Index tracker funds
Index tracker funds aim to mirror the performance of an index. An index is a basket of shares that represents the performance of a stock market.
The FTSE 100 Index, for example, tracks the performance of the 100 largest companies listed on the London Stock Exchange. There are a number of different indices tracking markets throughout the world, and there are even tracker funds which cover specialist sectors such as technology.
Index tracker funds generally look to own the same shares as an index, in the same proportions, and thereby track its performance. As there is no fund manager or analysts to pay, the annual management charges are generally low.
A tracker fund does not aim to beat the index, only track it. This style of fund management is also referred to as passive (as opposed to active fund management where mangers choose underlying investments they believe will outperform). If you prefer, please view the actively managed funds in the Wealth 50.
Why invest with Hargreaves Lansdown?
- No fund dealing fees
There are no fees when you buy and sell any funds in a Hargreaves Lansdown Account.
- Low annual charges
We offer a new range of index tracker funds from Legal & General and Blackrock with super-low charges that start from 0.06% per annum. Plus, competitive annual management charges.
- Variety of leading fund providers
Choose index tracker funds from providers including HSBC, Legal & General, ishares and many more.
- Wealth of investment choice
From FTSE 100 to global emerging markets, there are a wide range of markets to track.