The Australian ETF industry seems to be growing faster by the day, and one of the ETFs you might have your eye is the Platinum Funds Management Asia Fund (Quoted Managed Hedge Fund) ETF (ASX: PAXX). In this article, we’ll provide a quick review of the PAXX ETF.
1. Exposure
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.
PAXX could be used by investors looking for a portfolio of Asian (ex-Japan) 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.
2. Funds under management (FUM)
The Platinum Funds Management PAXX ETF had $133.62 million of money invested when we last pulled the monthly numbers. Given PAXX’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.
3. Management fees & costs matter
Platinum Funds Management charges investors a yearly management fee of 1.10% for the PAXX ETF. This means that if you invested $2,000 in PAXX 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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the PAXX ETF. If you’re looking to do some further digging, be sure to read our Platinum Funds Management PAXX report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
