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Legal & General US Index Class C - Income (GBP)

Sell:870.10p Buy:870.10p Change: 3.60p (0.42%)
Prices as at 15 July 2024
Change: 3.60p (0.42%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 15 July 2024
Change: 3.60p (0.42%)
Prices as at 15 July 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Legal & General US Index is our favourite American tracker fund. The US is the world's largest stock market so it makes sense for a diversified share portfolio to have some exposure. It's an area where few active fund managers consistently perform better than the broader US stock market, so we think a tracker fund is a great way of investing in larger US companies and keeping costs down.

Our view on the sector

UK investors need little introduction to America. It's the world's biggest stock market and is home to world-leading companies in almost every industry there is, from media and film, through to manufacturing and transportation. We think most diversified portfolios should have some exposure to the US market. But it's one of the most heavily researched in the world so share prices of well-known companies can react quickly to new information. We think this can make it more difficult for fund managers to find opportunities missed by others and to consistently perform better than the broader market over the long term. Many funds investing in the US aim to grow the value of your original investment, rather than pay a high level of income. Some focus on the largest companies in the market. Others look for opportunities amongst small and medium-sized companies, which may offer greater growth potential, but are higher risk.

Performance Analysis

The fund's tracked its index very closely since it launched. That's because its charges are low, and lower fees hold back performance less than higher ones. Because of the charges, however, the fund's performance will typically be slightly behind the index. On occasion it has ended up slightly ahead of the index due to the strategies used by the team, although this won't necessarily happen in future and isn't an aim of the fund.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low it's likely to track the index more closely.

Process and Portfolio Construction

This fund tends to invest in almost every company in the FTSE USA Index, which could help it track the index closely. Smaller businesses that make up a very small part of the index are sometimes not held in the fund as they can be more difficult or expensive to buy and sell. This helps to keep costs lower.

Legal & General is a fairly conservative tracker fund as it doesn't lend investments like some others do. It looks for other opportunities to reduce costs though, like when they rebalance the fund to match the index, or by reinvesting dividends.

question mark Manager Track Record Based on HL Quantitative Research

  • Legal & General US Index R GBP Acc

Source: Refinitiv Lipper

Fund Track Record

15/07/19 to 15/07/20 15/07/20 to 15/07/21 15/07/21 to 15/07/22 15/07/22 to 15/07/23 15/07/23 to 15/07/24
Annual return 9.18% 25.25% 1.57% 8.39% 27.32%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Originally a life insurance company, Legal & General have been involved in managing investors' money since 1836. They are now one of the UK's largest investment and insurance companies. They have a prominence in managing tracker funds- with over a dozen funds and many more investments managed on behalf of institutions and pension funds.

Legal & General are one of the best resourced teams in tracker fund management- with over 50 managers, analysts and traders. They have a conservative approach to funds with the scale to keep costs low for investors.

Information about the fund

Fund manager biography

manager photo
Manager Name: LGIM Index Fund Management Team
Manager start date: 30 September 2013
Manager located in: London

The Index Fund Management Team comprises 25 fund managers, supported by two analysts. Management oversight is provided by the Global Head of Index Funds. The Team has average industry experience of 15 years, of which seven years has been at LGIM, and is focused on achieving the equally important objectives of close tracking and maximising returns

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account