On the ASX, the ETF Securities Physical Gold ETF (ASX: GOLD) and Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX) might be worth digging into in 2020.
What to know about the ETF Securities GOLD ETF
The ETFS GOLD ETF provides investors with access to the precious metal of gold, by seeking to achieve a return equivalent to the movements in the gold spot price, before fees and expenses.
According to our most recent data, the GOLD ETF had $2186.83 million of money invested. With GOLD’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 Commodities 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.
Keep learning about the GOLD ETF. Click here to access our free ETF review.
The Platinum Funds Management PAXX ETF – key points
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.
With our numbers for Oct 2020, PAXX’s FUM stood at $168.06 million. Since the PAXX’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 Active ETF (e.g. ETMF) sector should be able to scale well and become profitable for the ETF issuer.
Are the fees for the PAXX ETF bad?
Platinum Funds Management, the ETF issuer, charges a yearly management fee of 1.1% for the PAXX ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $22.00.
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.
Before rushing out and investing in the PAXX fund, consider searching our full ETF list to compare the fees and costs of another ETF side-by-side. Another idea might be using our website to get a free but comprehensive investment review on PAXX.
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