How did you define “success”? What were its returns in 2008 and 2000?
Most ETFs already have 10 year history in the books. “Success” to me is 10 year performance that is near or at the top of the ETF world.
Since 2000, the S&P 500 (IVV) has done 5% annually while S&P 600 Small Cap Value (IJS) had doubled it at 10% annually. That is success.
IJS lost %30 in 2008.
#6
Since 2000, the S&P 500 (IVV) has done 5% annually while S&P 600 Small Cap Value (IJS) had doubled it at 10% annually. That is success.
IJS lost %30 in 2008.
Right…if you can beat the market in up and down times, that is great.
I was referencing more the concept of the closed end fund:
http://www.wsj.com/articles/SB100014240527487036736045755504…
Tried to out the bug in Saul’s ear when he started this board to start the “Saul Fund”…but no dice 
Hi strelna,
Is it against the rules of the board to post which fund you are talking about? Honestly just curious, new to the board but learning a lot!
Dominic
By an interesting coincidence, I bought two ETFs this December for very much the same reasons. Until now I had been avoiding ETFs and funds.
I, too, bought shares of funds in December…3 Vanguard index funds. They are, so far, giving me some peace of mind for at least a portion of my holdings, while allowing me to actively manage the remainder.
Hi Streina, Are you just tantalizing us by telling us about this wonderful fund without telling us which it is?
Apologies, Saul and dumflotchie.
Scottish Mortgage Investment Trust (UK:SMT).
(‘Investment trust’ is the UK term for closed-end fund.)
Remit: Global large-cap. equity.
Cap. £4,122m. FTSE 100 company.
Currently trading at a premium of 2%
Total expense ratio .45. No performance fee.
Morningstar UK: Gold, 4 stars.
SMT used to be a stolid old closet tracker. Then it changed itself into something more dynamic, since when it has not looked back.
Missed a word out of ‘Remit’, should be Global large cap growth equity.
Missed two other details, net gearing 13.6%, DY ~ 1%.
We almost got through this thread without anyone making a “that’s what she said” joke, but I can’t let that happen.
Bear
I do not know if one can buy shares in SMT from here using either Ameritrade or Fidelity. Perhaps there are ETFs or Mutual funds which have similar portfolio to SMT. VGT from Vanguard seems to be one. Does anyone know how the performance of this ETF compares with that of SMT. I tried Yahoo and Ameritrade but they do not recognize this ticker symbol.
Cheers.
The trading symbol for Scottish Mortgage Investment Trust in London is SMT.L
To trade it in the US, you can call your broker and ask to trade it in London. Or you can buy it in the Over-the-Counter market using symbol STMZF (note that the placing of the T and the M are reversed. That’s not a misprint.)
Streina, Could you say a little about why you like this particular stock.
Saul
By the way, you could trade it on Schwab.
STMZF
My broker charges outrageous commissions to trade five letter stocks.
Denny Schlesinger
My broker charges outrageous commissions to trade five letter stocks.
Not only that, but they usually have very wide bid-ask spreads as well. I was just providing the information, not recommending that anyone buy it.
Saul
I like UK:SMT because I wanted a closed-end fund (ie active, not passive) preferably at a discount or with a negligible premium to NAV, with a low TER and no performance fee and with a successful history of investing in all the things I did not want to invest in directly myself because I did not understand them (because they did not conform to my simple way of evaluating quality growth companies).
I feel I can now forget all about AMZN, FB, TSLA and the rest which would not come through my screens and DD but which - some of them - are such rampantly successful features of the landscape they have proved to be desirable.
I must have been the world’s worst investor in AMZN!
I am sure there must be US equivalents to UK:SMT.
Beware of currency losses!
Also Strelna, I do not know anything about CEF’s but I thought there was a few things you need to be aware of to invest in them, could you explain the downside of CEF’s
Andy
Captain,
Does it get cheaper by the letter?
Andy
Now $4.50 a trade but $50 for five letters! 60 cents per option contract with a minimum of $4.50. They have much better rates for volume traders but I don’t rank “trader” just "investor.’
Lightspeed Trading
Denny Schlesinger
The details of SMT can be found at https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=….
The growths as of yesterday over 1, 3 and 5 years are 16%, 61.6% and 171.6%. However these are for transactions in pound sterling. The exchange rates for GBP today, 1, 3 and 5 yrs before are 1.26, 1.51, 1.64 and 1.57. Using these values the growth over 1, 3 and 5 yrs in USD works out to be
-3%, +24% and +118%. The corresponding figures for VGT as of 30 Nov are
+9.2%. +45% and +106%.
As the portfolios of the two stocks are quite similar, VGT or another ETF such as XLK or FDN may be a suitable alternative serving the same purpose as SMT but with less hassle.
Please check my computations before accepting the numbers above.
Cheers.