GLCC: Difficult To Justify The Fees

2025-01-17 07:19:58 ET

Summary

• GLCC:CA has high fees (~1.2% annually) and only 25% of assets in covered calls, making it hard to justify the cost of any potential added value.
• The fund's portfolio includes 40% in Global X's own gold producers ETF, adding unnecessary extra fees.
• Despite a 100% return over 10 years, GLCC:CA has underperformed compared to other gold miner ETFs.
• For investors interested in trading-away their upside in gold miners, I recommend doing so themselves.

Global X ETFs, which manages one of my top holdings, the Nasdaq 100 Covered Call ETF ( QYLD ), also operates funds domiciled in Canada. One of those with a narrow focus is the Global X Gold Producer Equity Covered Call Fund ( GLCC:CA ). With many of the top gold mining companies based in Canada, including Barrick ( GOLD ) ( ABX:CA ), Agnico-Eagle ( AEM ) ( AEM:CA ), and Franco-Nevada ( FNV ) ( FNV:CA ), the Canadian domicile makes sense....

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