Our guide to index trackers

Index tracking vehicles, in the form of mutual funds and Exchange Traded Products (ETPs), have exploded onto the market in the past few years. The onset of the RDR looks set to continue to fuel this demand. But with rising complexity and choice, how can advisers recommend these products with confidence? 1. Familiarity breeds It may seem obvious, but we are so used to the main UK equity indices that the most important first step of understanding the index being tracked can be overlooked. Fixed income, alternative and commodity indices can be far more complex – and two apparently similar...