Could your tracker fund be costing you a small fortune?

A tracker fund is an excellent way to invest in the market while keeping costs low, but some platforms are far more expensive than others. We look at the worst offenders.

woman taking a break while working at home
(Image credit: Oscar Wong)

The most expensive tracker funds are charging 20 times more than the cheapest alternative, potentially costing investors thousands of pounds over the longer term.

An investor with £10,000 in the most expensive UK stock market tracker fund will pay £106 in investment management fees every year, a huge premium over the estimated cost of £5 per year for the cheapest tracker fund, analysis from investment platform AJ Bell has revealed.

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Row 0 - Cell 0 Most expensiveAverageCheapest
Asia Pac ex Jap0.32%0.18% 0.11%
Europe ex UK 0.13% 0.12% 0.06%
Global0.62%0.14%0.12%
Global EM Japan 0.41% 0.24% 0.20%
Japan0.31%0.15%0.08%
North America 0.30% 0.10% 0.05%
UK1.06%0.16%0.05%
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Angela Madden

With more than 25 years as a journalist and editor, Angela’s work has appeared in outlets across the globe and at one stage she was the only female and youngest financial correspondent in the UK. Her articles have appeared in The Huffington Post, most UK and Irish nationals, including the Daily Telegraph, Sunday Times, Mail on Sunday, Scotland on Sunday and Business Post as well as myriad trade publications such as FT Adviser, MandateWire, Funds Europe, Global Legal Post, Smart Cities World and ESG Clarity US. 

She also served as group editor and general manager for 13 titles across the island of Ireland and was a regular TV media commentator. While serving as Manhattan-based America correspondent she spent six weeks in Huntsville, Texas, becoming the first person to research the economics of the infamous prison which included interviewing prisoners just two weeks before their execution. Able to get under the bonnet of any subject, Angela has also helped start-ups, the world’s largest companies, governments and economic development agencies tell their stories.