No. That's the way that you do it.
When you are in the documents view in Pages, you can tap the edit button in the upper right corner and the documents begin to wiggle and then you can drag on document on top of another one to creat a folder. Or yo can tap and hold down on a document until it wiggles and then drag into another document to creat a folder - just like you do with apps on the home screen.
If you can get it to work, sometimes it helps if you close the app completely in the recents tray and start all over again when you relaunch Pages. It might help to reboot the iPad as well. If yoy want to try that .....
Tap the home button once. Then tap the home button twice and the recents tray will appear at the bottom of the screen. Tap and hold down on any app icon until it begins to wiggle. Tap the minus ➖ sign in the upper left corner of the app that you want to close. Tap the home button twice to return to the home screen.
Reboot the iPad by holding down on the sleep and home buttons at the same time for about 10-15 seconds until the Apple Logo appears - ignore the red slider if it appears on the screen - let go of the buttons. Let the iPad start up.