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Low cost index trackers that will save you money

This is our latest update on the best low cost index trackers available to UK Investors. Note: We don’t include platform exclusive funds – they’re generally not a good deal overall. 

Low costs – that’s the name of the game for passive investors. Performance is unpredictable and elusive, but costs are nailed on. They nibble away at your returns like a satanic mouse – harmless enough at first, until you realise all your cheese has gone.

As Morningstar puts it:

If there’s anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make a better decision.

That’s why I try to leave no penny un-pinched when searching for cheap funds.

High cost funds gobble returns

As a passive investor, I concentrate mostly on index funds and Exchange Traded Funds (ETFs). That’s because they are the simplest cut-price vehicles available. However, some asset classes aren’t well served by index trackers, so I’m happy to use low cost active funds to fill the breach.

My picks are based purely on price as measured by the Ongoing Charge Figure (OCF). There are other factors to consider when buying a fund (like tracking error, liquidity, and size) so it’s always worth reading any documentation to make sure it fits your bill.

Identifying tickers or ISIN codes are given in brackets. If there are any other wrinkles worth mentioning, I’ll throw them in along the way.

Finally, if you’re looking for the cheapest place to buy and hold these funds then take a butcher’s at our online broker comparison table.

The UK’s best low cost index trackers

Right, let’s grab some bargains!

Note: Anything not labelled ETF or ETC will be an index fund. Codes are given for accumulation funds variants where available.

UK large cap equity


  • HSBC FTSE All Share Index Fund Institutional (GB0030334345) OCF 0.02%

Next best

  • Fidelity Index UK Fund P (GB00BJS8SF95) OCF 0.06%
  • HSBC FTSE All Share Index C (GB00B80QFX11) OCF 0.06%

UK mid cap equity


  • Vanguard FTSE 250 ETF (VMID) OCF 0.1%

Next best

  • L&G UK MID Cap Index Fund I (GB00BQ1JYX87) OCF 0.14%
  • Xtrackers FTSE 250 ETF (LU0292097317) OCF 0.15%

UK small cap equity

There are no good tracker options in the UK small cap asset class for DIY investors. Of the funds listed below, the iShares ETF is more of an expensive FTSE 250 tracker, and the rest are active funds.


  • Schroder Institutional UK Smaller Companies (GB0007893984) OCF 0.52%

Next best

  • Cavendish Opportunities Fund C (GB00B9F9Z985) OCF 0.65%
  • Baillie Gifford British Smaller Companies B (GB0005931356) OCF 0.67%

UK value equity


  • 7IM UK Equity Value Fund C (GB00BWBSHV64) OCF 0.35%

Next best

  • Vanguard FTSE UK Equity Income Index (GB00B59G4H82) OCF 0.22%
  • WisdomTree UK Equity Income ETF (WUKD) OCF 0.29%
  • SPDR S&P UK Dividend Aristocrats ETF (UKDV) OCF 0.3%

The 7IM fund takes the top spot because it’s the one UK tracker that explicitly follows a value methodology. The remainder are high-yielding funds, not true value funds. A high-yielding fund is a distant cousin of value and not always a pretty one at that. Pure value funds are available in the UK through Dimensional Fund Advisors, but only via an associated IFA who will charge you fees.

World equity – developed world and emerging markets (total world)


  • HSBC FTSE All-World Index Fund C (GB00BMJJJG09) OCF 0.18%

Next best

  • Vanguard Lifestrategy 100% Equity Fund (GB00B41XG308) OCF 0.22%
  • Vanguard FTSE Global All Cap Index Fund (GB00BD3RZ582) OCF 0.24%
  • Fidelity Allocator World Fund Y (GB00B9777B62) OCF 0.25%
  • Vanguard FTSE All-World ETF (VWRL) OCF 0.25%

Vanguard Lifestrategy and Fidelity Allocator invest in other index trackers. Fidelity invests in REITs and small caps.

World equity – developed world only


  • Fidelity Index World Fund P (GB00BJS8SJ34) OCF 0.12%

Next best

  • Lyxor Core MSCI World ETF (LCWL) OCF 0.12%
  • L&G Global 100 Index Trust I (GB00B0CNH056) OCF 0.14%
  • HSBC MSCI World ETF (HMWO) OCF 0.15%

World ex-UK equity


  • L&G International Index Trust I (GB00B2Q6HW61) OCF 0.13%

Next best

  • Vanguard FTSE Dev World ex-UK Equity Index (GB00B59G4Q73) OCF 0.15%
  • Aviva Investors International Index Tracking SC2 (GB00B2NRNX53) OCF 0.31%
  • Xtrackers FTSE All-World ex-UK (XWXU) OCF 0.4%

You can also pick ‘n’ mix using individual US, Europe ex-UK, Japan, and Pacific ex-Japan trackers.

World value equity


  • Vanguard Global Value Factor ETF (VVAL) OCF 0.22%

Next best

  • Xtrackers MSCI World Value Factor ETF (XDEV) OCF 0.25%
  • iShares Edge MSCI World Value Factor ETF (IWVL) OCF 0.3%
  • Lyxor SG Global Value Beta ETF (SGVL) OCF 0.4%

All factor based investing is effectively straying into active management territory – you hope that a subset of the market can outperform – the key is to choose products underpinned by sound financial theory, a verifiable set of rules and a commitment to low costs.

World small cap equity


  • L&G Global Small Cap Index Fund (IE00BG0VVG79) OCF 0.2%

Next best

  • iShares MSCI World Small Cap ETF (WSML) OCF 0.35%
  • Vanguard Global Small-Cap Index Fund (VIGSCA) OCF 0.38%

Emerging markets equity


  • iShares Cores MSCI Emerging Markets IMI ETF (EMIM) OCF 0.18%

Next best

  • Fidelity Index Emerging Markets Fund P (GB00BHZK8D21) OCF 0.2%
  • Xtrackers MSCI Emerging Markets Index ETF (XMME) OCF 0.2%
  • Amundi ETF MSCI Emerging Markets ETF (AUEG) OCF 0.2%

Socially responsible investing


  • L&G UK Equity ETF (IE00BFXR5R48) OCF 0.05%

Next best

  • Xtrackers ESG MSCI World ETF (XZW0) OCF 0.2%
  • Royal London Emerging Markets ESG Leaders Equity Tracker (GB00BZ8FWL65) OCF 0.3%
  • iShares Sustainable MSCI Emerging Markets SRI ETF (SUSM) OCF 0.35%



  • Lyxor FTSE UK Quality Low Vol Dividend (DOSH) OCF 0.19%

Next best

  • Invesco Global ex UK Enhanced Index Fund Y (GB00BZ8GWR50) OCF 0.23%
  • Invesco UK Enhanced Index Fund Y (GB00BZ8GWW04) OCF 0.23%
  • HSBC Multi Factor Worldwide Equity ETF (HWWA) OCF 0.25%
  • Amundi ETF Global Equity Multi Smart Allocation Scientific Beta ETF (SMRU) OCF 0.4%
  • Lyxor JP Morgan Multi-Factor World Index ETF (LYXW) OCF 0.4%

All factor based investing is effectively straying into active management territory – you hope that a subset of the market can outperform – the key is to choose products underpinned by sound financial theory, a verifiable set of rules and a commitment to low costs.

Property – UK


  • iShares UK Property ETF (IUKP) OCF 0.4%
  • iShares MSCI Target UK Real Estate ETF (UKRE) OCF 0.4%

Next best

  • No index fund alternative

Property – global


  • L&G Global Real Estate Dividend Index I (GB00BYW7CN38) OCF 0.2

Next best

  • iShares Global Property Securities Equity Index Fund D (GB00B5BFJG71) OCF 0.22
  • Amundi ETF FTSE EPRA/NAREIT Global ETF (EPRA) OCF 0.24%
  • SPDR Dow Jones Global Real Estate ETF (GBRE) OCF 0.4%

The SPDR ETF includes emerging markets exposure.



  • L&G All Commodities ETF (BCOM) OCF 0.15%

Next best

  • Invesco Bloomberg Commodity ETF (CMOD) OCF 0.19%
  • Lyxor Commodities Thomson Reuters/CoreCommodity CRB TR ETF (CRBL) OCF 0.35%



  • iShares Physical Gold ETC (SGLN) OCF 0.25%
  • ETFS Physical Swiss Gold ETC (SGBS) OCF 0.25%
  • db Physical Gold ETC (XGLD) OCF 0.25%

Gold trackers are Exchange Traded Commodities (ETCs).

UK Government bonds – intermediate duration


  • Lyxor Core FTSE Actuaries UK Gilts (GILS) OCF 0.07

Next best

  • Vanguard UK Government Bond ETF (VGOV) OCF 0.12%
  • SPDR Barclays UK Gilt ETF (GLTY) OCF 0.15%
  • Vanguard UK Gov Bond Index (IE00B1S75374) OCF 0.15%
  • L&G All Stocks Gilt Index Trust I (GB00B8344798) OCF 0.15%

UK Government bonds – long


  • SPDR Barclays Capital 15+ Year Gilt ETF (GLTL) OCF 0.15
  • Vanguard UK Long-Duration Gilt Index fund (GB00B4M89245) OCF 0.15%

UK Government bonds – short


  • Lyxor FTSE Actuaries UK Gilts 0-5Y ETF (GIL5) OCF 0.07

Next best

  • JPMorgan BetaBuilders UK Gilt 1-5 ETF (JG15) OCF 0.1%
  • SPDR Barclays Capital 1-5 Year Gilt ETF (GLTS) OCF 0.15
  • iShares UK Gilts 0-5 ETF (IGLS) OCF 0.2%

UK Government bonds – index-linked


  • Lyxor FTSE Actuaries UK Gilts Inflation-Linked (GILI) OCF 0.07

Next best

  • Vanguard UK Inflation Linked Gilt Index fund (GB00B45Q9038) OCF 0.15%
  • L&G All Stocks Index Linked Gilt Index Trust I (GB00B84QXT94)  OCF 0.15%
  • iShares Index Linked Gilt Index Fund D (GB00B83RVT96) OCF 0.16% 

International bonds hedged to £ (government and corporate)


  • iShares Core Global Aggregate Bond ETF (AGBP) OCF 0.1% 

Next best

  • Vanguard Global Short Term Bond Index (IE00BH65QG55) OCF 0.15%
  • Vanguard Global Bond Index (IE00B50W2R13) OCF 0.15% 
  • iShares Global Government Bond ETF (IGLH) OCF 0.25%
  • Xtrackers Global Sovereign ETF (XGSG) OCF 0.25%

All hedged back to Sterling.

International inflation-linked bonds hedged to £


  • Xtrackers Global Inflation Linked Bond ETF (XGIG) OCF 0.25% 
  • Royal London Short Duration Global Index Linked Fund M (GB00BD050F05) OCF 0.25%

Next best

  • L&G Global Inflation Linked Bond Index I (GB00BBHXNN27) OCF 0.27%
  • Smith & Williamson Global Inflation Linked Bond Fund X (IE00B7RG6563) OCF 0.32%
  • Royal London Global Index Linked Fund Z (GB00B53R4H74) OCF 0.39%

All hedged back to Sterling. Royal London and Smith & Williamson funds are active.

UK Corporate bonds


  • L&G Sterling Corporate Bond Index Fund I (GB00B4M01C47) OCF 0.14%

Next best

  • L&G Short Dated Sterling Corporate Bond Index Fund I (GB00BKGR3H21) OCF 0.14%
  • Vanguard UK Investment Grade Bond Index (IE00B1S74Q32) OCF 0.15%
  • iShares £ Ultrashort Bond ETF (ERNS) OCF 0.09%

The iShares ETF doesn’t take top spot because it’s a specialist ultrashort bond tracker with a duration of a third of a year. Not for general use but could be handy for deaccumulators.

Concluding thoughts on low cost trackers

If you’re new to passive investing then it might seem like you now have a lot of decisions to make after reading that lot.

This piece on designing your own asset allocation will help you construct your own portfolio. If you want a quick short-cut then you can do a lot worse than picking a fund-of-funds instant portfolio solution.

We only update this post periodically. Please bear in mind the quoted OCFs may date as fund groups fight their turf wars by undercutting each other (hurrah). But this list should still prove an excellent starting point for your research.

And if anyone comes across any better index tracker options I’d love to hear about them in the comments below.

Take it steady,

The Accumulator

Note: Some comments below may refer to an older collection of low cost index trackers. Scroll down for the latest thoughts.

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{ 663 comments… add one }
  • 549 Gizzard July 13, 2017, 3:30 pm

    I notice that the iShares UK Property ETF (UKRE) contains a mixture or REITs and index linked bonds; the latter in order to help negate the effect of REIT gearing and thereby better reflect the actual returns of UK property. Does anyone have any opinions on whether this ETF is a better/worse proposition than the iShares IUKP ETF?

  • 550 Hariseldon July 13, 2017, 6:31 pm


    I must admit I have not come across UKRE before. It seems to hold around a third of its assets in Index Linked Gilts.

    My first thought is that you could hold a mixture of IUKP and INXG (Index linked Gilts charges are .25% against .4% for the property ETFs) its cheaper and you could adjust the balance to your own judgement.

    Given that Index Linked Gilts are priced to give a negative return I can’t say I find them attractive.

    If you want a less geared exposure to property than there are property funds that offer just that but they can struggle with liquidity. The REIT is at least liquid and clearly the management judge gearing to be sensible and to hold them but try to undo the borrowing judged to be prudent by the management doesn’t seem to make sense.

  • 551 StephenE July 14, 2017, 5:01 pm

    I’m reading Investing Demystified and looking at the ‘if you want to get more adventurous’ options around adding further Government and Corporate bonds to the returns generating portfolio component.

    Lars’s advice is to add an emerging markets government bond tracker, and add exposure to sub-AA rated developed world Government bond funds.

    I’m struggling to find any good options for the sub-AA Govt bonds, it looks very complicated to put this together. The only products I can see that come close to this are the db x-trackers II iBoxx Sovereigns Eurozone Yield Plus UCITS ETF, and Amundi ETF Govt Bond Lowest Rated EuroMTS Investment Grade UCITS ETF (though this may be subject to withholding tax).

    Any ideas on how to handle this, or should I just avoid the whole approach as overly-complicated?

  • 552 The Accumulator July 15, 2017, 3:54 pm

    Hi Stephen, I think this is overly complicated. ‘Adventurous’ is euphemism for ‘Prepared to take risk for higher expected returns’. Not the fruitiest euphemism of all time but there you go. Anyway, I think risk should be taken on the equities side while bonds should be a safe haven of domestic, high quality government bonds (i.e. gilts for UK investors) or £-hedged global, high quality government bonds if you really want to mix it up.

  • 553 The Accumulator July 15, 2017, 4:31 pm

    @ Atlantic Span & Gregory – I’ve put a note in the Value factor section covering why VVAL makes the list. Thanks for raising this. I have nothing against active management when the objective and methodology is clear and the product comes with a rock bottom price tag, but you’re absolutely right, it should be highlighted.

  • 554 Adrian July 15, 2017, 7:21 pm

    I’m looking to put £5K into a share dealing account and leave it there a few years – making one trade in an ETF that tracks US equity. Some share dealing accounts only charge for the trade which seems to me cheaper than paying .2 to .5 annual charge for a fund platform. But I read somewhere that most platforms would charge a 1%+ forex fee which would negate any savings from paying a platform charge. Is this the case?

  • 555 The Accumulator July 15, 2017, 8:07 pm

    Generally that would apply to an ETF bought on foreign exchanges. I wouldn’t expect to pay that for a US equity ETF bought on the LSE. Check the charges on your chosen platform to be sure though.

  • 556 Leon July 22, 2017, 8:34 pm

    Hi all,

    I’m a newbie and this is my first post. I’ve been reading for a few years now but have until now, for one reason or another, put off creating my own “slow and steady”portfolio. Having finally come around to doing it i’m finding myself struggling and must ask for your help. But before that thanks! I have found this, and many other posts really useful and helpful.

    On to the issue at hand then. I’m trying to get together a traditional 60/40 portfolio and have been following Tim Hale’s guidance described in Smart Investing. Contrary to Tim’s advice however, in an attempt to reduce OCFs, I’m looking to use one total world equity tracker instead of a variety of funds to cover developed, emerging, and value markets as described in the “Total world equity trackers 4 U” post. I’m edging towards selecting the Vanguard FTSE All-World UCITS ETF (GBP) | VWRL but am unsure if I should supplement it with anything else. Any views on this would be appreciated.

    Further to this I’m getting confused with which bonds to select. I get the point about GILTS and index-linked bonds but am struggling with the terminology in the post. I’m trying to identify and select a “Bonds (AA short dated 0-5 years)” fund and an “Index linked bonds (AA short dated 0-5 years)” as described in the book. Could anyone confirm that the following (described in the post above) are appropriate:
    – Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF – D-GBP | GIL5;
    – Lyxor FTSE Actuaries UK Gilts Inflation-Linked

    Any help anyone can give me on this would be most appreciated (and any other advice on really!).

    Many thanks,


    PS: my “slow and steady” at the moment is looking as such:
    – Total world equity: Vanguard FTSE All-World UCITS ETF (GBP) | VWRL (OCF=0.20),
    – REIT: Legal & General Global Real Estate Dividend Index I GBP Acc (OCF=0.20),
    – Bonds (AA short dated 0-5 years)”: Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF – D-GBP | GIL5 (OCF = 0.07);
    – Inflation linked bonds (AA short dated 0-5 years): Lyxor FTSE Actuaries UK Gilts Inflation-Linked (OCF (0.07).

    Total OCF = 0.54

    Smart Investing: http://monevator.com/review-smarter-investing-by-tim-hale/
    Total world equity trackers 4 U: http://monevator.com/how-to-chooose-total-world-equity-trackers/
    How to construct your own asset allocation: http://monevator.com/asset-allocation-construct/

  • 557 The Accumulator July 23, 2017, 1:50 pm

    Hi Leon,

    The 0-5 year ETF you mention is the sort of thing you’re looking for. The 0-5 years refers to the maturity period of the bonds and you won’t find a tracker that is any more ‘short-dated’ than that. The UK gilts part of the name tells you that it invests in UK government bonds and by definition that means it’s AA-rated as that’s the current rating for UK gov bonds. You should be able to verify things like the average rating and maturity on the tracker’s web page.

    The ‘UK government bonds – short’ section in the list above includes some alternatives.

    The inflation-linked product you mention isn’t what you’re looking for. It’s full of long duration bonds which are highly risky.

    Indeed, there aren’t any short dated products available to fulfil Hale’s advice on this point, an issue he skirts around in the book.

    This post explains in more detail:

    There is no way around this at the mo.

  • 558 Leon July 26, 2017, 3:45 pm

    Hi Accumulator,

    many thanks for taking the time to reply and share the info inc. the article on interest rates. As you say, Tim Hale does side step the issue in the book as you say. Having done a bit more digging I haven’t managed to uncover any 0-5 inflation linked bonds as predicted.

    As you recommended in the ‘inflation risk’ article I’ve contacted Legal and General to inquire about the duration of the L&G Global Inflation Linked Bond Index I fund. No news so far…

  • 559 vaiix July 31, 2017, 6:01 pm

    First off – thanks for your website. The process of reading your slow-n-steady portfolio over the years has been intriguing and really captured how to invest for a newcomer like myself.

    I have my eyes set on the following, but any advice would be welcomed. I am unsure how I can meet the min £50 monthly investment that seems to be the norm when I wish to only add 5-8% (depending if I go 60/40 or 80/20) to my smaller asset allocations? I feel the below fully captures the concepts noted by Tim Hale, whilst trying to reduce the complexity.

    Global -48%, if split then UK 5% / ex-UK 43%
    Global small-cap – 12%
    Emerging markets – 12%
    Global property – 8%
    Short bonds – 15%
    Inflation linked bonds – 5%

    I’d like to think it’d be easier to just invest in the Vanguard LifeStrategy – but they seem to hold a home-bias (which has evidence against in the book) and removes the ‘intimacy’ of managing your assets, or at least having the option to.

  • 560 The Accumulator August 1, 2017, 7:22 pm

    Hi Vaiix, rather than investing in every fund monthly, you could invest in each fund every other fund or every quarter to make the minimums. That might mean you invest in all 6 every other month or 3 one month and 3 the next.

    Another option is to simplify the portfolio – drop inflation-linked bonds and small caps for example.
    Btw, if you’re trying to follow Hale’s advice on inflation-linked bonds then please read this piece. The situation is not as simple as Hale makes it look: http://monevator.com/why-uk-inflation-linked-funds-may-not-protect-you-against-inflation/

    Finally, here’s a global tracker that offers a non-home biased alternative to LifeStrategy:
    Vanguard’s FTSE Global All-Cap index fund.

    It includes a touch of emerging markets and small cap. You’d pair it with a bond fund.

  • 561 Rob August 5, 2017, 6:14 pm


    Firstly, thank-you for your huge selection of resources for the amateur investor. Alongside Smarter Investing it’s been invaluable for helping me make my initial investment decisions. I’ve got a 40 year plus horizon on my investments, a decent pension and a secure job so have a very healthy appetite for risk. I’ve designed a 90/10 portfolio allocation with a heavy tilt away from the UK and towards Emerging Markets, with the intention to rebalance towards 50/50 and relocate back into the UK the closer I get to the drawdown beginning.

    This is how I’ve split the return engine:
    40% Global Index – Fidelity Index World W (Tracking Difference 0.05%, TER 0.15%)
    10% Global Value
    10% Global Growth
    20% Emerging Index – iShares Emerging Markets Equity Index UK (TD -0.67%, TER 0.24%)
    20% Emerging Value & Growth

    I was wondering if you could help we with some OEIC recommendations for the non-global index/emerging index elements? I’ve spent the afternoon on MorningStar and FE Trust without much luck for being able to narrow down the options!

  • 562 The Accumulator August 6, 2017, 10:01 am

    Hi Rob, Thank you for that comment, I appreciate it.

    7IM do a bunch of separate value funds – UK, US, Europe and Emerging Markets (this is how to get your EM value fund).

    If you split an index into even growth and value components then you just end up with the balanced index’s result but after adding extra cost and complexity.

    If you think value or growth will perform in the future then you’re best off choosing one or the other.

  • 563 Rob August 6, 2017, 8:15 pm

    Hi Accumulator,

    Thank-you! I think the fact that Intelligent Investor gives you the option of selecting Monevator when asking ‘where did you hear about II from speaks volumes.

    I must admit I’m a little confused by your comment about combining value and growth equally resulting in the index – would you mind clarifying?

    My understanding of the different sectors is that, broadly speaking, value stocks are undervalued large companies (generally those going through a difficult period such as Lloyds Bank), and growth stocks are small companies which could be tomorrows big companies.

    Now the index takes into account medium & large companies that are trading at value – these are stocks that feature in neither value nor growth indexes as they are neither undervalued nor offer potential for lots of future growth.

    Am I understanding this correctly?

  • 564 nobunaga August 8, 2017, 11:35 am

    Could anyone please explain why the dividends generated by Luxor’s GIL5 appear to be so much better than iShares IGLS and SPDR’s GLTS for what looks like the same product, or am I missing the obvious.

  • 565 The Accumulator August 12, 2017, 2:48 pm

    @ Rob – the definitive way that the growth and value segments of a market are created is to split the index in half. The 50% which are cheapest by your definition of value (e.g. price-to-book ratio) make up the value portion and the other 50% go into the growth portion. This is how the academics that authored the value factor theory do it. So if you tilt to value and growth, you’re just holding the market – assuming you tilt evenly.

    That said, there are many different ways to define value and retail products are rarely as rigorous as the academics. You may well be skipping portions of the market via your particular choice of value fund and growth fund. But you’re still likely to be picking products that cancel each other out to some degree. That strategy also deviates from evidence which suggests that value stocks add to returns because they are historically undervalued while growth stocks detract – they are historically overvalued.

  • 566 Fremantle October 17, 2017, 9:57 am

    Fidelity Index UK Fund W Acc has merged with Fidelity Index UK Fund P Acc with an OCF of 0.06%.

    My Bestinvest SIPP handled it for me without issue.

  • 567 Snowman October 20, 2017, 8:19 am

    I see Vanguard have switched to swing pricing rather than using a dilution levy


    Of course it is a myth that selling and buying single priced funds involves no cost to the investor, because by its nature the price is swung up when more people are buying than selling and swung down when more are selling than buying.

    Don’t think swing pricing is fairer myself (although you can argue it both ways) because it’s down to luck whether you are caught on the wrong side of the swing when buying and selling.

    But at least removing the dilution levy will avoid the misunderstanding that the dilution was a charge paid to Vanguard rather than a charge paid into the fund.

  • 568 The Accumulator October 25, 2017, 6:58 pm

    Thank you, Fremantle! Updated.

    And thanks again to you Snowman. Funny how they claim one price enhances transparency yet that was exactly the argument for the dilution levy in the first place.

  • 569 Jim October 26, 2017, 12:10 pm

    Please check this but it seems Fidelity Index Emerging Markets Fund W (GB00BLT1YT76) OCF 0.23% appears to have been replaced with Fidelity Index Emerging Markets P Acc (GB00BHZK8D21) 0.21%.

    Thanks for all your work.

  • 570 The Accumulator October 27, 2017, 12:09 pm

    Thanks Jim! You are spot on. I’ve stopped being lazy and checked the rest of Fidelity’s index funds now. The P class World Index fund now takes top spot in the world equity category too.

  • 571 IanH October 31, 2017, 3:35 pm

    A month ago I invested in the vanguard ftse global all-cap fund. This has a really wide fund base with investments in nearly 5000 stocks worldwide. I just idly had another look at the mix of funds, and blow me if the 3rd ranked item, between MS and FB, isn’t an investment in a firm but a punt on the S&P 500 future market (namely S+p500 Emini Fut Dec17 Xcme 20171215) . I know that KIIDs say that using financial means other than direct investment is part of an fund’s activity, but I imagined they would be used as minor tweaks, for example to keep a fund close to its index when the fund can’t fully replicate its market. But 1.05% of the fund assets on a future – is that typical?

  • 572 Allan October 31, 2017, 7:23 pm

    I have a few silly questions being a newbie to investment:
    I noticed that the funds above are mainly proposed in their accumulation option; I can understand that the passive investor should prefer the accumulation class as there are no reinvesting charges but what happens when you get close to retirement? you tend to gradually buy more of the Income class when you rebalance?
    Also do you discuss in a post the question of taxes? I understand that I can first include for £20k worth of funds in an ISA account and that there will be no taxes on that but what do you do once it is full? is it better to open a SIPP account or a normal account will do?

  • 573 Allan November 1, 2017, 7:17 pm

    a lot of these recommended funds seem not to be available to the common DIY investors, for the Domestic large cap equity alone:
    100K  GBP Minimum Investments for iShares UK Equity Index Fund (UK) D Acc
    1000K GBP Minimum Investments for HSBC FTSE All Share Index C
    100K  GBP Minimum Investments for Vanguard FTSE UK All Share Index Trust

    only the Fidelity Index UK Fund P (GB00BJS8SF95) fits the bill with a required Initial Investment of just 500  GBP

    or did I get it wrong again?

  • 574 The Accumulator November 2, 2017, 2:24 pm

    I’m afraid so, Allan. Ignore those minimums and just check the funds you want are available through the platform you choose. It’s the platform minimum that applies – usually in the realms of £50.

  • 575 The Accumulator November 2, 2017, 2:27 pm

    Allan, re: SIPPs and ISAs: http://monevator.com/sipps-vs-isas-best-pension-vehicle/

    Income vs accumulation. You could do exactly what you suggest. You could stay invested in acc funds and sell the units you need to create income. You could sell out of acc units and buy inc units. It’s largely a question of personal taste and circumstance.

  • 576 Humble Pie November 15, 2017, 1:37 pm

    I was just looking to purchase the L&G Global Inflation linked and the L&G property funds through IWeb but they don’t seem to be available on that platform. I’ve just got off an online chat session with them where I was told that they weren’t available as they are institutional funds.
    Looking further it seems other L&G “I” class funds seem to be available so I can’t help thinking maybe I was given a bum steer.
    Before I phone them up to check again, I was wondering if others have had success in purchasing these funds through other platforms?

  • 577 Fremantle November 22, 2017, 11:45 am

    The Income C class of HSBC FTSE All-World Index Fund C (GB00BMJJJG09) has dropped the OCF to 0.2%, but interestingly the Accumulation C class (GB00BMJJJF91) is lower at 0.19% OCF. Not bad for grabbing a piece of the whole pie in one bite and is where my son’s JISA is invested.

    HSBC don’t make it easy to find their up to date info.

  • 578 Allan November 29, 2017, 7:27 pm

    @Humble Pie

    Did you get anywhere with the “L&G property funds” through IWeb? it could be next on my list.
    did you see that “iShares Global Property Securities Equity Index Fund (UK) D Acc” is available on Iweb? it has similar characteristics.

    also seen on IWeb, the “HSBC FTSE All-Share Index Fund Institutional Accumulation” with an OCF of just 0.03% seems to be available for purchase. I have seen that in a comment but that was too late for me as I had already bought the fidelity equivalent at 0.06% (6 K£). its is probably not worth me swapping now (anyone to help calculate the costs of swapping? I have seen it elsewhere but cannot find the comment anymore)

  • 579 Tim December 14, 2017, 4:28 pm

    This is a super-useful page. I can’t help but think it’d be improved by adding “Multi-asset” as a category in it’s own right though. Sure there’s the “fund of funds” link to the LifeStrategy write-up, but there’s a few more almost as cheap options appeared, with some interesting differences in asset allocation strategy (including the degree of active meddling) and how they target a given level of risk. Ones I’m aware of are Lifestrategy (obviously) at 0.22% OCF, L&G’s Multi-index funds (0.24%-0.31% for “risk levels” 3-7) and Blackrock Consensus 35/60/70/85/100 (0.22%-0.23% OCF). Standard Life’s MyFolio funds sometimes also seem to get mentioned as a contender in this area, but as the OCFs are over 0.8% I haven’t looked any closer at those. None of them are as straightforward no-nonsense easy to understand as Lifestratgey.

    Interestingly L&G also have some Multi-index Income funds (not to be confused with the income units of the regular multi-index funds) which look like an attempt to answer The Greybeard’s “Can ETFs deliver a dependable income for deaccumulating investors” question. 0.31%-0.4% OCF over the various risk levels, yielding 2%-3.5%. Not obviously a slam-dunk compared with The Greybeard’s favoured CTY or the natural yield on a dirt-cheap FTSE tracker or dividend ETF, but surely more diversified and perhaps more sustainable (and they do pay income monthly).

  • 580 The Accumulator December 14, 2017, 7:17 pm

    Thanks very much for the comment Tim, that’s on-the-nose feedback. I am planning to take another look at LifeStrategy competitors (there is a Blackrock Consensus post on the blog somewhere albeit it’s a few years old now) but I’m buried under ‘Monevator The Book’ at the mo.

  • 581 Max January 26, 2018, 3:18 pm

    I just spoke to iWeb and they have the following listed as a Unit Trust – is that correct?

    L&G International Index Trust I (GB00B2Q6HW61) OCF 0.13%



  • 582 Playing with Fire March 1, 2018, 4:08 pm

    HSBC MSCI World ETF (HMWO) has a rather nasty 3% entry and 3% exit fee.

    Worth culling from the list on that basis?

    Vanguard’s VWRL (.25% OCF) seems to do a much better job. Am I missing something?

  • 583 The Accumulator March 1, 2018, 6:26 pm

    Please send me a link to your source Playing With Fire. It would be unprecedented if it does – more likely to be some kind of category error by the platform you’re looking at or maybe some weird institutional variant you’ve found.

  • 584 Brenna March 2, 2018, 4:26 pm

    Please use this link to access the SPDR FTSE All-Share ETF:

  • 585 theta March 12, 2018, 3:27 pm

    On the EM ETF, AUEG has 0.2% OCF but it’s incorporated in France and there’s presumably a higher div tax there than in Ireland, where VFEM with 0.25% OCF is incorporated. I was wondering if the difference in div tax drag, if any, tips the scale in favour of the latter. The fact that they don’t track the exact same index makes it even more difficult to compare.

  • 586 theta March 18, 2018, 11:33 am

    The HSBC MSCI World ETF (HMWO) OCF 0.15% seems to be the cheapest global equity fund of the ones you mention. However, when I checked its performance in the last several years it has consistently lagged considerably other ETFs that track the same index. There seem to be some considerable costs that don’t show in the OCF figure. Can you please take a closer look?

  • 587 Tim April 4, 2018, 10:41 am

    Another interesting entrant to the nebulous “ethical” or at least “sustainability” space recently launched by L&G in January: L&G Future World Equity Factors Index http://www.lgim.com/uk/ad/funds/future-world-equity-factors-index-fund/accumulation/class-i.html . 0.3% OCF isn’t bad, especially considering the multi-factor smart-beta chrome (the cheapest thing in your multi-factor section is 0.4%!). Some info on the index it tracks at http://www.ftse.com/Analytics/FactSheets/Home/DownloadSingleIssue?openfile=open&issueName=AWXWCBF&isManual=False and http://www.ftse.com/products/downloads/climate-balanced-factor-overview.pdf

  • 588 The Accumulator April 6, 2018, 7:52 pm

    Thank you, Tim! I appreciate you taking the time. Will check it out

  • 589 The Accumulator April 6, 2018, 8:00 pm

    @ Theta – It looks fine. See:
    This area is a minefield and it can be tricky to get like for like comparisons. You have to be careful that you’re getting an apples-to-apples match-up across time frame, currency, indices, treatment of dividends… even then the data can be wrong.

  • 590 Tom Denley April 28, 2018, 11:19 am

    Mainly in response to http://monevator.com/why-uk-inflation-linked-funds-may-not-protect-you-against-inflation/ I’ve been looking at adding “International inflation-linked bonds hedged to £” to my portfolio rather than buy into the index-linked UK Government bond funds, which all hold lots of long-dated bonds.

    Of the two cheap funds you suggest, neither seem viable: The L&G Global Inflation Linked Bond Index I has a minimum investment of £1million, and the db X-trackers Global Inflation Linked ETF (XGIG) doesn’t seem to be tradeable, at least not with iweb.

    Looking at the list here: http://www.morningstar.co.uk/uk/fundquickrank/default.aspx?category=EUCA000860 the options are pretty poor. The cheapest one that seems available to the individual investor would be Legal & General Global Inflation Linked Bond Index Fund F Class Accumulation, with a minimum investment of £500, but an eye-watering OCF of 0.51%

    Am I missing something? If not, I think you might want to re-evaluate your selection in this category. Either way, I’d be keen to hear your thoughts.

  • 591 AnalysisParalysis July 19, 2018, 6:27 pm

    Hi, huge thanks along with everyone else for such a great resource; although my word there’s a lot of it: many weeks of reading and digesting!

    Quick question – how did you screen for the cheapest World Ex-UK funds above? I’ve been searching on Morningstar and haven’t found a convenient filter, category or search term to apply. There’s a Europe Ex-UK category but no World Ex-UK.

  • 592 Archer October 9, 2018, 10:34 am

    Hi, I was looking at the Emerging Market Equity Trackers and was particularly interested in the “Fidelity Index Emerging Markets Fund P”. My trading platform is Cavendish Online (hence Fidelity). The OCF is great!!

    But what I noticed for this fund on the platform is that the minimum investment required is £500. That is too steep an amount and would make future top-ups and re-balancing a massive headache. Can anyone who is invested in this fund on Cavendish confirm whether that is correct? The fund is attractive as its got a better tracking than iShares but the minimum amount required is a put-off.

  • 593 eagleuk October 14, 2018, 8:40 pm

    Re:Archer Fidelity Index emerging markets
    You can buy via minimum £50.00 monthly investing plan on the cavendish/fidelity website.The future payments /plan can be cancelled once your purchase is complete.

  • 594 Rob December 9, 2018, 4:49 pm

    Good news: Fidelity Index World Fund P (GB00BJS8SJ34) now has an OCF of 0.12%

  • 595 Craig January 8, 2019, 8:14 pm

    Since my last post I’ve read Lars Kroijer’s book ‘Investment demystified’ and really liked the concept of tracking a global index and balancing this with bonds. I’m approaching 40 so was looking at a 60/40 split. I’m looking at a 15 year time frame so would it be more appropriate to be more aggressive (80/20)? My aim is to hold both funds in an ISA and keeps fees as low as possible. I’m considering a number of potential ways of executing this and would really appreciate your thoughts and feedback.

    Option 1:
    Vanguard FTSE Glb All Cap Idx Inv A £Acc OCF 0.24% (60% allocation) 0.114%
    Vanguard UK Infl-LnkdGltIdx A Grs Acc (Accumulation) OCF 0.15% (40% allocation) 0.06%
    Total 0.174%

    Option 2:
    Fidelity Index World Fund P (GB00BJS8SJ34) OCF 0.12% (60%) 0.072%
    Vanguard UK Infl-LnkdGltIdx A Grs Acc (Accumulation) OCF0.15% (40% allocation) 0.06%
    Total 0.132%

    Option 3:
    L&G International Index I Acc (Accumulation) (excludes UK) 0.13% (50% allocation) 0.065%
    HSBC FTSE All Share Index C Acc (Accumulation) 0.06% (10% allocation) 0.006%
    Lyxor FTSE ActrUKGltInflLnkd(DR)ETF DGBP (GILI) 0.07% (40% allocation) 0.028%
    Total 0.099%

    The Vanguard fund in option 1 is an all Cap and has exposure to emerging markets is that worth the higher fee (0.24) compared to funds which only invest in developed world and large CAP Fidelity (0.12) or L&G (0.13)?

    Is it better to keep costs even lower by having a world ex UK and holding a separate FTSE all share which seems a bit of a bargin at 0.06%?

    Is the Lyxor inflation linked gilt ETF a good alternative to Vanguard inflation linked bond fund, why is it so cheap at 0.07%? Am I missing something fundamental?

    Any other funds your would suggest reviewing?

    Many Thanks

  • 596 The Accumulator January 13, 2019, 6:53 pm

    Hi Craig, your asset allocation is a very personal decision and we can’t really advise you. However, these pieces may help you answer your own question:


    It looks like you’re only considering inflation-linked gilts? Inflation-linked bonds don’t tend to perform as well in recessions as conventional bonds, so you’re losing a diversification opportunity here. Moreover, UK linker funds carry substantial risks that are not obvious at first. Read this: https://monevator.com/why-uk-inflation-linked-funds-may-not-protect-you-against-inflation/

    Piece on the Lyxor ETFs: https://monevator.com/lyxor-core-etfs-very-low-cost-but-beware-some-wrinkles/

    Yes, low cost is generally better but there are diminishing returns. Once you’re saving 0.01% here and there then you’re saving £10 per year on £10,000.

    Personally, I’d want some exposure to emerging markets. The primary consideration is diversification rather than cost (as the cost is reasonable).

  • 597 The Accumulator January 13, 2019, 7:00 pm

    Craig, meant to give you this on constructing asset allocation: https://monevator.com/asset-allocation-construct/

    Sorry for all the reading!

  • 598 The Accumulator January 14, 2019, 9:29 am

    Maths error! Once you’re saving 0.01% here and there then you’re saving £1 per year on £10,000, not £10! Sorry about that. Been up all night worrying about that one 😉

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