If you go to www.trustnet.com and type 'tracker' into the search you will get over 150 tracker funds. The secret then is to spread your cash as thinly as possible around the world - say £1000 in each fund to diversify risk.

I would look at Fidelity's MoneyBuilder UK Index. The Annual Management Charge is 0.1% per annum, which is about as low as it gets. The iShares ETF's offered by Barclays Global Investors are worth looking at.

Pay some attention when comparing trackers, as the difference in performance can be quite wide - this is down to tracking error. In theory, the return from a tracker fund should be Return of Index minus Charges minus Tracking Error.

However, different funds Track their respective Indexes in different ways - i.e. full replication, partial replication, or stratified sampling (often using Derivatives). Full Replication of the index is an expensive process (due to trading costs), and you pay more for the priviledge.

Rgds
Neil.

Hi,

I moved here from the USA last year and am figuring out how to invest here. I like ISAs - we don't really have an equivalent there. I believe I know what to invest in but not who to invest through.

I have a cash (mini) ISA for 2006 through Barclays just because they are my bank and I was in a hurry. I have looked into their stocks and shares minis to add for 2006 but their fees are giant! (0.25% twice per year plus £12/trade plus closure fees, etc.). Their brokerage also seems very expensive (at £9+VAT quarterly and £12/trade, etc.).

So. . . who would you recommend buying an ISA through? Are you suggesting to buy directly from Fidelity for instance?

(Any advice on choosing a broker would also be appreciated. I have Ameritrade in the US - trades are $13 and there are no other fees. Is there some similar, on line, bare bones, discount broker here?)

Cheers,
-Ty

Hi Ty,

I've moved your post to a new thread on the same board at:

http://uk.messages.finance.yahoo.com/Finance/Your_Money/fo rumview?bn=UKF-SavingsInvestments

under "Best equity ISA providers?":

http://uk.messages.finance.yahoo.com/Finance/Your_Money/th readview?bn=UKF-SavingsInvestments&tid=34&mid=34&tof=1&m=tm& rt=2

Some great stuff there Neil - really excellent. That Fidelity's MoneyBuilder UK Index looks a bit of a find!!

I'll take a look at the ishares as well, and see if i can get an ISA that'll hold both these - I'm keen to gain a much smaller exposure to emerging markets, and this could be another option in that mix