Yes I noticed the gap was just under 1% and certainly still time for MGG to catch up, they have also flagged a "long game" strategy that will ebb and flow over time, but... there are two things to note here, at least IMHO.
Firstly, the index is basically the return that could/should be achieved by simply plonking money blindly across those index stocks. No experience or expertise necessary really.
If these MGG guys can't beat the index, it reflects very poorly on them although again this needs to be reviewed over a longer time frame. But over $20 mill in fees to manage a fund that underperforms the index doesn't sound good for holders if they continue to lag.
Secondly, in terms of the ROI delivered, the 1% difference is quite significant. Across a year if the index returns 6% and MGG returns 5% it shows that the index delivered 20% better ROI than MGG.
Not trying to be dramatic, and of course ROI can turn quite quickly from month to month and Yr on Yr. But a few years of reaping 20% less ROI than the index (or other funds) adds up to a big chunk of money after just a few yrs.
I actually think MGG has gone quite well since inception, and am looking at buying again before ex divvy date.
MGG Price at posting:
$1.66 Sentiment: None Disclosure: Not Held
