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First Eagle Global Equity and First Eagle Overseas Equity ETFs in registration
I have owned their mutual fund SGIIX for many years. The ETF would work better for me as Fidelity charges $49 for each buy and zero for stock transactions.
The ER fields for etf in the filing are blank. Hopefully, they will be lower than their OEF counterparts.
SGENX (ER 1.1%) is no-load/NTF at Fido & Schwab, but the ER is higher than SGIIX (ER 0.86%). Fund has always held some gold in the portfolio (see Other).
The main concern i have with many of these ETFs coming out of fund shows is trading volume. LCR looks cool and has decent AUM, but trading volume is a bit thin. Numerous other examples from respected funds shops and advisors abound.
A secondary concern is full reinvestment of dividends and cap gains (if your broker doesn't allow purchase of fractional shares).
@Shostakovich, Vanguard doesn't allow fractional share orders, but one can signup for its brokerage-based reinvestment program - Vanguard will buy fractional shares. Unfortunately, some ETFs are excluded from VG dividend reinvestment program (TCAF, etc).
LCR is a good fund but we are not invested in it because it is traded at 11,000 shares as of Friday, September 27, 2024 as @skostakkovich mentioned. I prefer a more health trading volume of 100k or more. Additionally, the management fee at 0.88% is not cheap but it is lowered compared to that of LCORX at 1.44%.
I hope First Eagle Global Equity ETF will be better than that of LCR.
@Sven - First Eagle funds are of interest to me in part because they are (in principle) flexible and hold physical gold. Doesn't seem that will be case with ETFs. I'll be sticking with standard mutual funds for a good long while yet.
We can use a combination of First Eagle ETF and a gold bullion ETF, IAU. The mutual fund maintains about 10% in gold and high single digit cash. Always have lots of respect with Matthew McLennan.
SGENX has 57 billion AUM, turnover is only 6%. Despite small turnover it is not very tax efficient. Maybe ETF in the beginning will be more flexible and tax efficient.
It took Jean-Marie Eveillard a couple of attempts to find his successor, but he seemed to land on a good one with Matthew McLennan. I was always scared away from the expense ratio though. I hope Jean-Marie is enjoying his retirement on a beautiful yacht somewhere right now.
Comments
SGENX (ER 1.1%) is no-load/NTF at Fido & Schwab, but the ER is higher than SGIIX (ER 0.86%). Fund has always held some gold in the portfolio (see Other).
A secondary concern is full reinvestment of dividends and cap gains (if your broker doesn't allow purchase of fractional shares).
Unfortunately, some ETFs are excluded from VG dividend reinvestment program (TCAF, etc).
I hope First Eagle Global Equity ETF will be better than that of LCR.