds my SIPP

It has performed a lot better than an "investment" in property would

I pay a platform fee of 0.20% and then HSBC charge 0.18% so 0.38% in total.

I remember way back in economics an exercise where it was shown with maybe 20 shares you could nearly replicate the FTSE 100 by buying 

shares in all the sectors, banking, prarmaceticals , oil mining etc

Not totally but apart from things like the BP disaster in the gulf as the old shares move in sync up to a point you do not need to have shares in all of them.

I suspect it would be harder with the FTSE 250 but has anyone ever tried / actually done this?

 

 

 

 

 

 

 

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No, haven't tried and besides, what's the point?

Vanguard FTSE 250 ETF costs just 0.1% and you can hold that on most platforms at nil cost.

 

 

 

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Thanks Wudolf at 0.1% I certainly would not bother I will need to investigate this I thought the 0.38% I was paying at Fidelity was reasonable

So thanks again I am a bit sloshed at the moment but will look into this tomorrow and possibly transfer out of Fidelity to save 0.28%

Well worth it thanks

 

 

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Hi Wuldolf I feel a bit daft now but thanks very much for your comment it will be really useful to me.

I currently have an HSB 250 FTSE tracker with Fidelity and with them you have the option of comparing the peformance of various funds ETF s etc

So I compared the HSBC 250 tracker against the HSBC ftse 250 ETF

You can choose the periods you compared and for five year or so the ETF is  better not so for three months and I assume that s because there is a spread on the ETF so the benefit of the lower annual fee does not not make up for the bid / offer spread

Ayways that was brilliiant advice 

I may transfer my pension provider to Hargreaves Lansdown as they cap the fees they charge at £300 per annum on an ETF

Thanks again

 

 

 

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Not at all.

I use HL and they are very good. ISA capped at £45 and SIPP at £200 so you should be able to do better than even £300. Can set to reinvest dividends automatically at a small cost ~ £1 a go or so.

For a global tracker the Vanguard All World is hard to beat - VWRL although a bit more expensive at 0.25%, You get the world and it does everything for you. A good long term bet in a post Brexit world.

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I bought  £37,500 in the FTSE 250 tracker as mooted here and am currently up £1,100. The original plan was to drip feed and hopefully lower the average but with the index at an all time high should I take profits now to reinvest on a correction. Ultimately, I want to have £75k in here.

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