You might be sitting back and considering the Platinum Funds Management International Fund (Quoted Managed Hedge Fund) ETF (ASX: PIXX) and thinking that December could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
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.
PIXX could be used by investors looking for a portfolio of global companies, as selected and managed by the investment team at Platinum. The focus is on purchasing undervalued companies and providing investors with long-term capital growth opportunities.
PIXX’s FUM meets our hurdle
The Platinum Funds Management PIXX ETF had $339.2 million of money invested when we last pulled the monthly numbers. Given PIXX’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.
Pay attention to yearly costs & fees
Platinum Funds Management charges investors a yearly management fee of 1.10% for the PIXX ETF. This means that if you invested $2,000 in PIXX 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 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Our takeaway
If you’re thinking about investing in PIXX, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free Platinum Funds Management PIXX report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
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