If you’re considering getting exposure to the International shares sector, the iShares Core MSCI World All Cap ETF (ASX: IWLD) might be one ASX ETF to watch in December.
How the IWLD ETF fits into an ASX portfolio
The iShares IWLD ETF provides investors with exposure to a globally diversified portfolio of over 3,800 companies. This is a low-cost way to access global companies from developed markets through a single fund.
IWLD could be used by investors to gain exposure to leading global companies. Investors can use ETFs to diversify their portfolios into international markets, as Australian investors are generally biased towards their own market.
IWLD meets our minimum level for FUM
The iShares IWLD ETF had $213.6 million of money invested when we last pulled the monthly numbers. Given IWLD’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.
What about management fees and costs?
iShares charges investors a yearly management fee of 0.10% for the IWLD ETF. This means that if you invested $2,000 in IWLD for a full year, you could expect to pay management fees of around $2.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our iShares IWLD report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
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