FTSE100 tracker
Discussion
Stupid question, potentially, but am I right in thinking that an index tracker directly reflects the movements of the market that it's tracking? For example, if you paid £6,000 into a FTSE100 tracker when the FTSE100 was trading at 6,000 points, then a rise to 7,000 points would mean you had £7,000, or a fall to 5,000 would mean you had £5,000?
MitchT said:
Stupid question, potentially, but am I right in thinking that an index tracker directly reflects the movements of the market that it's tracking? For example, if you paid £6,000 into a FTSE100 tracker when the FTSE100 was trading at 6,000 points, then a rise to 7,000 points would mean you had £7,000, or a fall to 5,000 would mean you had £5,000?
Essentially yes but the Ftse (for example) will pay a dividend (~3.5% at the moment). So that will factor into the value. And it's unlikely the prices would match, so better to say it goes down 10% and the value goes down 10%.lampchair said:
Fortunately around 11.5% up at the mo.
Jumped in about a week ago.
Hopefully it remains true, but good timing.Jumped in about a week ago.
My portfolio is 3.81% in loss currently. I'm reasonably happy with that as I think most of my buys were in the last 12 months. I did make some buys of shares on the way down which have helped (despite not being too well timed). This is my SIPP so I can be relaxed about paper losses to a degree as there is the tax benefit.
EDIT : I'm not sure we're out of the woods by a long way. I may convert some of my recent buys to cash soon.
daddy cool said:
Ari said:
Your rate of return is -42.05%
Your investments returned you ?£4,795.08
Hows it looking today? Mine has picked up (slightly... very slightly)Your investments returned you ?£4,795.08
Your rate of return is -23.21%
Your investments returned you −£2,580.38
I'm looking at this over a 10 year timeframe (ie it's about 10 years before I'll want to start taking money out of it) and I'm also thinking that if house prices drop (entirely likely) it might be a good time to think about an upgrade.
So on the one hand this feels like a good time to drop a little extra into this tracker, on the other I need to save as much cash as possible toward a possible house move.
Ari said:
I made another £1,000 'buy' on Monday. Unfortunately it didn't go through till Tues night/Wed morning (I'm not sure whether it reflects the Tuesday closing price or the Wednesday opening price) so didn't get Tuesday's lift but it's gone up a bit since then, and has helped the 'pot' generally.
I think this depends on settlement date and in the case of funds when it's placed relative to daily valuations. Ari said:
Your rate of return is -42.05%
Your investments returned you ?£4,795.08
So it looks like you were almost bang on with your earlier prediction...Your investments returned you ?£4,795.08
Ari said:
Plus it is a very long term investment, lets say it does halve - well then my couple of hundred each month will be buying twice as much until it recovers.
I am in the same position with a couple of trackers that have dropped quite phenomenally in value. I am going to try and hold my nerve and continue to drip feed. It is only by investing in a bear market that you can take advantage of pound cost averaging...
Is anybody waiting for the new ISA season to start before investing?
I’m eager to invest but I’d rather do it inside the ISA than outside (partly for tax reasons and partly for the sake of simplicity). I was just wondering whether loads of people were in the same boat which would make the FTSE jump when everybody piles in (in which case it’s better to buy NOW if you see what I mean?
I’m eager to invest but I’d rather do it inside the ISA than outside (partly for tax reasons and partly for the sake of simplicity). I was just wondering whether loads of people were in the same boat which would make the FTSE jump when everybody piles in (in which case it’s better to buy NOW if you see what I mean?
Countdown said:
I was just wondering whether loads of people were in the same boat which would make the FTSE jump when everybody piles in
Doubt that UK retail investors have enough money to cause substantial jumps in the FTSE.Even if they did, the pattern would be visible a mile off to high frequency / quant traders, so I wouldn't expect it to cause significant price action.
CSLM3CSL said:
If for example three companies go bust then I take it you do not have the funds purchase the three companies that replace them so no longer tracks the index?
Ftse 100 is market cap, so a company struggling would drop out of the 100 and be replaced before they went bust. tescorank said:
So a 3 year FTSE tracker couldnt go wrong as long as this virus doesnt hang around or some other god forbid mass global event where we are all doomed !
Half the FTSE100 by market cap is in energy (Oil/gas), banking and consumer staples, much of which is actually quite detached from the UK economy. This isn't your average index industry weighting if you compare it to global equity indexes or other big economies like US, China, Japan or the rest of europe.
It depends on what you think is going to drag the world out of the impending recession.
If you want to invest in the UK a FTSE250 tracker or a whole of UK index is much more diversified and probably better reflects our economic activity.
b
hstewie said:
hstewie said:tescorank said:
So a 3 year FTSE tracker couldnt go wrong as long as this virus doesnt hang around or some other god forbid mass global event where we are all doomed !
I don't really understand why people go massively heavy on FTSE 100 trackers when there's a whole world out there 
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