All about tracker funds & how they work

Tracker funds, also known as index trackers, are one of the simplest and most cost-effective ways you can invest. They were first introduced in the US in the 1970s and came to the UK in the 1980s. Tracker funds have really taken off in the last decade or so, and have become one of the most popular ways for private investors to get involved in the stock market.

In this episode, we learn about tracker funds. When you invest in an index tracker, your money is pooled with other investors’ into a fund, and together you all then own a certain set of investments.

What investments sit in your chosen fund will be dictated by the particular index it is designed to track.