Like us, you might have noticed the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the IHD ETF do for investors?
Investors looking for exposure to 50 high yielding Australian companies may find the iShares IHD ETF of interest. This is a low-cost way to access high-yielding Australian companies through a single fund.
Investors could use the iShares IHD ETF if they are looking for a diversified portfolio of Australian companies that have a track record of paying regular tax-effective dividends to their shareholders.
2. Funds under management (FUM)
The iShares IHD ETF had $295.82 million of money invested when we last pulled the monthly numbers. Given IHD’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
iShares charges investors a yearly management fee of 0.30% for the IHD ETF. This means that if you invested $2,000 in IHD for a full year, you could expect to pay management fees of around $6.00.
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.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the IHD ETF. Before you go any further, take a look at our free iShares IHD report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
