It’s time to run a ruler over BetaShares Geared US Equity Fund Currency Hedged (Hedge Fund) ETF (ASX: GGUS) and Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX). The ETFs invest across the International shares sector.
The BetaShares GGUS ETF (ASX:GGUS)
The BetaShares GGUS Fund is an internally geared fund, investing in the largest 500 US-listed companies by market capitalisation.
According to our most recent data, the GGUS ETF had $57.5 million of money invested. Given its funds under management (also known as FUM or ‘market cap’) is less than $100 million, you should consider if this ETF is still too small and if it is sustainable for the ETF issuer. At Best ETFs we say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). However, there are exceptions to this general rule, especially if the ETF issuer/provider is reputable and committed to growing the ETF’s FUM through effective marketing strategies and distribution to financial advisers.
To learn more about the GGUS ETF, read our free ETF investment report once you’re done with this article.
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.
With our numbers for December 2020, PAXX’s FUM stood at $183.24 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 1.10% 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.
Did you know that you get access to our free investment report on Best ETFs Australia? View the free PAXX ETF report by clicking here.
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