It’s time to run a ruler over Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX) and Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). The ETFs invest in the International shares and Australian shares sectors/industries, respectively.
The Platinum Funds Management PAXX ETF (ASX:PAXX)
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.
According to our most recent data, the PAXX ETF had $183.24 million of money invested. With PAXX’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws 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 lowers the chance that the ETF issuer will close the ETF.
To learn more about the PAXX ETF, read our free ETF investment report once you’re done with this article.
Vanguard VSO ETF (ASX:VSO)
The Vanguard VSO ETF provides exposure to a diversified portfolio of Australian small caps and tracks the MSCI Australian Shares Small Cap Index. This is a low-cost way to access the performance of Australian small-cap shares through a single fund.
With our numbers for Dec 2020, VSO’s FUM stood at $464.55 million. Since the VSO’s FUM is over $100 million, our investing team would say the ETF has met our minimum criteria for the total amount invested, otherwise known as FUM. A very sustainable ETF in the Index sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the VSO ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.30% for the VSO ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $6.00.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free VSO ETF report by clicking here.