On the ASX, the Platinum Funds Management International Fund (Quoted Managed Hedge Fund) ETF (ASX: PIXX) and Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) are two ASX ETFs worthy of closer inspection.
What the Platinum Funds Management PIXX ETF does for 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.
According to our most recent data, the PIXX ETF had $352.3 million of money invested. With PIXX’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.
Fees to consider
According to our numbers, the annual management fee on the PIXX ETF is 0.011. The issuer, Platinum Funds Management, collects this fee automatically.
Meaning, if you invested $2,000 in the PIXX ETF for a full year you could expect to pay management fees of around $22.00. This fee is different from the fee you pay to your brokerage provider (e.g. CommSec, NabTrade, SelfWealth, etc.), which is the fee to buy or sell the ETF. In addition to a management fee charged by the issuer, be mindful to check the ‘spread‘ for the ETF.
A fee comparison
Fees aren’t the only key consideration for ETF investors, but it’s an easy thing to do. To understand if the ETF you’re looking at is too costly, compare it with other ETFs from the same sector, and against the industry average. For example, the average management fee (MER) across all of the ETFs covered by the Best ETFs Australia team was 0.51%, which is $10.20 per $2,000 invested. Keep in mind that small changes in the fees paid can make a big difference after 10 or 20 years. You should read the PIXX Product Disclosure Statement (PDS), available on the ETF issuer’s website, because it will detail the fees, tax implications and the latest information.
Side note: did you know you can access our full review of the PIXX ETF by clicking here?
What does the Vanguard VLC ETF do?
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 December 2021, VLC’s FUM stood at $151.42 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.
A look at the VLC ETF fee load?
Vanguard, the ETF issuer, charges a yearly management fee of 0.002 for the VLC ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a 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.
If you want to learn more about the VLC ETF, you should know that you can access our free investment report.
