On Friday, First Eagle Investments made its foray into the world of ETFs with the launch of two new funds.
Both of the new First Eagle funds offer actively managed equity strategies. Additionally, each fund has a net expense ratio of 0.50%, following a waiver.
Broad Global Strategy
The first fund, the First Eagle Global Equity ETF (FEGE), seeks to offer long-term capital growth to its investors. This is done from investing in securities from both U.S. and non-U.S. issuers.
Depending on market and macro conditions, FEGE will invest a minimum of 30-40% of its assets into equities outside the United States. This international strategy may include exposure to emerging markets.
Branching Out From the U.S.
Much like FEGE, the First Eagle Overseas Equity ETF (FEOE) has a goal of providing capital growth over the long term. However, this fund does so by investing in issuers outside the United States.
In terms of international exposure, much of FEOE’s equity portfolio will often lie in developed markets. However, like FEGE, the fund may hold exposure in international markets as well.
Focused on Value
When it comes to choosing assets to add to their portfolios, each fund uses a value-focused approach. Both funds may invest in companies of any particular market cap.
“These active equity ETFs harness the power of First Eagle’s pioneering approach to global investing and provide investors with fully invested exposure to the Global Value team’s stock selection capabilities,” said Frank Riccio, head of U.S. wealth solutions and strategic relationships for First Eagle Investments. “As investors seek greater tax efficiency and vehicle flexibility, our goal is to empower financial advisors with a broad range of enduring solutions that help meet their clients’ evolving needs.”
By investing in FEGE or FEOE, investors can tap into the extensive market expertise offered by First Eagle Investments. With a heritage dating back to 1864, First Eagle oversees over $149 billion in assets under management, as of September 30, 2024.
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