When to Use a Tracker Fund

Investors have poured billions into low-cost passive funds in recent years, but does it always make sense to choose a tracker? Here are some things to consider

Jocelyn Jovene 10 December, 2020 | 9:59AM
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As fees have come down, investors have poured billions of pounds into tracker funds in recent years. Passive investing is now a massive and powerful driver of change in the asset management industry.

Not only has this led to incredible growth in the number of funds on offer to investors, but the increase in competition has helped force fees down. UK investors can now hold a fund that tracks the FTSE 100 for as little as 0.06% - equivalent of 60p for every £1,000 invested.

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Jocelyn Jovene

Jocelyn Jovene  is Senior Editor for Morningstar France

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