Could trackers go off the rails?

Article Abstract:

United Kingdom tracker funds have become popular among institutional and private investors, and attracted 370 million pounds sterling from individual investors in 1st qtr 1998. Trackers initially attracted investors due to their low costs, and later because of their performance. Few active managers are able to outperform the market, and average returns from index funds have been higher than returns from active funds in the 10 years to 1998, according to WM Company. Trackers would not perform so well if the market suffered a correction.

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Tracker tactics

Article Abstract:

UK tracker funds are becoming increasingly popular for personal equity plans (Peps). They have a number of advantages and these include their relatively low cost and the stronger performance that can be obtained by many tracker funds. Investors should consider how accurate the tracker fund is likely to be and which index is to be tracked. Funds specializing in smaller companies have problems in attempting to track indexes accurately, as is true for some foreign tracker funds.

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The benefits of staying active

Article Abstract:

The relative performances of UK tracker and active funds are examined in detail.

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