5
The fiddly detail – risks, caveats and the indices
Not all index tracking funds are created equally. Investors need to understand the nitty gritty of how index funds are actually constructed and then managed on a day-to-day basis. Pick the wrong fund, with the wrong structure, high fees and little disclosure and you could be buying into trouble. David Norman and James Cottee both work for a firm called TCF Investment (www.tcfinvestment.com) – a specialist in the art of building diversified portfolios using passive funds. In this chapter David and James pick up on some of the key ideas discussed in Chapter 3 about structures and discuss their own due diligence process for using ETFs and mutual index trackers.
This chapter looks at how investors ...
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