The Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX) could be one to watch in April and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the Platinum Funds Management PAXX ETF actually 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 meets our minimum FUM criteria
The Platinum Funds Management PAXX ETF had $183.24 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.
Don’t forget PAXX’s fees
Platinum Funds Management charges investors a yearly management fee of 1.10% 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.
What to do next
If you’re weighing up investing in the PAXX ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Platinum Funds Management PAXX report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.