Summary
NO fund manager beats the market all the time, so why not avoid them altogether with a computer-driven portfolio that tracks the market? In the past, tracker funds have been fairly crude, composed of unit trusts that reflected the make-up of only the most mainstream indices, such as the FTSE 100. But now a vast range of exchange traded funds (ETFs) mirror hundreds of indices, sectors, currencies or commodities.
Most are cheap, boasting a total expense ratio (the standard, comprehensive measure of a fund's annual cost) of less than half a per cent, compared with an actively managed fund's TER of two per cent or more.See the full content of this document
Extract
Do Computers Know Best? ; Fund Focus
One of the most popular ETFs is iShares FTSE UK Dividend Plus. It follows the 50 highest-yielding stocks of the...
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