Your thoughts on the expenses? The MER as stated, would it be the true expenses as the ETF itself holds other ETF's that make up the holdings? Can you please give me some idea of the true expenses?
Thank you
FINC is a 'macro' focused fund designed to generate income and some capital appreciation by investing in a mix of Canadian and global securities. It is currently invested 32% in the US, 4.7% in Japan and 4% in Canada, with a mix of other countries. It is 61% fixed income right now, with 39% government bonds. Assets are less than $1M currently. Management fees are 0.55%. Total MER will likely be in the 0.70% range. MER can be higher for small new funds initially, as there are less assets to absorb admin/legal and complicance fees. We do not have any concerns with the set up of the fund, but it does not seem that unique in a very crowded ETF field. With new small funds it is all about performance. It will have a hard time attracting assets unless it outperforms much larger and better known peer ETFs. Securities laws prevent ETFs from 'double dipping' on fees, so the MER for a fund is the true expense of what unitholders pay (i.e no additional fees on other ETFs held in the ETF).