PTNR turned out to be a poor proxy for both Israel and telecom as it turned out (maybe this will change in the future) but the massive dividend offset a large portion of the price decline, but not all of it. The stock had a couple of hiccups along the way in terms of missing estimates once or twice, still what I would call very good growth but with certain stocks, earnings misses obviously get punished.
We've been slightly overweight telecom but the PTNR sale left us temporarily underweight which was not going to be the case very long. I was very positive of the concept of the EG Shares sector funds from the outset and when they finally listed the rest of them I liked what I saw under the hood of the telecom fund. Had PTNR worked out as hoped for I doubt I would own TGEM at the point but we did sell, I wanted a replacement and I think TGEM can be a good hold.From the top down I wanted high yielding foreign exposure that avoids Europe. From the bottom up I think telecom in China (the largest country in the fund) is one of the sectors that can be held and if China Mobile (CHL) ever gets going then this fund will do well. I also like being able to access South Africa in a consumer-ish sector and increase our Brazil exposure. The fund should yield in the high threes after accounting for the fee.
4 comments:
The ETF TGEM is trading 20,000 shares on its recent days, I see only five days trading. While I like telecom and eem sectors, doesn't this small amount of shares trading concern you?
Thanks
It is important to understand what liquidity for ETFs means. It is not shares traded it is specialist/market maker's ability and willingness to trade. Long story short I have confidence here. There are no guarantees but I have confidence in EG Shares and the folks they choose to work with on this.
Don't know if you look at these old posts, but what happened to TGEM? Is it lack of volume that there are no updates?
Of course there may be confusion about why Vail (MTN) is included. I finally found the real MTN.
Bob S
yes the volume is low and is unlikely to pick up in the face of a panic if ever. i believe in the exposure long term and am confident that they will step up with liquidity if i need to make a trade.
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