If you’re on the hunt for exposure to the International shares sector, it could be worth adding the iShares S&P Global 100 ETF (ASX: IOO) to your ASX watchlist. Let’s take a closer look at this iShares ETF.
What is the IOO ETF used for?
The iShares IOO ETF provides investors with exposure to 100 leading, multi-national companies across global share markets. This is a low-cost way to access a variety of global companies through a single fund.
Keep an eye on FUM
The iShares IOO ETF had $1957.58 million of money invested when we last pulled the monthly numbers. Given IOO’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.
Fees and costs for investors
iShares charges investors a yearly management fee of 0.40% for the IOO ETF. This means that if you invested $2,000 in IOO for a full year, you could expect to pay management fees of around $8.00.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the IOO ETF. Before doing anything, take a look at our iShares IOO report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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