Investor Insight: When comparing funds investors need to be wary of what they’re comparing


The Internet is fantastic; it enables anyone to find out virtually anything for almost nothing. There are downsides, such as Uncle Sam knowing more ab
[See the full post at: Investor Insight: When comparing funds investors need to be wary of what they’re comparing]


Really good piece @robert-davies but I wonder where is the best website to compare funds?

I invest in Unit trusts/ETFs/Investment trusts but it is not that easy comparing all three.



Good question to which there is no easy answer. FT Adviser is good but is a subscription service mainly aimed at IFAs. Trustnet, Morningstar and Citywire all have data to varying degrees but none make it easy to compare across different vehicles.


It is a good article because it reminds you to consider what it is you’re comparing and I have to admit that I don’t think I always question this enough.


Your fund is quite different to other trackers as far as I can see because it is weighted towards dividend payers. I think this is a more interesting sort of tracker fund because it doesn’t have to buy every company in the index and over time it should outperform because dividend companies tend to beat growth in the long run.


It makes it more similar to Warren Buffet or Sit John Templeton’s style of investing @Lukas.

I agree its difference makes it interesting because it challenges some of the things I don’t like about trackers.




I wonder why it’s taken so long for weighted tracker funds to take off.

I use trackers and have done so for years. I used to invest in Aberdeen’s US investment trust tracker until they converted it in to a actively managed fund - NAIT (it’s been reviewed on here a couple of times).

It warrants a little bit more investigating, it’s certainly an interesting concept.





I wish I knew. Most people seem content to watch and wait. Which is frustrating because yu need critical mass to get these things to work.


If you buy a ‘Smart Beta’ tracker weighted for dividends, is there not a danger that it will be buying companies that appear to pay high dividends but in reality they’re living on borrowed time and need to cut them/or they’re going bust?

I’m just trying to understand how ‘smart’ they are.