Funds & Trackers
Familiarity feels like information
Investors consistently favour what they recognise, and recognition carries no information about future returns.
Funds & Trackers
Index funds, diversification and reading a fact sheet properly.
21 articles · updated August 11, 2026 · page 2 of 2
Funds & Trackers
An index is a set of rules, not a photograph of the market
Somebody decided what qualifies, how it is weighted and when the list changes. A tracker follows those decisions rather than the…
Funds & Trackers
The gap between a tracker and the index it tracks
Two funds following the same index will not deliver the same result. The gap has identifiable causes and most of them are visible…
Funds & Trackers
Accumulation and income units own exactly the same portfolio
Two share classes of one fund hold identical assets and differ only in what happens to the dividends. The choice still has…
Funds & Trackers
Market-cap weighting decides your concentration for you
A size-weighted fund holds most of its money in whatever has already grown most. That is a design feature, and it has consequences.
Funds & Trackers
Physical and synthetic replication carry different risks
Some funds own the index. Some own collateral and a contract promising the index return. The difference surfaces only when…
Funds & Trackers
The currency a fund is priced in is not the currency of its risk
A fund quoted in your own currency can still rise and fall with exchange rates. Hedging changes that, at a cost, and only partly.
Funds & Trackers
The letter telling you your fund is changing
A holding you never intended to sell can be merged, repriced or wound up without your involvement. The letter arrives with a…
Funds & Trackers
Bond funds do not behave like the bonds inside them
An individual bond matures and repays a known amount on a known date. A fund of bonds never matures, and that changes what it can…