Tracker funds – choosing trackers

Tracker funds are a generally low cost way to invest. These passive funds are set up to mirror the performance of a chosen Index – such as the FTSE 100 – rather than being actively managed by a fund manager. 

This means more of your money can be put to work in the market.

Funds in a particular sector may follow the same index but they are not all the same. There are a number of factors to consider when selecting trackers.

  • Compare the cost of investing – tracker funds that follow the same index don’t all cost the same – ongoing charges may vary.
  • Compare the performance – using what’s known as the tracking difference you can see which fund most closely matches the index. Tracking difference is the difference between the return on your tracker and that of the index it is tracking. Another key point about the performance of tracker funds is the precise performance of a fund, against the index it tracks, and other trackers can vary depending on the time of day it is valued. If a fund is valued at midday but the index it tracks is valued at market close, this timing difference can cause positive or negative variations in apparent relative returns and increase the reported tracking difference of the fund.
  • Check whether the fund lends out the underlying stock to a third party in return for a fee which helps to keep the annual management charge at a low level. However there is always the risk the stocks may not be returned and could affect the fund's performance. Fidelity does not lend stock from its tracker funds.

Important information

The value of investments can go down as well as up, so you may not get back what you invest. Investments in small and emerging markets can be more volatile than other overseas markets. These investments may be subject to currency fluctuations. Fidelity Personal Investing only provides information and guidance on products and services and does not give advice. If you are unsure of the suitability of an investment, please contact an authorised financial adviser.

Please note risk is not the only consideration of investing and it is your responsibility to ensure the funds chosen meet your needs and continue to do so over time. Whilst The Select List represents funds that our experts particularly rate, we are not recommending that these funds are right for you. Additionally, you may own a fund that is not listed on The Select List and we are not recommending that you sell it.

Guidance to help you choose trackers

Low cost trackers covering 7 markets 

Our range covers the major markets of the world and are available at our lowest ever prices. 

Fidelity International

 

 

 

 

Our experts’ choice

Top rated tracker funds carefully selected by our team of investment experts. 

  

 

The Select List

 

 

 

View all tracker funds

Compare the full range of tracker funds available in our fund supermarket.  

 

 

BlackRock, Legal & General, HSBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Let the experts manage it for you

Take the effort out of choosing trackers with our PathFinder Foundation funds. Managed by our experts, it's a single fund that invests in different tracker funds.

The FTSE All-Share Index is calculated by FTSE International Limited. FTSE International Limited does not sponsor, endorse or promote this product. All copyright in the index values and constituent list vests in FTSE International Limited. Fidelity Investments has obtained full licence from FTSE International Limited to use such copyright in the creation of this product. ”FTSE®”and "Footsie®" are trade marks jointly owned by the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited under licence. “All-Share™” is a trade mark of FTSE International Limited.

S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by S&P Dow Jones Indices LLC (“SPDJI”) and, in some cases, sublicensed to FIL Investment Management Limited ("FIL"). The S&P 500® NUK (the “Index”) is a product of SPDJI and/or affiliates and has been licensed for use by FIL. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P and their respective affiliates or their third party licensors (collectively “SPDJI Entities"), make no representation regarding the advisability of investing in such product.

The funds described herein are indexed to an MSCI index. The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which the funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with Fidelity and any related funds.