Stockes and Shares ISA - FTSE Tracker

I've never dabbled in the stock market before, but currently have some money in savings earning a pittance in interest. It is money I can afford to take a risk on. So, I would like to invest £20k into a stocks and shares ISA.

I've been biding my time, was never going to invest at the frothy heights of the stock market a few weeks ago. But, with big stock market tumbles over the last few days, and potentially more to come with the Cornonavirus impacting business, I want to be in a position to be in a position to proceed if FTSE dips below 7000.

Therefore, I need some help from the financially wise here. Can you advise a stocks and shares ISA which will track the FTSE (and benefit from company dividends), has an easy intuitive online platform and low fees (as I want it to be a dumb investment rather than managed).

Thanks in advance.

First thing first - I’d not put the lot in at once

I find by drip feeding monthly into mine it deals with the peaks and troughs

You can also decide what sort of risk you wish to take - again all relevant - differebt fund’s first different folk

OP; why do you want to track the UK FTSE? Is there a reason you don't want more global exposure, especially to the US?

Vanguard trackers are good.

They have loads - including global ones.

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Originally Posted by Mr Pointy

OP; why do you want to track the UK FTSE? Is there a reason you don't want more global exposure, especially to the US?

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Because first time out I don’t want to compound stock market risks with currency movement risks.

The meteoric US stock market growth in the last 10 years combined with sterling devaluation has made for spectacular return for a UK investor with US stock portfolio, but I’ve missed out on that, and don’t want to bet on it continuing.

I’ve got a mix of trackers for Uk ,us, emerging markets and small cap, mainly Fidelity but the odd vanguard. All under the Cavendish umbrella which has low rates.


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Originally Posted by noTAGlove

Because first time out I don’t want to compound stock market risks with currency movement risks.

The meteoric US stock market growth in the last 10 years combined with sterling devaluation has made for spectacular return for a UK investor with US stock portfolio, but I’ve missed out on that, and don’t want to bet on it continuing.

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Err... Ok. Vanguard do a range of UK focused funds, both managed & trackers:
https://www.vanguardinvestor.co.uk/w...all-products#p

The web platform is easy to use & the charges very competitive. Alternatives are the usual Hargreaves Lansdown (out of favour with many at the moment & expensive), AJ Bell & Interactive Investor. There are numerous funds you can access via these platforms.

If you want more spectacular performance (ie risk) maybe look at Fundsmith & Intelligent Money PH Equity (diametrically opposite what you are asking for though).

Given that the stock market is pretty high at the moment (notwithstanding the significant drop today due to Coronavirus fears) and the general economic outlook, I would not be making that sort of investment right now.

Attempting to time the market with a lump sum in a tracker right now is high risk.

Something like Personal Assets Trust (PNL) might be better suited to you.

If it is a tracker choose the cheapest. I am using the AJBell platform but considering switching to Vanguard in search of lower costs.

I have recently bought fidelity world index p and HSBC all-world c and iShares UK equity index and s&p500 because I thought at the time they were the cheapest/best value for tracking those indexes.

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Originally Posted by vortgern

Attempting to time the market with a lump sum in a tracker right now is high risk.

Something like Personal Assets Trust (PNL) might be better suited to you.

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It's not about timing, it's about time. So the saying goes.

Investing for the long haul will generally reap rewards.

I'm a bit anxious about my own investments, being 57 & maybe needing to draw on them in the next few years. The last 3 years has been a roller coaster.

However the cash I've invested in my 10 year old son's & my 18 year old daughter's SIPPs is pretty certain to reap huge rewards in 45 years & 37 years respectively (under current legislation). I just keep trickling in about £100 pcm each into their accounts regardless of the ups & downs.

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Originally Posted by trident-7

It's not about timing, it's about time. So the saying goes.

Investing for the long haul will generally reap rewards.

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Agreed if the OP drip feeds into a tracker he will benefit from pound cost averaging and from time in the market - but that wasn’t what he was proposing.

If OP invests his £20K lump sum in full at the wrong time - and he has admitted he is trying to time the market - it could take him years just to make good his losses.

If OP is happy to drip feed then a tracker is a reasonable idea. If he wants to invest a £20K lump sum it would be a rollercoaster of a first investment at best.

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Originally Posted by vortgern

Agreed if the OP drip feeds into a tracker he will benefit from pound cost averaging and from time in the market - but that wasn’t what he was proposing.

If OP invests his £20K lump sum in full at the wrong time - and he has admitted he is trying to time the market - it could take him years just to make good his losses.

If OP is happy to drip feed then a tracker is a reasonable idea. If he wants to invest a £20K lump sum it would be a rollercoaster of a first investment at best.

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Completely agree. If it was that easy to time the markets we'd all be very rich. Actually those were the very words spoken to me by a guy from HL a few years back

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Originally Posted by noTAGlove

I want to be in a position to proceed if FTSE dips below 7000.

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Well, three days of consecutive falls and the FTSE100 is at about 6985, so did you jump in?

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Originally Posted by gary1064

Well, three days of consecutive falls and the FTSE100 is at about 6985, so did you jump in?

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I think it will drop to around 6500, but rest assured it will recover simply because the fundamentals are basically ok.

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Originally Posted by Andyg

I think it will drop to around 6500, but rest assured it will recover simply because the fundamentals are basically ok.

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Unless Bernie Sanders becomes POTUS.

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Originally Posted by gary1064

Well, three days of consecutive falls and the FTSE100 is at about 6985, so did you jump in?

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Nope. I think I’ll wait until the bad news stops coming. I think the market will keep falling until the good news outweighs the bad, which doesn’t appear anytime soon.

All this talk about shutting down UK cities will cripple business. Better that than 400,000 dead.

Strange to think the FTSE 100 is now once again lower than it was in 1999. Taking out the benefit of dividends reinvested etc, imagine the value of your home being now worth what it was in 1999.

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Originally Posted by Devonian

Strange to think the FTSE 100 is now once again lower than it was in 1999. Taking out the benefit of dividends reinvested etc, imagine the value of your home being now worth what it was in 1999.

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Cycles. Imagine if you bought Apple shares in 1988 instead of property.

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Originally Posted by Devonian

Strange to think the FTSE 100 is now once again lower than it was in 1999. Taking out the benefit of dividends reinvested etc, imagine the value of your home being now worth what it was in 1999.

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I was saying to someone last week the same about the FTSE100 level, compared to the turn of the century, but I think the impact of dividends is significant. As you say, house values have (generally) increased significantly but, in the same way dividends enhance the return on shares, the return on property is reduced (to some extent) by the holding costs (council tax, repairs, etc.).

Stocks had a good run in the 90s whilst property went sideways.

I know FA about investing, but in a time of uncertainty, would gold be a good bet (I also don't know how the price of golf is ATM).

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Originally Posted by hogthrob

I know FA about investing, but in a time of uncertainty, would gold be a good bet (I also don't know how the price of golf is ATM).

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I believe gold is currently at a seven year high so that ship has sailed at the moment.


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Originally Posted by Andyp1973

I believe gold is currently at a seven year high so that ship has sailed at the moment.


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Or has it.