If I’d invested £5k in a FTSE 250 index tracker 5 years ago here’s what I’d have today

At some point a decade or so ago, I bought a FTSE 250 tracker, and did pretty well out of it. I chose it to broaden my exposure to the UK stock market, as I already owned a FTSE 100 tracker. It did the job, cheaply, as trackers are designed to do.

I sold it at some point – I don’t remember the date – when I shifted towards buying direct equities in a bid to generate a superior return.

I don’t regret my decision, but was curious to see how the FTSE 250 had done since I sold my tracker. Having checked, l’m happy I sold. Over the past five years, the index has climbed just 1.22%. If I’d invested £5,000 five years ago, it would have grown to just £5,061.

A tough five years

But my total return would be better than that. The index currently yields 3.4%. If that was my average yield over the five-year term, I’d have generated another £900 or so. So I’d have less than £6,000 in total. Still…