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Low-cost tracker - how best to buy?

Index tracking funds and ETFs
GeoffF100
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Re: Low-cost tracker - how best to buy?

#336685

Postby GeoffF100 » August 28th, 2020, 7:24 pm

Alaric wrote:
dealtn wrote:The gilt market is poorly set up for retail accounts, that's for sure, and I doubt much has changed for the better in the 5 years or so since I left it.

The DMO quotes prices available to private investors.

https://www.dmo.gov.uk/data/pdfdatarepo ... tCode=D10B

Thank you for that. The link gives the dirty prices. When I last looked, the DMO site directed me to another site and I had to log in to get that information. The index linked gilt that I currently hold has a spread of about 0.25%. That is about what I observed when selling in my Youinvest SIPP and buying the same stock in my iWeb dealing account.

As far as the negative real yields are concerned, the inflation rate at which the index linked gilts break even with the conventional gilts is given here:

https://www.bankofengland.co.uk/statistics/yield-curves

The implied inflation rate is between 2.5% and 3.5%, depending on the remaining term of the gilt. That may turn out to be high, but insurance costs money. The index linked gilts with a coupon of 0.125% have the advantage that there is very little income tax to pay.

1nvest
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Re: Low-cost tracker - how best to buy?

#336745

Postby 1nvest » August 29th, 2020, 11:27 am

Comparing costs versus total return performance since 2015 ...
Image
Vanguards Lifestrategy 100 was near identical to 50/50 FT All Share and US stock (S&P500), as did SWDA and Vanguard World

The lowest cost was to 50/50 FT All share (or FT100) and S&P500, 0.065% yearly expense, but the two clearly deviated so whether the combination of the two aligning with 'World' was coincidental over that period or not ?? I suspect not as much of World is the US and the larger UK FT All Share stocks are broadly diversified across the world (Unilever products for instance sell in 190 countries).

Using data going back to 1972 and World vs FTAS/US looks to be to be 'similar enough' in overall total returns.

1nvest
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Re: Low-cost tracker - how best to buy?

#448121

Postby 1nvest » October 5th, 2021, 5:12 pm

hiriskpaul wrote:Here are the MSCI World (GBP TR) figures I have:

1970	-1.98
1971 12.46
1972 34.39
1973 -13.66
1974 -25.32
1975 56.11
1976 36.37
1977 -8.81
1978 10.61
1979 2.79
1980 19.20
1981 21.61
1982 30.94
1983 37.31
1984 32.16
1985 13.97
1986 39.85
1987 -8.01
1988 28.27
1989 31.36
1990 -30.17
1991 22.89
1992 17.49
1993 26.08
1994 -0.15
1995 22.25
1996 3.42
1997 20.89
1998 23.42
1999 29.39
2000 -6.04
2001 -14.32
2002 -27.26
2003 20.29
2004 7.46
2005 23.04
2006 5.83
2007 7.72
2008 -17.39
2009 16.45
2010 15.87
2011 -4.31
2012 11.42
2013 25.00
2014 12.07
2015 5.45
2016 29.01
2017 12.42
2018 -2.50
2019 23.44


Returns slightly higher than yours, probably because your version may be for the index with a 30% dividend withholding tax.


Comparing to Witan (WTAN) viewtopic.php?p=448109#p448109


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