Best tracker for ISA to profit from crash rebound ?

Jun 21, 2006 6 Replies

Come the great crash when the ftse dives there will be an opp. to buy in at low levels



what is the best ftse tracker (isa capable) or indeed one of those ones you can buy shares in through a stockbroker that do the same



thanks


iShares FTSE UK Dividend Plus

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Do we have any idea how good the managers are at predicting dividends, though? It may be a more efficient vehicle than a normal unit trust, but if it's run by blithering idiots, it won't necessarily outperform one.

tom

They don't predict anything. It's an index tracker. I suggest you read the factsheets

Other related reading -

WM Virgin report on passive vs. active management and style investing

-

What Has Worked in Investing -

Daytona

Only in the most literal sense of the word.

I did. It tracks the FTSE UK Dividend+ Index; and what's that? From the index's factsheet [1]:

"The FTSE UK Dividend+ Index is a yield weighted index designed to select and measure the performance of higher yielding stocks within the universe of the FTSE 350 Index, excluding investment trusts. The FTSE UK Dividend+ Index selects the top 50 stocks by one-year forecast dividend yield."

An index based on *forecast* yield - ie, made up. It's not the managers of the iShares fund doing it, i did misunderstand that, bit it is the Markit Group Ltd - so do we have any idea how good *they* are at predicting dividends?

tom

[1]
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Eh? The answer I gave is correct in all cases.

That surprised me, but on further reading the Markit Group makes use of the I/B/E/S database of broker forecasts.

No doubt that there's some research papers which have evaluated this.

Daytona

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