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FTSE 100 tracker funds are popular investments today. With these ‘passive’ products, one can get exposure to the UK’s main stock market index at a very low cost.
Are they good investments, though? Let’s take a look at how much they’ve returned over the last five years.
Tracking the FTSE 100
There are many different Footsie trackers available to investors today. And they’re not all the same.
For example, there are exchange-traded funds (ETFs), which are listed on the stock market. And then there are index funds, which trade like regular investment funds.
There are also accumulation funds (which reinvest all dividends) and income funds (which pay out income to investors).
To simplify things, I’m going to focus my analysis on the HSBC FTSE 100 Index (accumulation). This is an index fund (available on platforms like Hargreaves Lansdown and Interactive Investor), which reinvests dividends.
