Vanguard S&P 500 Tracker not tracking

[I Like Tea]

Just looked at buying some more S&P 500 units to average down and they are the same price as when I bought some back in April when the index was at 4469. How can this be when the index is currently 3752 and has been under 4000 for the past 9 days? Why is this tracker not tracking? Any thoughts appreciated thanks.

[duckson]

Which tracker exactly?

[thekingisdead]

FX / currency fluctuation would be my guess.
If the fund is priced in £ then the decline of the £ will “inflate” the value of the fund

FWIW it’s generally accepted British investors want exposure to the dollar (I.e unhedged $ funds) - but that doesn’t help much with ongoing purchases.

Your purchase from April will have declined less than it has in $ terms tho. Swings and roundabouts

[Heathwood]

Do you mean it’s literally not moving or that it’s not tracking what you perceive to be accurately?

[simong800]

S&P 500 is down 22% this year in USD, but only down 5% ish in GBP. As such if you have a GBP tracker I'd expect it to move differently to a USD index.

[Deesee]

Are they accumulating units?

[I Like Tea]

Thank you, yes of course it’s the decline in the pound. Feel a bit dumb now🙂

[gotoPzero]

Is that the case though?

I don't think its as simple as that as its a GBP fund?

[gotoPzero]

gotoPzero said:

Is that the case though?

I don't think its as simple as that as its a GBP fund?

Sorry actually I was assuming you are talking about VUSA btw so maybe I am talking cr@p!!