What the iShares IHHY ETF actually does
The iShares IHHY ETF provides investors with exposure to the performance of high-yield corporate bonds across global markets and sectors, hedged into Australian dollars. This is a simple way to get exposure to high-yield corporate bonds across global developed markets in a single fund.
Investors could use the IHHY ETF to diverisify an existing portfolio and seek potentially higher levels of income compared to standard corporate bonds – all the while potentially minimising the impact of Australian dollar volatility on investment returns.
IHHY meets our minimum FUM criteria
The iShares IHHY ETF had $177.07 million of money invested when we last pulled the monthly numbers. Given IHHY’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 – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Don’t forget IHHY’s fees
iShares charges investors a yearly management fee of 0.56% for the IHHY ETF. This means that if you invested $2,000 in IHHY for a full year, you could expect to pay management fees of around $11.20.
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.
What to do next
If you’re weighing up investing in the IHHY ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free iShares IHHY report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the Fixed interest – International sector to compare your options.
