In this article, we’ll try to explain why the ETF Securities Physical Gold ETF (ASX: GOLD) and Platinum Funds Management International Fund (Quoted Managed Hedge Fund) ETF (ASX: PIXX) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the 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 $2195.06 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.
Like the look of the GOLD ETF? Grab our ETF free investment report.
The PIXX ETF – a quick look for savvy investors
The Platinum PIXX Fund is an actively-managed fund that invests in a select portfolio of international companies. The fund typically selects between 70-140 global equities that the investment team at Platinum believe to be undervalued by the market.
With our numbers for July 2021, PIXX’s FUM stood at $362.59 million. Since the PIXX’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 PIXX ETF bad?
Platinum Funds Management, the ETF issuer, charges a yearly management fee of 1.10% for the PIXX 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.
The Platinum Funds Management PIXX ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.
[ls_content_block id=”4954″ para=”paragraphs”]
