The FSA Spy market buzz – 27 September 2024
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The three-year performance of the HSBC and Vanguard funds versus their benchmark indices, according to FE Analytics.
Both funds have done a good job in tracking their respective benchmarks, according to Bioy. The HSBC fund has a tracking error of less than 0.10%, while the Vanguard fund’s tracking error is 0.04%.
In terms of cumulative performance, the Vanguard fund outperformed the HSBC fund over a three-year period.
The Vanguard fund also outperformed over the longer-term: It has returned 106.12% over a 10-year period versus HSBC’s 90.58%, according to FE data.
“When the UK economy is doing well, mid-caps will do better than large-caps, which gives a nice tailwind to the FTSE All Share Index,” Bioy explained.
However, when there is strong volatility in the UK market, large-cap companies tend to perform better than mid- and small-cap stocks, she said.
Indeed, although the All Share Index outperformed over the long-term, it underperformed the FTSE 100 Index in 2016 after the Brexit vote results.
Discreet annual performance
Fund / benchmark |
2017 |
2016 | 2015 |
2014 |
HSBC FTSE 100 |
11.7 |
18 | -1.24 |
0.21 |
Index : FTSE 100 |
11.95 |
19.07 | -1.32 |
0.74 |
Vanguard FTSE UK All Share |
13 |
16.58 | 0.89 |
1.05 |
Index: FTSE All Share |
13.1 |
16.75 | 0.98 |
1.18 |
Source: FE Analytics
In terms of volatility, the HSBC fund’s volatility on a three-year annualised basis is 9.76, while Vanguard’s is 9.36, according to FE data.
Themes ETFs by ticker, China stimulus, Macquarie and the art of investing, Money out of thin air, Watch what I do, Venture Capital and AI, Wisdom from Marks and Morgan and much more.
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