Interactive Investor Super60

[AndrewInDevon]

I use the Interactive Investor Super60 as a good starting guide to help filter 000s of funds, ETFs and ITs. I don't follow it slavishly, but some things puzzle me. This table shows performance data from Morningstar for two plain vanilla tracker funds - one for UK and one for Japan equities. For each of these it shows the Super60 fund alongside a close alternative (ie same structural wrapper, tracking the same index).

https://ibb.co/sv5vS3g

In both cases the alternative fund has a lower OGC and consistently better performance (probably a function of the lower OGC) than the Super60.

So why would ii propose two funds that are not quite as good as these alternatives?

[Urbandreamer]

Well you are, to be honest, making rather a lot of assumptions.

What is your purpose of investing and your risk tolerance?
For example the table that you linked to has no information about volatility or tracking error.

Does the Fidelity UK fund use physical replication (I seriously doubt it)? What of the IShares fund (I could believe that it does). Is the one with the higher returns "better" or the one that tracks the index more consistently?

Do they even track the index that you have picked?
A quick check shows that the Fidelity fund is tracking the All share, not the FTSE100 as the IShares does.
https://www.ii.co.uk/ii-super-60/fidelity-index-uk
https://www.ishares.com/uk/individual/e ... rough=true

Do you want exposure to the whole market or just the 100 biggest companies?

Can you really compare the two? Is it not at the very minimum the difference between a golden delicious apple (tasteless IMHO) and a russet apple (tastes better but has fur). I know from experience that while I like russet apples, not everyone does.

While such lists may be a good place to start, it's only a start. Dare I point out that you are also assuming that the person who compiled the list is going to make the same assumptions that you do.

The FTSE 100 has a high concentration in a few companies, meaning that anything that effects them will affect the FTSE 100 index more than the All share. Are the returns worth the increased risks? Do you and the compiler of the list share the same opinion? What of others who use the list?

[AndrewInDevon]

Opps, mea culpa! The UK funds do indeed track different indices, my mistake - thanks for highlighting my error.

The Japan funds track the same FTSE Japan TR Index.

[AndrewInDevon]

Opps, mea culpa! The UK funds do indeed track different indices, my mistake - thanks for highlighting my error.

The Japan funds track the same FTSE Japan TR Index.

I am going mad! Both of the funds I have in my table track the FTSE All Share Index. The heading in my table is wrong, it says FTSE100, it should say FTSE All Share.

The relevant iShares fund is...

https://www.ishares.com/uk/individual/en/products/230288/blackrock-uk-equity-tracker-fund-class-d-acc-fund

[AndrewInDevon]

Here is a corrected table - only the title of the UK Fund has changed - both funds track the FTSE All-Share Index

https://ibb.co/nc025Pf