Create your own FTSE Tracker – Part 2

In a post last week which I called Create your own FTSE tracker, I talked about buying one share in each of the FTSE100 Companies.

I didn’t think this would be cheap, but a quick scan down the share price pages of the Sunday papers told me this might be more expensive exercise that expected…

So this evening I calculated the cost of buying one share in each of the FTSE 100 constituents based on the share prices at the close of trading today and it came to just over £1,012.

In reality the cost would be higher if you factor in Stamp Duty and the bid/offer spread.

I’ll think about this a bit more before deciding whether or not to go ahead.

For those who didn’t read the previous post on this subject, this wouldn’t be a FTSE 100 tracker as it wouldn’t “weight” the investment in line with what percentage of the FTSE100 these companies make up (based on market capitalisation).

For example, buying one share in Vodafone (VOD) at 175p and one share in GlaxoSmithKline (GSK) at 1440p would mean that I had more than 8 times as much money invested in GSK than in VOD even though the market cap of Vodafone is greater than GlaxoSmithKline.

Instead, the purpose of buying one share in each of the FTSE100 companies would go some way to achieving my goal of generating income (or one kind or another) on each working day of the year.

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