Trackers- reform, please.



  • The 'Top 10' trackers etc are misleading and, in all honesty, redundant. Anyone who knows anything about the index would, I imagine, steer clear.

    The tracker system should effectively create a mini index, with it reflecting the sum of the current Top 10/Top 25's price at any one time, rather than just 'buy a share of each of the players in those places at that exact moment'.

    I would gladly invest a LOT of money into one of those, but there's no point having the current tracker system.



  • I'd be interested in a tracker that continually held the top 10 players, which swapped them out when players drop out of top 10.

    They'd have to lose the three year rule if they were going to do that and the tracker would have to come embedded with dealing costs and commission.



  • @Denny As people would hold it, without trading, there'd be no commission on trades. So there'd probably be some sort of minor 'handling fee' of 1% a year.

    In all honesty, I'd be fine with no even having buzz from the players in the tracker and just tacking growth.



  • @CleanShirtTrader Surely they could still issue a buzz? Like a FTSE tracker it'll just distribute the underlying dividends. It can be 'rebalanced' once a week to take in to account any changes to the index.


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