The iShares S&P Europe ETF (ASX: IEU) could be one to watch in March and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the iShares IEU ETF actually does
The iShares IEU ETF provides investors with a broad exposure to leading European companies. This is a low-cost way to access a variety of European companies through a single fund.
IEU meets our minimum FUM criteria
The iShares IEU ETF had $549.13 million of money invested when we last pulled the monthly numbers. Given IEU’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.
Don’t forget IEU’s fees
iShares charges investors a yearly management fee of 0.60% for the IEU ETF. This means that if you invested $2,000 in IEU for a full year, you could expect to pay management fees of around $12.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What to do next
If you’re weighing up investing in the IEU ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free iShares IEU report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
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