How ASX investors can use the IAA ETF
The iShares IAA ETF provides exposure to the performance of 50 large, established Asian companies listed on the stock exchanges of China, Hong Kong, South Korea, Singapore, Taiwan, and Macau.
Investors could use IAA to get exposure to a basket of Asia’s largest public companies, including technology, financials, and communication companies. So, IAA could be used to diversify an ASX-focused portfolio internationally and take a position in leading Asian companies.
IAA meets our minimum market cap (FUM) criteria
The iShares IAA ETF had $665.39 million of money invested when we last pulled the monthly numbers. Given IAA’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.
IAA ETF fees explained
iShares charges investors a yearly management fee of 0.51% for the IAA ETF. This means that if you invested $2,000 in IAA for a full year, you could expect to pay management fees of around $10.20.
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.
Putting it all together
If you’re weighing up investing in IAA, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free iShares IAA report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.
