If you’re considering getting exposure to the International shares sector, the iShares MSCI Japan ETF (ASX: IJP) might be one ASX ETF to watch in June.
How the IJP ETF fits into an ASX portfolio
The iShares IJP ETF provides investors with exposure to around 85% of the Japanese stock market. This is a low-cost way to access a specific market through a single fund.
The iShares IJP ETF could be used by investors looking to build a tactical position in their portfolio, with exposure to most of the Japanese stock market.
IJP meets our minimum level for FUM
The iShares IJP ETF had $428.15 million of money invested when we last pulled the monthly numbers. Given IJP’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 0.47% for the IJP ETF. This means that if you invested $2,000 in IJP for a full year, you could expect to pay management fees of around $9.40.
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 IJP 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.
