Passively managed index tracker

[Pieface]

Hi,
Now that US domiciled ETFs are "out of bounds", what are the cheapest options (in terms of fees and taxes) available for investing a lump sum into a passively managed index tracker?
Thank you.

 

[Jim2007]

All index trackers are passively managed... What index are you seeking to track?

 

[Pieface]

Global equity and FTSE 100 and S&P500. Thanks .

 

[Dardania]

This is a useful website:

https://www.justetf.com/uk/find-etf...full&replicationType=replicationType-sampling

https://www.justetf.com/uk/find-etf...nType=replicationType-sampling&index=FTSE+100

https://www.justetf.com/uk/find-etf...eplicationType-sampling&index=S%26P+500%C2%AE

 

[Steven Barrett]

Global equity and FTSE 100 and S&P500. Thanks .

They usually cost about 0.25% for European domiciled ETFs. State Street, Blackrock and Vanguard are the 3 biggest passive fund managers in the world.

You have to look at their tracking error too, see how close they are to the actual index. I did a comparison recently of how close each of those providers were to the MSCI World Index over the last 5 years. On €10,000 invested:

1. State Street were €24 positive of the MSCI, out by 0.12%
2. Blackrock were €98 positive of the MSCI, out by 0.52%
3. Vanguard were €223 negative of the MSCi, out by 1.1%

I also looked at Irish Life's Global Equity Index fund which tracks its own benchmark (and make active decisions on the weighting of Irish stock ). They were €1,564 negative of its benchmark, out by 8.30% over 5 years!



Steven
www.bluewaterfp.ie