Tracker 'underperformance'

[Stedman]

Hi all.

This HSBC American tracker has been 'bob on' except for last year where it underperformed by 8%.

It doesn't seem to be the exchange rate, so what gives?

Is anyone able to shed some light on this?

Thanks.

[limpsfield]

Looking at this page

https://www.fidelity.co.uk/factsheet-data/factshee...

It looks like it tracked its benchmark?


31 Dec 24 - 31 Dec 25 Fund: 9.81 Benchmark: 7.78

[Stedman]

Thanks, yes it does.

However, it states it tracks the S&P - which it appeared to until 2025 - where the performance was more 16-18%

Hence confusion.

[Simpo Two]

Could it be due to this bit?

'The Fund may also invest in the following assets which are not part of the Index: - cash to manage day-to-day cash flow requirements; - units or shares of collective investment schemes, including collective investment schemes managed or operated by the HSBC Group in order in order to manage day-to day cash flows; - equity related securities such as American Depositary Receipts and Global Depositary Receipts (which are certificates typically issued by a bank or trust company evidencing ownership of shares of a non-US issuer) in order to achieve exposure to a stock instead of using a physical security.'

So it might not be 100% S&P500.

[LeoSayer]

Stedman said:

Thanks, yes it does.

However, it states it tracks the S&P - which it appeared to until 2025 - where the performance was more 16-18%

Hence confusion.

This funds compares to the "S&P 500 TR GBP" index which differs from the pure S&P500 due to exchange rates and dividends.

What period are you using exactly and what numbers do you have for both?

[NowWatchThisDrive]

Looks to track the S&P, in GBP and on a Total Return basis, pretty closely. If I had to guess the small discrepancy is probably something to do with it being an OEIC, so NAV only calculated once a day and perhaps using the previous day's FX fix, and maybe some quirks of dividend reinvestment timing.