Sorry for the potentially dumb question but I feel I can ask this community.
I was having a browse at the FTSE 100 and was wondering, why are there so many different options? How do I know the difference? Is there the main fund of the FTSE 100?
This isnβt a dumb question. I think we all ask ourselves this at some point during our investing path.
The wide range of FTSE 100 options you see represents different investment products tailored to various strategies and preferences.
Acc (accumulation) vs dis (distributing) is simply about the dividend. Accumulating reinvest dividends back into the fund, increasing its value over time. Distributing funds pay dividends to investors as cash, which is ideal if you want dividend income.
Leverage products amplify daily returns of the FTSE100 but with higher risk.
Short funds profit from the FTSE100 falling.
So you have those differences, and then you have different providers like Vanguard, Blackrock etc. They create similar products but may vary in fees and structure.
The FTSE100 (without leverage or special terms) are passive funds designed to replicate the FTSE 100 index.
The main thing for most investors is to look for a low cost passive fund with a reputable provider e.g., vanguard ftse100 or ishares ftse100. Keep your expense ratio low, thats the name of the game when it comes to index funds
Wow! Thank you very much for taking the time to give me such a detailed answer. Iβll definitely be writing those down so I can refer to them while browsing the stocks etc. Thanks again