Index tracker funds have become increasingly popular in recent years. It’s easy to see why – they provide instant diversification in one simple, low-cost investment.
Instead of trying to outperform a particular stock market or index, they aim to closely track its performance, often by simply investing in every stock in the index they’re tracking. This is in contrast to an actively-managed fund that will aim to beat the performance of an index.
They’re one of the simplest ways to invest, and as there’s no manager or analysts to pay, they’re often available at an extremely low cost (platform charges also apply).
There’s plenty of choice too – from funds tracking UK markets to those focusing further afield. Tracker funds can be held in any of our investment accounts, including a Stocks and Shares ISA, Lifetime ISA (LISA), Self-Invested Personal Pension and a Fund and Share Account.
Wealth 50 Trackers
To help narrow down the choice we have selected our favourite tracker funds across the major sectors.
|Ongoing charge (OCF/TER)||Ongoing saving||Net ongoing charge|
|HSBC FTSE 250 Index (Class S) (Acc)
FTSE 250 Index
|iShares Corporate Bond Index (H) (Acc)
iBoxx GBP Non-Gilts Overall TR Index
|iShares Emerging Markets Equity Index (H) (Acc)
FTSE All-World Emerging Index
|iShares Japan Equity Index (H) (Acc)
FTSE All-World Japan Index
|iShares Pacific ex Japan Equity Index (H) (Acc)
FTSE World Asia Pacific ex Japan Index
|Legal & General All Stocks Gilt Index Trust (C) (Acc)
FTSE Actuaries UK Gilts All Stocks TR Index
|Legal & General European Index (Class C) (Acc)
FTSE World Europe ex UK Index
|Legal & General International Index Trust (C) (Acc)
FTSE World (ex UK) Index
|Legal & General UK Index (Class C) (Acc)
FTSE All Share Index
|Legal & General US Index (Class C) (Acc)
FTSE USA Index