FTSE trackers over-exposed to commodities

Recent changes in the index of the UK’s 100 leading firms have given the index a 36% exposure to commodity related companies, which DigitalLook.com says could have major implications for investors in tracker funds. Andy Yates, director of DigitalLook.com, explains: “Tracker funds are perceived to be lower risk investments as they offer instant diversification across industry sectors.” “Private investors need to examine just how comfortable they are with tying the fortunes of their portfolio to the movement in commodity prices.” A year ago, approximately 26% of the FTSE 100 was made up of...