1. The Platinum Funds Management PIXX ETF (ASX:PIXX) ETF
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 1.1%. 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.
Want to hear more about the PIXX ETF? View our free investment review.
2. The Vanguard VMIN ETF (ASX:VMIN) ETF
The Vanguard VMIN Fund is an actively-managed ETF which aims to provide lower volatility than the broader global equity market by investing across many markets and industries.
With our numbers for December 2021, VMIN’s FUM stood at $17.48 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Multifactor sector ETFs, using our full list of ETFs.
A look at the VMIN ETF fee load?
Vanguard, the ETF issuer, charges a yearly management fee of 0.28% for the VMIN ETF. Meaning, if you invest $2,000 for a full year from now you can expect to pay a management fee of around $5.60.
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.
Want to know more? Get our team’s free VMIN ETF review. Simply click here now.
