What are tracker funds & why should you invest in them?

But first, let’s explore what tracker funds are and why you should invest in them. What are index tracker funds? Index tracker funds are collective investments that track the movement of a broad market index, such as the FTSE 100 or the S&P 500.

What are index tracker funds?

Index tracker funds are collective investments that track the movement of a broad market index, such as the FTSE 100 or the S&P 500. Tracker funds allow you to diversify your portfolio by spreading a single investment over many different companies and countries at once.

What is a FTSE 100 Tracker Fund?

What is a tracker fund? Tracker funds – also known as “passive” funds – don’t try to beat the market. Instead, they simply try to track its performance. So a FTSE 100 tracker fund copies the composition of the FTSE 100 index, with the goal of delivering the same annual return – at least, before costs are deducted.

What are passive managed tracker funds?

Passively managed tracker funds can include customized indexes for market sectors, segments, and themes. Today, market innovation has resulted in the potential for customized tracker funds which provide for more targeted investments.