Core Trackers
Our Core Trackers list contains our favourite tracker funds across the main sectors, at the lowest prices. This is a unique benefit to Hargreaves Lansdown clients – no other broker offers the same range of tracker funds with the same low prices.
What did we look for?
We drew up this list after carefully researching the entire market. We not only want to ensure each fund has tracked its index closely in the past, but that it is best placed to track well in future.
Index tracked - It is important to consider which index a fund aims to track. We generally feel that broader, more diversified indices are better and have wider appeal.
Costs - Costs are often the biggest factor in determining tracker fund performance, which is why we have negotiated with the fund managers to obtain lower charges for our clients. We feel these funds offer the best combination of quality and value.
Replication - Full replication is when the manager holds all the shares or bonds in the index, whereas partial replication is when the fund chooses not to hold some smaller stocks. Partial replication is common where the index being tracked has a large number of constituents. We generally feel that full replication is best for investors, as it leads to more precise tracking, but recognise that this is unfeasible in some markets.
Stock lending - Stock lending is the process where a fund lends its holdings to a third party in exchange for a fee. Stock lending is a useful tool for managers to offset costs, but it does carry some risk. We are comfortable with a fund lending stock only if investors benefit from lower fees and the manager takes steps to control the risks.
Change view: Charges and discounts | Replication | Stock lending | Prices and yields | Annual percentage growth