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Mark74
Posted: 11 January 2023 15:36:29(UTC)
#1

Joined: 10/06/2016(UTC)
Posts: 8
Hi all,
I'm interested in investing in a UK focused midcap fund. My current funds are mostly American tech stocks.
So I'm wanting to try to balance that out abit.
The funds I've found are the following:

https://www.hl.co.uk/fun...k-mid-caps-accumulation

https://www.hl.co.uk/fun...ex-class-s-accumulation

https://www.hl.co.uk/fun...ex-class-c-accumulation

https://www.hl.co.uk/fun...s-c-accumulation/charts

I've noticed that they are made up of different holdings and slightly different sectors. I'm guessing that their aim is to beat the ftse250 index bench mark.
I'm thinking of picking the one that contains the least amount of tech stocks.
My question is, do you think this is a good strategy? And do you have any alternative funds that are as good or better than the funds I've found?....
I couldn't find a fund that was purely based on the ftse 250....perhaps if there is one that might be a better option as there is a fee to pay for an actively managed fund when the difference might not be much.
Does anyone know of one for comparison.
Thanks in advance for your thoughts.
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Tim D
Posted: 11 January 2023 16:18:03(UTC)
#2

Joined: 07/06/2017(UTC)
Posts: 8,883

Thanks: 33209 times
Was thanked: 24362 time(s) in 7229 post(s)
Er, you seem to have got the wrong idea about some things.

I didn't look at the first active Martin Currie one, but of the other three you have...

- HSBC's FTSE250 index tracker fund

- L&G's UK Index trust - an FTSE AllShare index tracker.

- L&G's UK Mid Cap Index - another FTSE250 tracker.

The FTSE AllShare one won't track the index you're interested in... the AllShare is approx 80% FTSE100 and 20% FTSE250.

Either of the other two are probably perfectly good FTSE250 trackers. And they *are* purely based on the FTSE250; they're not trying to beat the index, just reproduce its performance. If you want to get technical, the L&G one is "FTSE250 ex-IT" where IT = investment trusts (not IT as in "tech"!); not sure about the HSBC one but it makes little difference in practice.

The Vanguard VMID ETF is the other well known FTSE 250 tracker. If you're using HL it'd have the advantage there'd be no extra 0.45%pa platform fee to hold it.

I wouldn't worry about tech exposure. Morningstar reckon's the FTSE250 is just 10% tech and I don't think you'll find any active managers trying to underweight that... it's a common complaint that there aren't enough tech companies to invest in in the UK.
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3 users thanked Tim D for this post.
Guest on 11/01/2023(UTC), Mark74 on 11/01/2023(UTC), Jesse M on 11/01/2023(UTC)
ANDREW FOSTER
Posted: 11 January 2023 17:20:32(UTC)
#3

Joined: 23/07/2019(UTC)
Posts: 8,103
Mark74;253411 wrote:


I've noticed that they are made up of different holdings and slightly different sectors. I'm guessing that their aim is to beat the ftse250 index bench mark.




No their aim is to match the relevent index by holding exactly the same stocks in the same proportions.

All FTSE 250 index stocks will hold (nominally) exactly the same things. That's the whole point.


What you gain from this is they are low charges. The charges will differ slightly from different fund houses.
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