Wealth Shortlist Update – Legal & General UK Mid Cap Index

We’ve recently reviewed the index funds on the Wealth Shortlist, including two offering exposure to medium-sized UK companies. As part of this review, we’ve decided to remove this fund from the Wealth Shortlist. This isn’t because our view of the fund has changed, but because we think that one UK mid-cap index fund is enough to represent this area of the market on the list.

Our view

The Legal & General UK Mid Cap Index fund aims to track the performance of the FTSE 250 ex Investment Trusts Index. This means that it excludes investment trusts from the FTSE 250, some of which invest outside the UK. As a result, the fund gives investors more direct exposure to medium-sized UK-listed companies.

That makes it slightly different from a traditional FTSE 250 tracker, which includes investment trusts. However, performance from the two approaches have been similar over the long term, and both provide exposure to an important part of the UK stock market.

For the Wealth Shortlist, we’ve decided to retain one fund that tracks the broader FTSE 250 Index. The FTSE 250 is the most widely recognised benchmark for UK mid-cap shares and provides broad exposure to this part of the market.

We believe that the Legal & General UK Mid Cap Index fund remains a good option for investors who specifically want exposure to the FTSE 250 ex Investment Trusts Index. It also continues to be managed by a team who we rate highly.

Although we're removing the fund from the Wealth Shortlist, this isn't a recommendation to make any changes to an investment portfolio. Investors should make sure that any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you’re unsure if an investment is suitable for your circumstances, please seek personal advice.