If you’re looking for an ASX ETF in the Fixed interest – Australia sector, chances are, the iShares Government Inflation ETF (ASX: ILB) is an ETF you’re considering. Here’s what you need to know.
How ASX investors can use the ILB ETF
The iShares ILB ETF provides investors with exposure to the performance of a segment of the Australian bond market comprised of inflation-linked fixed income securities.
ILB meets our minimum market cap (FUM) criteria
The iShares ILB ETF had $252.91 million of money invested when we last pulled the monthly numbers. Given ILB’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 Fixed interest – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
ILB ETF fees explained
iShares charges investors a yearly management fee of 0.18% for the ILB ETF. This means that if you invested $2,000 in ILB for a full year, you could expect to pay management fees of around $3.60.
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.
Putting it all together
If you’re weighing up investing in ILB, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free iShares ILB report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – Australia sector to compare your options.
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