What does the IOZ ETF do for a diversified portfolio?
The iShares IOZ ETF provides exposure to the largest 200 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
The IOZ ETF could be used by investors to get exposure to a broad basket of Australia’s largest public companies. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
How big is the iShares IOZ ETF?
The iShares IOZ ETF had $4548.27 million of money invested when we last pulled the monthly numbers. Given IOZ’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.
IOZ ETF fees reviewed
iShares charges investors a yearly management fee of 0.09% for the IOZ ETF. This means that if you invested $2,000 in IOZ for a full year, you could expect to pay management fees of around $1.80.
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
Even if you like what you see, before diving straight into buying the IOZ ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our iShares IOZ report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
