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        <title>iShares VII Public Limited Company - iShares FTSE 100 UCITS ETF (LSE:CUKX) Share Price, History, &amp; News | The Motley Fool UK</title>
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	<title>iShares VII Public Limited Company - iShares FTSE 100 UCITS ETF (LSE:CUKX) Share Price, History, &amp; News | The Motley Fool UK</title>
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                                <title>£10,000 invested in a FTSE 100 index tracker at the start of March is now worth…</title>
                <link>https://www.fool.co.uk/2026/03/22/10000-invested-in-a-ftse-100-index-tracker-at-the-start-of-march-is-now-worth/</link>
                                <pubDate>Sun, 22 Mar 2026 09:05:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1664279</guid>
                                    <description><![CDATA[<p>Anyone who invested money in a FTSE 100 index tracker at the start of the month may wish to look away now because returns have been ugly...</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/22/10000-invested-in-a-ftse-100-index-tracker-at-the-start-of-march-is-now-worth/">£10,000 invested in a FTSE 100 index tracker at the start of March is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>It’s fair to say that the UK’s <strong>FTSE 100</strong> index has lost its momentum recently. After rising to near 11,000 in late February, it has plummeted amid geopolitical instability, surging oil prices, and talk of higher interest rates.</p>



<p>Here, I’m going to reveal how much £10,000 invested in a Footsie index tracker at the start of March would now be worth. Let’s crunch the numbers.</p>



<h2 class="wp-block-heading" id="h-the-index-has-tanked">The index has tanked</h2>



<p>There are a number of FTSE 100 <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/tracker-funds-and-index-trackers/">tracker products</a> available today. I’m going to focus on the <strong>iShares Core FTSE 100 UCITS ETF (acc)</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE: CUKX</a>).</p>



<p>I&#8217;ve chosen this one because it&#8217;s quite popular with UK investors. It also reinvests all dividends from Footsie companies meaning that share price performance gives us an idea of total returns (gains plus dividends).</p>



<p>Now, this ETF ended February at a price of 22,040p. So, let’s say an investor was able to buy at that price and they invested £10,000 in it.</p>



<p>Today – roughly three weeks later – that £10,000 would be worth about £9,140 (almost 9% less). Because as I wrote this on Friday (20 March) afternoon, the ETF’s share price is 20,135p.</p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-the-takeaways">The takeaways</h2>



<p>Now, I’m not saying that this is a bad product (it’s a solid product that could be worth considering for a portfolio). Volatility like this is part of investing.</p>



<p>But there are a few key takeaways from these numbers. One is that a simple index tracker which is only focused on one geographic market like this doesn’t guarantee portfolio success.</p>



<p>By including a <a href="https://www.fool.co.uk/investing-basics/what-is-diversification/">range of different</a> ETFs and/or individual stocks in a portfolio, investors could have potentially obtained better returns. I’ll point out that one of my favourite ETFs, the <strong>HANetf Future of Defence ETF</strong> (another product worth considering) is actually up for the month so this could have provided some portfolio protection.</p>



<p>Another takeaway is that it can pay to drip feed money into the market slowly. Had the investor put £3,000 into the Footsie tracker fund at the start of the month instead of £10,000, they could potentially put another £3,000 in today at much lower prices and then another £4,000 at a later date, smoothing out their entry prices (I’m assuming here that they weren’t putting £10,000 into the market regularly).</p>



<h2 class="wp-block-heading" id="h-what-s-next-for-the-ftse-100">What’s next for the FTSE 100?</h2>



<p>Will the FTSE 100 bounce back? I think so – history shows that it’s able to recover from turbulence like this.</p>



<p>However, at this stage, it’s hard to know if we’ll see a ‘V-shaped’ recovery. If the Middle East conflict drags on and oil prices remain elevated, the index could remain under pressure (high oil prices tend to hurt economic growth).</p>



<p>So, I think the key is to remain diversified and think long term (and potentially consider buying opportunities). If you’re looking for ETF and stock ideas for portfolio diversification, you can find plenty of information right here at <em>The Motley Fool</em>.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/22/10000-invested-in-a-ftse-100-index-tracker-at-the-start-of-march-is-now-worth/">£10,000 invested in a FTSE 100 index tracker at the start of March is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Why is the FTSE 100 suddenly beating the S&#038;P 500?</title>
                <link>https://www.fool.co.uk/2026/03/04/why-is-the-ftse-100-suddenly-beating-the-sp-500/</link>
                                <pubDate>Wed, 04 Mar 2026 16:51:47 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1657308</guid>
                                    <description><![CDATA[<p>The UK's blue-chip index has been on fire over the past couple of years, helping it catch up to the S&#38;P 500. But can the hot run continue? </p>
<p>The post <a href="https://www.fool.co.uk/2026/03/04/why-is-the-ftse-100-suddenly-beating-the-sp-500/">Why is the FTSE 100 suddenly beating the S&amp;P 500?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>After years of underperformance versus the <strong>S&amp;P 500</strong>, the <strong>FTSE 100</strong> is finally having its day in the sun. In fact, make that many months in the sun because the UK&#8217;s blue-chip index has been strong for some time now. </p>



<p>This is obviously great for UK investors, many of whom have their ISAs and SIPPs stuffed with FTSE 100 shares. But is this an Indian summer that&#8217;s set to come to a frosty end? Or have we entered a new financial climate altogether?</p>



<h2 class="wp-block-heading" id="h-what-s-going-on">What&#8217;s going on?</h2>



<p>So far in 2026, the FTSE 100 has gained 6.5% while the S&amp;P 500 has dipped 0.9%. However, Footsie companies pay far higher dividends on average, and when we factor those in over the past five years, the two indexes are almost level on a total return basis.</p>



<p>This is some turnaround, though the US index is still the longer-term winner, primarily due to the massive gains from tech stocks like <strong>Microsoft</strong>, <strong>Apple</strong>, <strong>Broadcom</strong>, <strong>Nvidia</strong>, and <strong>Tesla</strong>. The powerful digital revolution that has swept the globe has created stock market juggernauts akin to corporate nations.  </p>



<p>However,&nbsp; after two and a bit years of the AI boom, investors are getting nervous about whether these companies can actually monetise the technology fast enough to justify their massive capital outlays and valuations.&nbsp;</p>



<p>As a result, money has been moving out of Silicon Valley and into ‘old economy’ stocks like banks, utilities, oil majors, miners, and supermarkets. These pay dividends and trade at much cheaper valuations.</p>



<p>Of course, these are exactly the kinds of stocks writers here at <em>The Motley Fool</em> have been championing for years. They have looked fundamentally undervalued for ages and also paid generous dividends. </p>



<p>Moreover, these non-tech firms are seen as AI-resistant. That is, they’re ‘heavy-asset, low-obsolescence’ (HALO) companies insulated from technological disruption.&nbsp;</p>



<p>Global investors are finally starting to wake up and see the (HALO) light!</p>



<h2 class="wp-block-heading" id="h-can-it-continue">Can it continue?</h2>



<p>Of course, the stock market goes in cycles, so rotations from <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/value-stocks-vs-growth-stocks/">growth to value stocks</a> is nothing new. If investors flipped back towards high-growth shares, the FTSE 100 could start underperforming again (at least relative to the S&amp;P 500).  </p>



<p>However, the rapid development of AI technology &#8212; particularly with autonomous agents &#8212; continues to spook investors. So the rotation towards FTSE 100 shares still has legs, in my opinion.</p>



<p>Therefore, investors could consider something like the <strong>iShares Core FTSE 100 UCITS ETF</strong>&nbsp;(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>). As we can see below, this <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/tracker-funds-and-index-trackers/">index tracker</a> has really taken off over the past few months. </p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="2021-03-04" data-end-date="2026-03-04" data-comparison-value=""></div>



<p>This accumulating version of the ETF automatically reinvests any dividends paid by the companies (like <strong>Shell</strong>, <strong>Legal &amp; General</strong>, and <strong>HSBC</strong>) back into the fund. Currently, the FTSE 100 offers a 3% dividend yield, so reinvesting this alongside any share price gains helps the fund grow faster over time.&nbsp;</p>



<p>To my mind, there&#8217;s a rock-solid mix of high-quality dividend stocks in the FTSE 100, ranging from HSBC and <strong>Tesco</strong> to <strong>Aviva</strong> and <strong>Admiral</strong>. </p>



<p>As mentioned, the FTSE 100 could always go out of fashion again. So I would only consider a Footsie index tracker as part of a diversified ISA portfolio that also had a few growth stocks in there. </p>
<p>The post <a href="https://www.fool.co.uk/2026/03/04/why-is-the-ftse-100-suddenly-beating-the-sp-500/">Why is the FTSE 100 suddenly beating the S&amp;P 500?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>£5,000 invested in the FTSE 100 index a decade ago is now worth…</title>
                <link>https://www.fool.co.uk/2026/02/25/5000-invested-in-the-ftse-100-index-a-decade-ago-is-now-worth/</link>
                                <pubDate>Wed, 25 Feb 2026 08:01:26 +0000</pubDate>
                <dc:creator><![CDATA[Ben McPoland]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1653454</guid>
                                    <description><![CDATA[<p>The FTSE 100 index has gone into overdrive over the past two years. What's going on? And is the blue-chip index still worth considering today?</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/5000-invested-in-the-ftse-100-index-a-decade-ago-is-now-worth/">£5,000 invested in the FTSE 100 index a decade ago is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>After years of underperformance, the <strong>FTSE 100</strong> index has suddenly burst into life. Not only that, but its 27.7% total return over the past year dwarfs that from the <strong>S&amp;P 500</strong> (around 13%).</p>



<p>Over five years, the return is also very good &#8212; 61.1% before dividends. </p>



<p>But what about the 10-year return? How much would someone have if they’d invested £5,000 into the FTSE 100 a decade ago? Let&#8217;s find out.</p>



<h2 class="wp-block-heading" id="h-impressive-returns">Impressive returns</h2>



<p>Over the past 10 years, the annualised total return of the FTSE 100 has been 10.1%. The total return includes dividends as well as price gains. </p>



<p>Therefore, a FTSE 100 <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/tracker-funds-and-index-trackers/">index tracker</a> would have turned £5,000 into roughly £13,000. Nice. </p>



<p>The vast bulk of these gains have come more recently, with the index gaining nearly <span style="text-decoration: underline">40%</span> in just two years. A big part of this has been global investors seeking diversification away from the US stock market due to three main reasons.</p>



<p>The first is President Trump&#8217;s unpredictable announcements and policies. Another thing that has boosted the FTSE 100 is its relative immunity to AI disruption &#8212; it&#8217;s packed with cheap non-tech shares that pay generous dividends. </p>



<p>Only around 1% of the index is officially classified as information technology. Most of it consists of banks, miners, oil majors, and pharma giants. These aren&#8217;t in theory threatened by AI, and should even benefit from it.</p>



<figure class="wp-block-image aligncenter size-large"><img fetchpriority="high" decoding="async" width="616" height="373" src="https://www.fool.co.uk/wp-content/uploads/2026/02/Screenshot-255-616x373.png" alt="" class="wp-image-1653554" /><figcaption class="wp-element-caption"><em>Source: iShares</em></figcaption></figure>



<p>In other words, the FTSE 100&#8217;s lack of tech exposure &#8212; long been seen by many as its Achilles&#8217; heel &#8212; has quickly become a strength. By contrast, tech accounts for more than 30% of the S&amp;P 500, helping explain the sudden departure in performance.</p>



<p>Lastly, the FTSE 100 is still quite cheap, at least compared to the S&amp;P 500.</p>



<h2 class="wp-block-heading" id="h-footsie-tracker">Footsie tracker</h2>



<p>So, is the FTSE 100 still worth considering for the next 10 years? I think so, and investors could look at the <strong>iShares Core FTSE 100 UCITS ETF</strong>&nbsp;(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>). </p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="2021-02-24" data-end-date="2026-02-24" data-comparison-value=""></div>



<p>This version is an accumulating ETF, which means dividends are automatically reinvested back into the fund. The trailing yield is currently around 3.1%, but the income growth prospects look strong for the FTSE 100. </p>



<p>According to <strong>AJ Bell</strong>, pre-tax profits across the index in 2026 could exceed £231bn. This should underpin dividends and <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buybacks</a>, which have also helped boost the value of many companies by making them more profitable on a per share basis.    </p>



<p>When I look at the top of the FTSE 100, I see a few firms that should become larger over the coming decade. These include <strong>HSBC</strong>, which has a strong position across fast-growing Asia, and oncology giant <strong>AstraZeneca</strong>. </p>



<p><strong>Rolls-Royce</strong> also has a bright future, with growth opportunities across civil aviation (rising global travel trends), defence, and small modular reactors (SMRs). The stock is pricey right now, but this matters less inside a tracker fund (as it&#8217;s just one of many). </p>



<p>Meanwhile, I&#8217;m convinced that miners will become more valuable in future. Due to surging demand for copper and the lack of new mines, there&#8217;s expected to be a supply deficit for the red metal. </p>



<p>The FTSE 100 is home to mining giants like <strong>Antofagasta</strong>, <strong>Glencore</strong>, <strong>Rio Tinto</strong>, and <strong>Anglo American</strong>. </p>



<p>While a sudden rotation away from value to growth is a risk for the FTSE 100, I think the ETF is worth considering for long-term investors. </p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/5000-invested-in-the-ftse-100-index-a-decade-ago-is-now-worth/">£5,000 invested in the FTSE 100 index a decade ago is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Will 2026 be the year of the ISA stock market millionaire?</title>
                <link>https://www.fool.co.uk/2026/01/03/will-2026-be-the-year-of-the-isa-stock-market-millionaire/</link>
                                <pubDate>Sat, 03 Jan 2026 07:11:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1628046</guid>
                                    <description><![CDATA[<p>Discover why a drop in Cash ISA allowances could supercharge the number of stock market millionaires in the UK from this year.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/03/will-2026-be-the-year-of-the-isa-stock-market-millionaire/">Will 2026 be the year of the ISA stock market millionaire?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>2025 will be a hard act to follow for the global stock market. In the UK, the <strong>FTSE 100</strong> enjoyed its best year since 2009. Share prices are soaring the world over, reflecting hopes of more growth-boosting interest rate cuts over the short term.</p>



<p>The New Year could see further stunning gains as investor confidence booms. But beware: enormous gains like we&#8217;ve seen last year could also prompt a sharp pullback.</p>



<p>Yet I&#8217;m still confident that 2026 could be a pivotal year in creating a new wave of ISA millionaires. And it has nothing to do with how stock markets may perform. What could I possibly be talking about?</p>



<h2 class="wp-block-heading" id="h-investing-taking-over">Investing taking over?</h2>



<p>From April 2027, the annual allowance on the <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/cash-isas/" target="_blank" rel="noreferrer noopener">Cash ISA</a> will be slashed from £20,000 currently to £12,000. We&#8217;re some way off that date, but November&#8217;s announcement has already sparked a wave of panic among UK savers.</p>



<p>Like many Cash ISA users, I don&#8217;t like the plans. Even though I don&#8217;t get anywhere close to using the yearly, I prefer the &#8216;carrot&#8217; instead of the &#8216;stick&#8217; approach when guiding people on how to use their cash.</p>



<p>That said, I understand the government&#8217;s determination to nudge people from low-yielding savings accounts. It&#8217;s already ignited interest in products that could generate higher, and even life-changing, returns. As a stocks investor myself, I think that&#8217;s a good thing.</p>



<p>I&#8217;m hoping 2026 will be the year that a new wave of stock market millionaires emerges.</p>



<h2 class="wp-block-heading" id="h-millionaire-boom">Millionaire boom</h2>



<p>We all dream of making a fortune with share investing. I&#8217;m sure that&#8217;s the reason you&#8217;re here reading this. But it isn&#8217;t a pipe dream, as recent research from Plum shows.</p>



<p>There are currently 5,070 ISA millionaires recognised by HMRC, the number having grown by <span style="text-decoration: underline">more than 1,000%</span> in just seven years. It&#8217;s a list overwhelmingly dominated by Stocks and Shares ISA investors, who&#8217;ve enjoyed the tax benefits also enjoyed by Cash ISA users but have harnessed the wealth-building power of the stock market.</p>



<p>Since 2015, the average annual return on the investing ISA is a whopping 9.64% (according to Moneyfacts). That kind of performance can turn even a relatively modest monthly investment into a seven-figure portfolio over time.</p>



<p>Someone investing £478 a month could generate a £1m pension pot after 30 years, based on that impressive figure.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="1199" height="665" src="https://www.fool.co.uk/wp-content/uploads/2026/01/Stock-market-returns-in-an-ISA.png" alt="Possible returns from a £478 monthly investment in a Stocks and Shares ISA" class="wp-image-1628105" /><figcaption class="wp-element-caption"><em>Possible returns from a £478 monthly investment in a Stocks and Shares ISA. Source: thecalculatorsite.com</em></figcaption></figure>



<h2 class="wp-block-heading" id="h-buying-the-ftse-100">Buying the FTSE 100</h2>



<p>Stock market investing involves higher risk than saving cash. But individuals can buy tracker funds like the <strong>iShares FTSE 100 ETF </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>) to limit volatility and target brilliant returns.</p>



<p>Like any shares-based fund, this product can drop during a broader market downturn. However, by diversifying across the whole <strong><a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/what-is-the-ftse-100/" target="_blank" rel="noreferrer noopener">FTSE 100</a></strong> index, investors can protect themselves from company-, sector- and region-specific shocks.</p>



<p>And the beauty of exchange-traded funds (ETFs) like this is that they offer these risk and reward benefits at very low cost. The yearly management fee on this product is a rock-bottom 0.7%.</p>



<p>Including dividends, this FTSE 100 fund&#8217;s delivered an average annual return of 13% over the last five years. For both new and existing investors, I think it&#8217;s a top option to consider to target stock market riches.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/03/will-2026-be-the-year-of-the-isa-stock-market-millionaire/">Will 2026 be the year of the ISA stock market millionaire?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Up 13.8%! This FTSE 100 index tracker’s crushing the S&#038;P 500 this year!</title>
                <link>https://www.fool.co.uk/2025/09/06/up-13-8-this-ftse-100-index-tracker-is-crushing-the-sp-500-this-year/</link>
                                <pubDate>Sat, 06 Sep 2025 08:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1571226</guid>
                                    <description><![CDATA[<p>The S&#38;P 500’s long been seen as the home of top-performing stocks but in 2025 it’s fallen behind this FTSE 100 ETF.</p>
<p>The post <a href="https://www.fool.co.uk/2025/09/06/up-13-8-this-ftse-100-index-tracker-is-crushing-the-sp-500-this-year/">Up 13.8%! This FTSE 100 index tracker’s crushing the S&amp;P 500 this year!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The<strong> S&amp;P 500</strong>’s failed to deliver the sort of results in 2025 that investors have grown used to over the past decade. Several headwinds have got in the way, from renewed trade tariffs to concerns over Federal Reserve policy. </p>



<p>While American markets have wobbled, an index tracker closer to home has stolen the show.</p>



<p>The <strong>iShares Core FTSE 100 ETF</strong>’s (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE: CUKX</a>) up 13.8% year to date, compared with the S&amp;P 500’s 9.3% gain. That makes it one of the world’s best-performing ETFs so far this year.</p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Its top holdings by weight are a Who’s Who of British blue-chips: <strong>AstraZeneca </strong>(7.81%), <strong>HSBC </strong>(7.39%), <strong>Shell </strong>(7.14%), <strong>Unilever </strong>(5%) and<strong> Rolls-Royce</strong> (4.1%). The expense ratio is a very slim 0.07%, which means most of the returns are passed back to shareholders.</p>



<p>But it&#8217;s worth noting that this year’s stellar rise is unusual and doesn&#8217;t happen often. Since inception, the ETF’s delivered annualised returns of 7.41% &#8212; broadly in line with the average returns of the <strong>FTSE 100 </strong>(when including <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" target="_blank" rel="noreferrer noopener">dividends</a>). </p>



<p>Over a decade, that works out to a cumulative return of 113.5%. Not bad for a low-cost, set-and-forget fund.</p>



<h2 class="wp-block-heading" id="h-a-better-option">A better option?</h2>



<p>Despite the strong showing from the ETF, I find myself more drawn to another fund entirely. The<strong> Scottish Mortgage Investment Trust</strong>’s (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-smt/">LSE: SMT</a>) delivered even stronger gains so far in 2025, up 14.7% year to date. </p>


<div class="tmf-chart-singleseries" data-title="Scottish Mortgage Investment Trust Plc Price" data-ticker="LSE:SMT" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>More importantly, its long-term track record’s far more impressive. Since September 2005, the trust has generated a remarkable 1,274% total return. That&#8217;s equivalent to annualised returns of 14% a year over the past two decades.</p>



<p>Of course, past performance is never a guarantee of future returns. The fund&#8217;s heavy exposure to US tech adds concentration risk and foreign currency risk if the dollar loses value.</p>



<p>But Scottish Mortgage has something that a straightforward FTSE 100 tracker cannot match &#8212; true global diversification.&nbsp;</p>



<p>Yes, the portfolio focuses on high-growth technology names such as <strong>Nvidia</strong>, <strong>Microsoft </strong>and <strong>Meta</strong>. But it also invests in retail innovators including <strong>Meituan </strong>and <strong>MercadoLibre</strong>. Plus, it boasts healthcare plays such as <strong>Moderna </strong>and even private equity holdings including SpaceX and Databricks. </p>



<p>This spread across industries and geographies helps cushion the trust from region-specific risks and exposes it to some of the world’s most exciting businesses.</p>



<h2 class="wp-block-heading" id="h-what-it-means-for-investors">What it means for investors</h2>



<p>The S&amp;P 500‘s long been regarded as the benchmark for equity performance. Yet in 2025, it’s been left behind by a simple FTSE 100 tracker &#8212; and the more adventurous Scottish Mortgage. </p>



<p>That underlines the importance of looking beyond Wall Street when picking stocks. When building a portfolio with a multi-decade outlook, <a href="https://www.fool.co.uk/investing-basics/what-is-diversification/" target="_blank" rel="noreferrer noopener">diversification</a>’s critical to avoid extended losses from concentration risk.</p>



<p>For those eyeing a low-cost way to mirror the performance of the FTSE 100, the iShares ETF seems a sensible option to consider.&nbsp;</p>



<p>But for investors who are willing to embrace a little more risk in exchange for higher diversification and growth potential, I think Scottish Mortgage could be an even better fund to look at over the long run.</p>
<p>The post <a href="https://www.fool.co.uk/2025/09/06/up-13-8-this-ftse-100-index-tracker-is-crushing-the-sp-500-this-year/">Up 13.8%! This FTSE 100 index tracker’s crushing the S&amp;P 500 this year!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>£10,000 invested in a FTSE 100 index fund 5 years ago (with dividends reinvested) is now worth…</title>
                <link>https://www.fool.co.uk/2025/06/06/10000-invested-in-a-ftse-100-index-fund-5-years-ago-with-dividends-reinvested-is-now-worth/</link>
                                <pubDate>Fri, 06 Jun 2025 07:11:30 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1529617</guid>
                                    <description><![CDATA[<p>Over the last five years, investors with money in large-cap FTSE tracker funds have enjoyed strong returns of around 10% a year. </p>
<p>The post <a href="https://www.fool.co.uk/2025/06/06/10000-invested-in-a-ftse-100-index-fund-5-years-ago-with-dividends-reinvested-is-now-worth/">£10,000 invested in a FTSE 100 index fund 5 years ago (with dividends reinvested) is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>I’m not the biggest fan of <strong><a href="https://www.fool.co.uk/investing-basics/understanding-the-market/ftse-100-vs-ftse-250/">FTSE 100</a></strong> index (tracker) funds. That’s because there are plenty of other stock market indexes that have better long-term performance track records than the Footsie.</p>



<p>However recently, the UK stock market index has done pretty well. Here’s a look at how much an investor would have today if they’d chucked £10,000 in a Footsie tracker fund five years ago.</p>



<h2 class="wp-block-heading" id="h-10-a-year">10% a year?</h2>



<p>There are many different FTSE 100 trackers on the market today (including index investment funds and <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/exchange-traded-funds/">exchange-traded funds</a> (ETFs). I’m going to zoom in on the <strong>iShares Core FTSE 100 UCITS ETF GBP (Acc)</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE: CUKX</a>).</p>



<p>The reason I’ve picked this one is that it’s an accumulation fund, meaning that all dividend income&#8217;s reinvested (for further gains).</p>



<p>Additionally, it’s an ETF with super-low fees (the total expense ratio&#8217;s just 0.07%). Often, ETFs have significantly lower fees than index investment funds (especially when you factor in platform charges).</p>



<p>Five years ago, this ETF was trading for £108. Today however, it’s trading for £174.</p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>This represents a gain of 61%, meaning that the initial £10,000 investment would now be worth about £16,100. On an annual basis, that translates to a return of around 10%.</p>



<p>These returns ignore trading commissions and platform charges. But I’m sure you’ll agree, they’re decent. If you can consistently achieve a return of 10% a year, you can potentially <span style="text-decoration: underline">double your money</span> in around seven years. With that kind of return, wealth can be build quickly.</p>



<h2 class="wp-block-heading" id="h-long-term-returns">Long-term returns</h2>



<p>However, before you rush out and invest in a FTSE 100 tracker fund like the one above, there’s an important thing to point out. And that’s five years ago, share prices were depressed due to the coronavirus.</p>



<p>The fact that share prices were low back then has made a big difference to the index’s returns. Normally, returns from the index aren&#8217;t this high.</p>



<p>Recently, I calculated the average return for the FTSE 100 (including dividends) over the last 10 calendar years and it came out at just 6.2%. That’s a little underwhelming, especially when you compare it to returns from other indexes such as the <strong>S&amp;P 500</strong> (around 12.7% a year in US dollar terms).</p>



<h2 class="wp-block-heading" id="h-my-view-now">My view now</h2>



<p>Given the underwhelming long-term returns from the FTSE 100 – which are largely the result of a lack of innovation in the index – I still believe a Footsie tracker isn&#8217;t the best investment out there today. While these tracker funds do have some benefits (they offer exposure to companies trading cheaply and paying big dividends) I think long-term investors are better off considering a global tracker or a US index fund if they’re looking for broad exposure to the market.</p>



<p>An allocation to individual stocks could also be worth considering. Stocks are riskier than index funds, but there’s potential for much higher returns.</p>



<p>Just look at <strong>Amazon</strong> (which I believe is worth considering today while it’s well off its highs). Over the last decade, it&#8217;s delivered a return of about 25% a year, turning a $5k investment into more than $45k.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/06/10000-invested-in-a-ftse-100-index-fund-5-years-ago-with-dividends-reinvested-is-now-worth/">£10,000 invested in a FTSE 100 index fund 5 years ago (with dividends reinvested) is now worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Here&#8217;s why I&#8217;m not worried about a possible stock market crash!</title>
                <link>https://www.fool.co.uk/2025/06/02/heres-why-im-not-worried-about-a-possible-stock-market-crash/</link>
                                <pubDate>Mon, 02 Jun 2025 12:39:15 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1526955</guid>
                                    <description><![CDATA[<p>Talk of a new stock market crash is growing as US-China trade tensions escalate. Should investors carry on or run for the hills?</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/02/heres-why-im-not-worried-about-a-possible-stock-market-crash/">Here&#8217;s why I&#8217;m not worried about a possible stock market crash!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Fresh trade-related tensions have reignited fears of a global stock market crash. Shares prices are in danger as markets contemplate a double whammy of sinking spending and rising costs.</p>



<p>Does this mean investors should avoid UK shares right now? Not necessarily. It all depends on investing goals and the ability to hold their nerve.</p>



<h2 class="wp-block-heading" id="h-costing-money">Costing money</h2>



<p>Buying shares to hold only during the good times can be an expensive strategy, as research from <strong>Alliance Witan</strong> shows.</p>



<p>According to the investment trust, almost a quarter (24%) of investors <em>&#8220;have sold an investment at a loss</em>&#8221; during the last year. The figure stands at nearly one in 10 (actually 9%) for the past six months.</p>



<p>Alliance Witan says investors who&#8217;ve sold at a loss in the last year &#8220;<em>did so predominantly because of a fear that the investment performance would fall further</em>.&#8221; Some 36% of people of the 1,000 people it asked sold up because of this reason.</p>



<p>Meanwhile, 25% of investors said they exited because they &#8220;<em>simply felt it was the right decision for that particular investment at the time</em>.&#8221; Some 11% said they sold due to advice from a friend or relative.</p>



<h2 class="wp-block-heading" id="h-the-patience-pot">The patience pot</h2>



<p>Of course, selling assets to raise emergency cash is unavoidable. But doing so as part of a broader investment strategy can end up costing individuals a large stack of cash.</p>



<p>Analyst Mark Atkinson of investment manager WTW notes that &#8220;<em>investors that stayed invested throughout periods of uncertainty would have experienced higher returns over a long-time horizon than those that made reactive decisions</em>.&#8221;</p>



<p>Research from Alliance Witan backs this up. It shows that individuals who kept their investments during periods of volatility could, after 30 years, have built a &#8216;patience pot&#8217; of around £192,000.</p>



<h2 class="wp-block-heading" id="h-watching-the-ftse-100">Watching the FTSE 100</h2>



<p>The <strong><a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/what-is-the-ftse-100/" target="_blank" rel="noreferrer noopener">FTSE 100</a></strong>&#8216;s long-term performance illustrates why holding on during economic upturns <span style="text-decoration: underline">and</span> downturns can be a lucrative strategy.</p>



<p>The UK&#8217;s premier share index has endured several sharp downturns in the 21st century alone, including the 2008 global financial crisis, the 2016 Brexit referendum and the 2020 worldwide pandemic.</p>



<p>Yet the FTSE has recovered strongly from each of these crises, reaching its current record around 8,871 points earlier this year. Investors who sold their holdings during these episodes would have locked in losses and missed out on the eventual market recovery.</p>



<p>The performance of index trackers like the <strong>iShares FTSE 100 UCITS ETF </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>) illustrates the wisdom of staying invested and riding out any storms. Since its creation in 2010, this <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/exchange-traded-funds/" target="_blank" rel="noreferrer noopener">exchange-traded fund (ETF)</a> has delivered an average annual return of 7%.</p>



<p>Not all shares have risen in value over this period. Some that were in the Footsie at the start have even dropped out of the index altogether. However, funds like this can absorb shocks to specific companies, sectors and regions and still deliver a strong return over time.</p>



<p>Some of this iShares fund&#8217;s many diverse holdings include <strong>Lloyds</strong>, <strong>Diageo</strong>, <strong>Shell</strong>, <strong>Rolls-Royce</strong> and <strong>AstraZeneca</strong>.</p>



<p>Despite its diversified approach, the fund still carries risk like any investment. For instance, its high exposure to fossil fuels could compromise returns as the shift to greener energy accelerates.</p>



<p>But as a generally-low-risk way to target a strong and reliable return, ETFs like this are worth serious consideration.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/02/heres-why-im-not-worried-about-a-possible-stock-market-crash/">Here&#8217;s why I&#8217;m not worried about a possible stock market crash!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Here’s how I’d regularly invest £300 to target £2,000 of monthly passive income</title>
                <link>https://www.fool.co.uk/2024/10/10/heres-how-id-regularly-invest-300-to-target-2000-of-monthly-passive-income/</link>
                                <pubDate>Thu, 10 Oct 2024 04:36:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Retirement Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1399545</guid>
                                    <description><![CDATA[<p>Investing in shares, trusts and ETFs can be a great way to build long-term wealth. Here's one way I could target a healthy passive income today.</p>
<p>The post <a href="https://www.fool.co.uk/2024/10/10/heres-how-id-regularly-invest-300-to-target-2000-of-monthly-passive-income/">Here’s how I’d regularly invest £300 to target £2,000 of monthly passive income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>UK shares have long been a popular asset class for those seeking passive income. Thanks to products like <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/" target="_blank" rel="noreferrer noopener">Individual Savings Accounts (ISAs)</a> and <a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/what-is-a-sipp/" target="_blank" rel="noreferrer noopener">Self-Invested Personal Pensions (SIPPs)</a>, individuals can boost their dividend income by not having to pay a penny in tax either.</p>



<p>These tax-efficient products have large annual allowances. The ISA limit is £20,000, while SIPP holders can typically invest the equivalent of their yearly earnings (up to a maximum of £60,000).</p>



<p>However, investors don&#8217;t have to invest anywhere near this much to eventually become financially independent. Here&#8217;s how just a few hundred pounds a month could eventually generate £2,000+ in passive income</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-compound-miracles">Compound miracles</h2>



<p>A modest regular investment can turn into a large pot over time thanks to the power of compounding. By reinvesting earnings, my investment grows not just from the original amount but also from the accumulated returns. This creates substantial growth over the long term.</p>



<p>With this in mind, what could I make if I regularly invested £300 a month? Here&#8217;s an idea based on different rates of return and investing timescales.</p>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>&nbsp;</td><td><strong>5%</strong></td><td><strong>7.5%</strong></td><td><strong>10%</strong></td></tr><tr><td><strong>10 years</strong></td><td>£46,584.68</td><td>£53,379.10</td><td>£61,453.49</td></tr><tr><td><strong>20 years</strong></td><td>£123,310.10</td><td>£166,119.22</td><td>£227,810.65</td></tr><tr><td><strong>30 years</strong></td><td>£249,677.59</td><td>£404,233.63</td><td>£678,146.38</td></tr></tbody></table></figure>



<p>History shows us that all of these rates of return are possible by investing in global shares. But none of that&#8217;s guaranteed and I could lose money as well as making it.</p>



<p>But let&#8217;s take into account the middle figure of 7.5%. This is around the long-term average of <strong>FTSE 100</strong> shares since the index was created in 1984.</p>



<p>With an investment pot of £404,233.63 after 30 years, I could shift my focus towards dividend-paying stocks to target a regular income. </p>



<p>Assuming I could achieve a 6% dividend yield, I&#8217;d earn £24,254 a year, which translates to just over £2,000 a month (£2,021, to be exact).</p>



<h2 class="wp-block-heading" id="h-where-to-invest">Where to invest?</h2>



<p>Investors have thousands of shares to choose from in the UK and overseas. This makes building a diversified portfolio that provides a stable and decent over time much easier.</p>



<p>But instead of picking individual shares, investors can also choose from a number of investment trusts and exchange-traded funds (ETFs) to achieve the same goal. </p>



<p>These financial vehicles spread their pooled capital across a variety of assets &#8212; and in some cases across asset classes &#8212; to reduce risk and capitalise on different growth opportunities.</p>



<p>With this in mind, I might want to invest in a FTSE 100 tracker fund to target that 7.5% average annual return. The one I&#8217;d probably choose is the<strong> iShares Core FTSE 100 UCITS ETF</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>).</p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>There are many funds like this on the market today. But with a total expense ratio of just 0.07%, this is the most cost-effective one right now.</p>



<p>FTSE 100 trackers like this provide exposure to blue-chip companies with market-leading positions, diverse revenue sources and robust balance sheets. And with a wide selection of constituents including banking giant <strong>Lloyds</strong>, drugmaker <strong>AstraZeneca</strong> and miner <strong>Rio Tinto</strong>, I can enjoy exceptional diversification.</p>



<p>Past performance is no guarantee of future returns. And a lack of appetite for UK shares could impact how much I make from the fund in the coming decades.</p>



<p>But with investor appetite for British stocks recovering, I think this ETF could be an excellent way to target long-term wealth, alongside my portfolio of individually selected shares.</p>
<p>The post <a href="https://www.fool.co.uk/2024/10/10/heres-how-id-regularly-invest-300-to-target-2000-of-monthly-passive-income/">Here’s how I’d regularly invest £300 to target £2,000 of monthly passive income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Is a FTSE 100 tracker fund a good investment for an ISA this year?</title>
                <link>https://www.fool.co.uk/2024/04/05/is-a-ftse-100-tracker-fund-a-good-investment-for-an-isa-this-year/</link>
                                <pubDate>Fri, 05 Apr 2024 08:43:52 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1290028</guid>
                                    <description><![CDATA[<p>FTSE 100 tracker funds have delivered underwhelming returns over the last decade. Is there a better option for long-term investors?</p>
<p>The post <a href="https://www.fool.co.uk/2024/04/05/is-a-ftse-100-tracker-fund-a-good-investment-for-an-isa-this-year/">Is a FTSE 100 tracker fund a good investment for an ISA this year?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The UK’s <strong><a href="https://www.fool.co.uk/investing-basics/understanding-the-market/ftse-100-vs-ftse-250/">FTSE 100</a> </strong>index has had a good run recently. Last month, for example, it jumped about 4.2%.</p>



<p>Is a Footsie <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/index-trackers-vs-managed-funds/">tracker</a> fund like the <strong>iShares Core FTSE 100 UCITS ETF (Acc)</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE: CUKX</a>) a good investment for my ISA though? Let’s discuss.</p>



<h2 class="wp-block-heading" id="h-10-year-performance">10-year performance</h2>



<p>There are many companies in the FTSE 100 that have generated excellent long-term returns for investors.</p>



<p>From technology companies like <strong>Sage</strong> and <strong>RELX</strong> to financial companies like <strong>London Stock Exchange Group</strong> and <strong>3i Group</strong>, there have been some big winners.</p>


<div class="tmf-chart-singleseries" data-title="Sage Group Plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>However, as a whole, the index hasn’t been a brilliant investment in recent decades.</p>



<p>Looking at the performance of the iShares Core FTSE 100 UCITS ETF, for the 10-year period to the end of March, it only returned 75%.</p>



<p>That’s only about 5.8% a year on an annualised basis, which is not a great return when one considers the risks (volatility) associated with investing in the stock market.</p>


<div class="tmf-chart-singleseries" data-title="iShares VII Public - iShares Ftse 100 Ucits ETF Price" data-ticker="LSE:CUKX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Of course, 5.8% a year isn’t terrible. It’s a better return that savings accounts would have delivered over the period (for a large part of that period, savings accounts were paying 1% max).</p>



<p>However, over that period, other kinds of tracker funds have delivered much higher returns. For example, the <strong>iShares Core MSCI World UCITS ETF</strong> <strong>(Acc)</strong>, which provides exposure to companies in 23 different countries (including the UK), returned 148% over the same period – roughly twice the figure of the FTSE 100 product.</p>



<p>That equates to an annualised gain of 9.5%, which is a much better performance, and the kind of return expected from the stock market over the long term.</p>



<h2 class="wp-block-heading" id="h-uk-versus-global">UK versus global</h2>



<p>Now looking ahead, we could see an improvement in the performance of the FTSE 100 as a lot of Footsie stocks are trading cheaply right now.</p>



<p>But I&#8217;d be surprised if a Footsie tracker was able to outperform a global tracker over the next decade.</p>



<p>That’s because, unfortunately, the FTSE 100 is home to a lot of slow-moving businesses that are facing structural challenges (eg oil companies, tobacco businesses) and weighing the index down.</p>



<p>By contrast, a global tracker has significant exposure to technology companies like <strong>Apple</strong> and <strong>Microsoft</strong> which, to my mind, are poised to do well in an increasingly digital world.</p>



<p>Apple shares, for the record, have returned about <span style="text-decoration: underline;">25% a year</span> over the last decade.</p>


<div class="tmf-chart-singleseries" data-title="Apple Price" data-ticker="NASDAQ:AAPL" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-my-strategy">My strategy</h2>



<p>So personally, I don’t think a FTSE 100 tracker fund&#8217;s a great investment for my portfolio today.</p>



<p>Ultimately, I feel that long-term investors like myself can do better than these products.</p>



<p>Instead of just owning a UK tracker fund, I think I’m better off building a portfolio of global funds and then adding some high-quality stocks like Apple on top (<a href="https://www.fool.co.uk/personal-finance/share-dealing/reviews/the-motley-fools-share-advisor/"><em>The Motley Fool</em></a> can be a great source of stock ideas).</p>



<p>By taking a more diversified – and adventurous – approach to investing, I reckon I can give myself a better chance of financial success.</p>
<p>The post <a href="https://www.fool.co.uk/2024/04/05/is-a-ftse-100-tracker-fund-a-good-investment-for-an-isa-this-year/">Is a FTSE 100 tracker fund a good investment for an ISA this year?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 of the best Investment funds to buy now</title>
                <link>https://www.fool.co.uk/2022/02/07/2-of-the-best-investment-funds-to-buy-now/</link>
                                <pubDate>Mon, 07 Feb 2022 10:46:07 +0000</pubDate>
                <dc:creator><![CDATA[Harshil Patel]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=267063</guid>
                                    <description><![CDATA[<p>Investing in funds can be a great way to diversify and keep costs low. Harshil Patel explores two of his favourites right now.</p>
<p>The post <a href="https://www.fool.co.uk/2022/02/07/2-of-the-best-investment-funds-to-buy-now/">2 of the best Investment funds to buy now</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>I’m a big fan of investment funds and exchange traded funds (ETFs). They&#8217;re a great way to diversify investments at relatively low cost, in my opinion. In my <a href="https://www.fool.co.uk/mywallethero/share-dealing/stocks-and-shares-isa/">Stocks and Shares ISA</a>, in addition to several individual shares, I also own a few carefully selected funds.</p>
<p>There are some factors to look at when searching for a suitable fund. First, I’d see if it leans towards value, growth or a blend of both. Next, I’d look at its geographical and sectoral focus. For instance, does it typically invest in the UK, US or elsewhere, and does it focus on any particular sectors like technology or healthcare. I’d then look at its top holdings, and past performance.</p>
<h2>Top investment funds</h2>
<p>My number one pick that I’d buy right now, even though I already hold it, is <strong><a href="https://www.fool.co.uk/2022/01/17/fundsmith-equity-review-is-it-a-good-investment-for-2022/">Fundsmith Equity</a></strong>. Managed by the highly-regarded investor Terry Smith, Fundsmith continues to be a staple in my portfolio. I really like its approach to investing. It aims to be a long-term investor in the shares it owns, so it doesn’t trade in and out of shares frequently. This keeps costs low and allows time for companies to perform. Fundsmith also tries to only own high-quality stocks with businesses that are difficult to replicate. This requirement for a &#8216;moat&#8217; was popularised by esteemed investor Warren Buffett.</p>
<h2>The numbers</h2>
<p>So how has the fund performed so far? Well, performance at Fundsmith has been nothing short of exceptional, in my opinion. Since its inception in 2010 it has grown by 17% per year. More recently, over the past five years, it has more than doubled, achieving an annualised return of 15%. Looking at the shares that it owns, more than 70% are listed in the US and the largest holdings include <strong>Microsoft</strong>, and <strong>Novo Nordisk</strong>. Lastly, Fundsmith has been buying some new positions recently. One of these includes Google and Youtube owner, <strong>Alphabet</strong>. I reckon that’s a phenomenal business and I’m glad to see it become a holding.</p>
<p>That being said, there are a couple of stocks that could hold the fund back in the short term. Fundsmith owns shares in <strong>Paypal</strong> and <strong>Meta</strong>. Both of which recently suffered 20%+ share price declines after disappointing earnings reports. Overall though, I reckon it’s diversified enough to withstand near-term shocks in a few of its holdings.</p>
<h2>UK’s top 100</h2>
<p>When picking funds, I like to ensure they cover a few different locations and sectors. That’s why in addition to a global vehicle like Fundsmith, I’d consider a UK-oriented option like <strong>ishares FTSE 100 UCITS ETF</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cukx/">LSE:CUKX</a>). The objective of this one is to replicate the performance of the <strong>FTSE 100</strong> index. And one reason why I’d want to do that is because it includes several sectors outside technology.</p>
<p>I calculate 40% of FTSE 100 shares are either financials or industrials. This should provide me some diversification and allow me to invest in some established, and cash-generative businesses like <strong>Diageo</strong>, <strong>Tesco</strong> and <strong>BP</strong>. Bear in mind though, if I had invested in this UK fund five years ago, I would have achieved only an annual 5% return. That’s much less than the 15% per year achieved by Fundsmith. That said, I’d still own both right now. The next five years could look quite different to the last five, and I favour a mix of shares such as these two offer.</p>
<p>The post <a href="https://www.fool.co.uk/2022/02/07/2-of-the-best-investment-funds-to-buy-now/">2 of the best Investment funds to buy now</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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