On the ASX, the Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX) and Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) might be worth digging into in 2020.
What to know about the Platinum Funds Management PAXX ETF
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 $168.06 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.
Keep learning about the PAXX ETF. Click here to access our free ETF review.
The Vanguard VLC ETF – key points
The Vanguard VLC ETF provides exposure to the MSCI Australian Shares Large Cap Index. This index is a ‘free float-adjusted market capitalization index’ which provides investors with exposure to the largest companies on the ASX.
With our numbers for Oct 2020, VLC’s FUM stood at $104.84 million. Since the VLC’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 VLC ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.2% for the VLC ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $4.00.
This management fee is below the average for all ETFs on our Best ETFs Australia list of ETFs. However, you might still be able to find a cheaper ETF for less.
Before rushing out and investing in the VLC 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 VLC.
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