Cheapest UK Index Funds 2026: Total Cost of Ownership

Understanding different cost terms like AMC, OCF, and TCO is important when comparing index funds.

Vanguard's cost advantage has diminished, with new competitors like Amundi offering lower total costs.

Total Cost of Ownership (TCO) is the most accurate measure of a fund's cost, including both disclosed fees and undisclosed transaction costs.

When choosing a low-cost index fund, consider the overall TCO rather than just the Ongoing Charges Figure (OCF).