PRIW

Reg_Smeeton

Hi all,

Are there any views/comments regarding the PRIW ETF? I want to take advantage of the capped costs on holding ETFs at HL, so my intention is this will replace my international/Uk equity funds. 

I’m tempted in by the very low ongoing fee (0.05%), but slightly nervous as this is the largest part of my portfolio so don’t want to screw up!

cloud_dog

What drew you to this particular ETF? Is it basically the low OCF?

It seems to track an fairly unknown (to me) index "100% SOLACTIVE GBS DEVELOPED MARKETS LARGE & MID CAP USD INDEX".

What is it that this fund offers you that the usual suspects tracking the FTSE or MSCI Global/World indexes do not offer.

NedS

LGGG (Legal & General - 0.11% OCF) is another that tracks the same index, although has "better" performance over the short period they've run. Whether this is due to tracking error or some other issue I do not know.

Performance as a whole seems in the same ball park as any other roughly comparable global equity index. Given the scale and reputation of L&G, I'd probably favour LGGG over PRIW. If fees on HL are a concern, HSBC's MSCI World Index tracker (HMWO) has fees of 0.15% on HL.

Reg_Smeeton

Yes, it’s the low OCF.

My understanding is that these Amundi ETFs are cheap as they don’t track the established indexes, I came across it on Monevators cheapest index funds list.

aroominyork

I recently came across TGGB which is a global equal weight ETF, also tracking a Solactive index. It tracks (in theory) the top 250 developed world companies. I guess it helps keep fees down by tracking a relatively small number of companies. It's then your choice of whether (putting the equal weight aside) you are happy to have a small number of companies to represent a large universe.

Reg_Smeeton

Thank you for your useful comments.

I’ve used a screening tool to compare PRIW, LGGG and HMWO. I’m very interested to see that LGGG “only” has a fund size of 36M GBP, the other two are substantially larger (206M GBP for PRIW and 2305M GBP for HMWO). Would this be of potential concern in terms of liquidity, or is 36M “big enough”?

All three funds have a similar number of holdings, PRIW does seem to be lagging enough behind HMWO that it would negate the lower OCF if this performance were to continue.

I will continue to ponder...

NedS

Reg_Smeeton said:

I’ve used a screening tool to compare PRIW, LGGG and HMWO. I’m very interested to see that LGGG “only” has a fund size of 36M GBP, the other two are substantially larger (206M GBP for PRIW and 2305M GBP for HMWO). Would this be of potential concern in terms of liquidity, or is 36M “big enough”?

I don't think so as L&G Investment Management have over £400 billion under management in index-tracking investments, I'm sure they have methods to bring economies of scale to bare on their business (hence the low fee of 0.11%) even thought the funds are segregated on paper. Plus the assets held in this fund are about as liquid as you can possibly get with the top 5 holdings comprising the usual suspects of Apple, Microsoft, Amazon, Facebook, Google...

Interestingly, you can download a spreadsheet of the full fund portfolio here listing the ~1250 shares held to track the index of 1626 companies:

https://fundcentres.lgim.com/uk/professional/fund-centre/ETF/Global-Equity/#Portfolio

$1.55M represents a full basket of shares to replicate the index, and the fund stands at around 32 times that size.

kingsdown49

I too bought some PRIW based on Monevator shortlist. ( a year on though no longer recommended for some reason) . With OCR of just 0.05% PRIW remains  very cheap and as I hold the ETF in H&L overall cost is very low. The only two negatives (which don’t affect me) are 1) the spread is higher ie if you are trading the other ETF’s work out cheaper 2) on HL site it does not give an instant valuation as it is based in Luxembourg but instead like a fund a daily valuation.