MQEG - Macquarie Core Global Equity Active ETF

[BossMan.]

Investment Objective
Outperformance of index over the medium to long term (before fees).

The Fund provides exposure to a diversified portfolio of Global equities through securities listed, or expected to be listed, on global developed market exchanges.

Benchmark:
MSCI World ex-Australia ex-Tobacco Net Dividends Reinvested Index in Australian dollars (unhedged)

Fees:
Management Fee: 0.08% p.a. of net asset value of fund
Performance Fee: 20% of the cumulative out-performance of the fund (after the management fee and expenses) above the return of the index, subject to a high watermark.


Index Performance:

 

[BossMan.]

Posting this as I am interested in it as a potential for some international diversification in my portfolio. The low fees are very appealing and most funds tracking an index often only beat it marginally (to where the 20% performance is likely not to occur often enough for it to be overly significant).

Interested if anyone has seen any other red flags/concerns related to the MQEG etf's it appears they are trying to compete with BetaShares on the low fee model.

 

[divs4ever]

Posting this as I am interested in it as a potential for some international diversification in my portfolio. The low fees are very appealing and most funds tracking an index often only beat it marginally (to where the 20% performance is likely not to occur often enough for it to be overly significant).

Interested if anyone has seen any other red flags/concerns related to the MQEG etf's it appears they are trying to compete with BetaShares on the low fee model.

comments ...

i first i hold MQG ( so am a little conflicted )

now i was looking at the Australian version

but most of my niggles should translate your selection

now i don't mind paying performance fees WHEN they earn them

so is the comparison benchmark any sort of hurdle . some managed funds elsewhere seem to just draw a chalk mark on the floor ( no hurdle at all , or one you can never understand if they are rorting it )

a GOOD active fund manager should beat the benchmark about 50% of the time (but a bad manager could do so nearly every time ( like Bernie Madoff did )

MQG are very performance driven ( formerly known as 'the millionaire factory ') so expect them to try ( too? ) hard ( or those managers are shown the door ) so expect them to take some extra risks

my real question is this the correct time to be chasing developed economies ... emerging ones the extra risk might pay off better

.. so does this ETF offer a better portfolio than one that focuses on the NASDAQ or DJIA

my other niggle is these ETFs are relatively new ( no easy to check history , now since MQG culls bad performers quickly that might be a good thing .. BUT ETFs are supposed to trade very near their NTA , so unlike a LIC are less liable to trade at a premium or discount

now i realize you are younger and have time on your side , but is this where you want to park some cash this year , if you think the whole market will drop 40% or more your answer might easily be yes ( hoping Government will selectively bail-out the BIG names

BTW i still haven't found the documentation i like to read before buying ANY ETF ( simple implies to me , they consider your gullible or lazy )

 

[BossMan.]

.. so does this ETF offer a better portfolio than one that focuses on the NASDAQ or DJIA

I wouldn't buy any SP500 fund at the moment (with the MAG7 accounting for 35% of the index).

Would only consider an equal weighted equivalent (and the equal weighted has been what I have been watching to get a true gauge of american equities, and may be the position I ultimately take. I note BetaShares has a currency hedged SP500 equal weight: HQUS (0.32% p.a. fees)

The appeal of MQEG is the seemingly systematic and automated nature of the fund. It removes emotion from the equation. Additionally it provides broad based global and sector exposure.

Now I agree with you regarding whether the opportunity cost of parking the money here is a good idea (and I am still looking at other options as well).

There is still a lot of uncertainty and one bad economic indicator could lead to another sell off. I don't intend on deploying my capital into developed equities until after the election, in the absence of a sell off where a "buy the dip" scenario emerged.

My holding time frame in the absence of a critical life event is 7-14 years so time is on my side.

 

[divs4ever]

https://etf.macquarie.com/assets/etf/data/fund/CGEETF/Macquarie%20Core%20Global%20Equity%20Active%20ETF_PCF.pdf

that is pretty diverse and includes some currency plays , but on the plus side it is diverse enough to include some good but not-so popular stocks

being so diverse it makes you wonder if the active management will create a major advantage

 

[divs4ever]

https://mim.fgsfulfillment.com/download.aspx?sku=PDS-CGEETF-ANZ