L&G Global Equity UCITS ETF LGGG

Aidanmc

Was looking at this ETF as a potential Developed world tracker

Its been around since 2018 and seems to be performing as well as other Developed world ETFs,

low ocf at 0.1%, yet the fund size is less that 100million

Any ideas why the size of this fund is quite low?

gravel_2

I hold a bit of this. Also wondered about the size. I suspect it's because it doesn't track one of the "normal" indices. It's not MSCI World or FTSE Developed. Rather it's on a Solactive index with a soft ESG slant.

Aidanmc

gravel_2 said:

I hold a bit of this. Also wondered about the size. I suspect it's because it doesn't track one of the "normal" indices. It's not MSCI World or FTSE Developed. Rather it's on a Solactive index with a soft ESG slant.

Yeah i thought that may be the reason also. But then the Amundi Prime Global PRWU also follows the Solactive Index and its 1100m USD fund size, although only 0.05% fees, but its domiciled in Luxembourg. Performance of both have been the same

DavidT67

LGGG, is part of a set of LGIM ESG funds which track Solactive indexes.  

If you look at the constituent regional indexes they are noticeable larger. LGUK, LGUG, LGEG, LGAG & LGJG.  

So if taken as a whole it's a £Bn fund company.

NB I do hold over £1M in these funds.

gravel_2

DavidT67 said:

LGGG, is part of a set of LGIM ESG funds which track Solactive indexes.  

If you look at the constituent regional indexes they are noticeable larger. LGUK, LGUG, LGEG, LGAG & LGJG.  

So if taken as a whole it's a £Bn fund company.

NB I do hold over £1M in these funds.

I think this goes some way to addressing concerns around size/presence of L&G (I am not sure that's what this thread was about anyway) but, unless I have this completely wrong, the size of the fund itself dictates how much of the fund is on the market and indicates how much it might be traded (vs a multi-billion £ fund), and therefore low total value of the individual fund could mean liquidity issues/big spread.

This may be of little concern outside of trying to time the market (with an ETF?) or black swan.

DavidT67

gravel_2 said:

I think this goes some way to addressing concerns around size/presence of L&G (I am not sure that's what this thread was about anyway) but, unless I have this completely wrong, the size of the fund itself dictates how much of the fund is on the market and indicates how much it might be traded (vs a multi-billion £ fund), and therefore low total value of the individual fund could mean liquidity issues/big spread.

This may be of little concern outside of trying to time the market (with an ETF?) or black swan.

No, ETF providers can create and destroy shares based on demand.  UCITS ETFs, which all EU domiciled ETFs are, have assured liquidity. See these articles on JustETF.

https://www.justetf.com/uk/news/etf/creation-redemption-the-secret-sauce-of-etfs.html

https://www.justetf.com/uk/news/etf/legal-structure-of-etfs-ucits.html

noclaf

I've looked at LGGG a few times but the fund size put me off, performance seems fairly good in comparison to other Dev Markets ETF's however I feel more assured investing in ETF's when they are of a decent fund size and from an established name as well as cheap/reasonable fees.