Create your own FTSE tracker

I had a thought this morning (I blame the four espresso shots I had!)

I wonder how much I would have to invest to buy one share of every company in the FTSE 100 index?

Why would I want to do this? Surely dealing costs would make this a bad idea?

Ordinarily, yes. But regular readers will know that I currently have a Premium Share Dealing account with The Share Centre. For an annual fee of £2500 + VAT, I can deal as many times as I like and pay no dealing fees (just Stamp Duty).

So why would I want to buy 1 share of every company in the FTSE100? Surely a tracker fund would make more sense.

Yes, it probably would. But as I’ve mentioned a few times before, I’m trying to generate at least one income stream (be it an interest payment from a savings account, or a dividend payment) per working day.

Why not!

I would estimate that I’m already a quarter or a third of the way there, but that still leaves a lot of days without income of one for or another.

So if I were to but at least 1 share of every FTSE 100 constituent that could be another 100 income days (in reality it would be less as I already hold shares in many FTSE 100 companies, and some Companies would pay out their dividends on the same day as others).

This exercise wouldn’t result in a “real” tracker as it wouldn’t be weighted towards the larger FTSE100 companies in the same why that a “proper” tracker fund would.

But just think of all those days of dividends drip-feeding into my Share Centre account.

I’m going to work out how much it would cost to buy 1 share in every FTSE 100 company and report back. I suspect it might be quite a lot…

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