You might be sitting back and considering the Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX) and thinking that January could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
The Platinum PAXX Fund is an actively-managed fund that invests in a diversified portfolio of Asian companies, excluding Japan. The fund typically selects between 50-100 Asian companies that the investment team at Platinum believe to be undervalued by the market.
PAXX’s FUM meets our hurdle
The Platinum Funds Management PAXX ETF had $168.06 million of money invested when we last pulled the monthly numbers. Given PAXX’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Pay attention to yearly costs & fees
Platinum Funds Management charges investors a yearly management fee of 1.1% for the PAXX ETF. This means that if you invested $2,000 in PAXX for a full year, you could expect to pay management fees of around $22.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
If you’re thinking about investing in PAXX, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Platinum Funds Management PAXX report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.