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What are your thoughts about SGENX as an 'All In One Fund'?
Its got a long track record of delivering better then market returns. Its globally diversified, and has recently made a small investment in gold. I seen funds like VWELX getting a attention as an 'All in one Fund', why not SGENX? Its available WITHOUT a load fee or transaction fee through my brokerage, schwab.
The fee for owning SGENX is 1.11% per year!! Yikes! That means for every $1M you have invest in it, you are paying $11,100 every year to own it. No thanks.
VWELX in contrast is 0.26% in fees. Still kind of high but better than 1.11%. You can get the Admiral shares class of this same fund for 0.18% in fees (minimum purchase is $50k).
I invest in DIY (do it yourself) funds. My total fees are about 0.09%.
Performance for SGENX is almost identical to VWENX.
except for ytd sgenx has lagged wellington every time frame the last 10 years but you really can't compare the two as sgenx is a global fund and has almost 40% of the fund in foreign stocks .
if foreign markets rebound sgenx could be the better fund to own between the two performance wise .
Last edited by mathjak107; 03-24-2016 at 03:34 AM..
The fee for owning SGENX is 1.11% per year!! Yikes! That means for every $1M you have invest in it, you are paying $11,100 every year to own it. No thanks.
VWELX in contrast is 0.26% in fees. Still kind of high but better than 1.11%. You can get the Admiral shares class of this same fund for 0.18% in fees (minimum purchase is $50k).
I invest in DIY (do it yourself) funds. My total fees are about 0.09%.
Performance for SGENX is almost identical to VWENX.
26 bps is not "kinda high" not for mutual funds and certainly not compared to it's peer group
The fee for owning SGENX is 1.11% per year!! Yikes! That means for every $1M you have invest in it, you are paying $11,100 every year to own it. No thanks.
VWELX in contrast is 0.26% in fees. Still kind of high but better than 1.11%. You can get the Admiral shares class of this same fund for 0.18% in fees (minimum purchase is $50k).
I invest in DIY (do it yourself) funds. My total fees are about 0.09%.
Performance for SGENX is almost identical to VWENX.
Im not sure how you see performance as nearly identical. Since inception sgenx has returned far more: VWELX Vanguard Wellington
looking at the last 10 years on morningstar shows sgenx lagging every time frame but ytd . only the 15 year shows a head and that is because it included a time frame foreign was hot . the 1 yr , 3 yr , 5 yr and 10 yr have sgenx behind
looking at the last 10 years on morningstar shows sgenx lagging every time frame but ytd . only the 15 year shows a head and that is because it included a time frame foreign was hot . the 1 yr , 3 yr , 5 yr and 10 yr have sgenx behind
Well over the 15 year and 20 year and 25 year sgenx is greatly ahead. So for long term....
Ultimately would it be safe to say, sgenx is a suitable all in one fund? Only time will tell if it out performs vwelx or an index fund?
You know what they say - past performance is not an indicator of future performance. Studies have shown that it is very rare for a fund to consistently outperform the market year after year. Things tend to mean-revert so yesterday's top performer is tomorrow's dog. So you have to guess which fund(s) will outperform this year. Might be SGENX, but it might not.
There is an interesting report from McGraw Hill Financial (who own S&P) called the SPIVA report. It tracks relative performance of mutual funds and index funds (relative to their benchmarks). Here is an excerpt from the most recent SPIVA:
...over the 10-year investment horizon, 82.14% of large-cap managers, 87.61% of mid-cap managers, and 88.42% of small-cap managers failed to outperform on a relative basis.
And when you look at what the difference is between average active fund performance and the market, it is the fees they charge. So they do matter.
One other thing: performance should not be the sole metric one uses to assess a fund. Risk is also very important. My preference is to look at the risk-adjusted return rather than just total return. Active funds tend to be managed pretty well for risk, so in a risk-adjusted basis SGENX might be better than Wellington. I have not looked.
but if you follow investors money they do a whole lot better .
there are thousands of small funds , some are at the top one year and the bottom the next , some have little investor money and as talented as the manager is the expenses just crush the fund because there is so little money invested .
but if you go to the middle of the pack , usually the big funds which contain most investors money out perform over the long term .
while the saying is true that indexing beats 80% of funds , it is not true it beats 80% of investors in actively managed funds .
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