What does the IEM ETF do for a diversified portfolio?
The iShares IEM ETF provides investors with exposure to a portfolio of over 800 companies from emerging markets, like China, India and Brazil.
IEM could be used by investors to gain a tactical exposure to emerging markets, and companies that often get overlooked by other ETFs. These companies provide long-term growth opportunities and can help to diversify your portfolio outside of Australia.
How big is the iShares IEM ETF?
The iShares IEM ETF had $811.03 million of money invested when we last pulled the monthly numbers. Given IEM’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.
IEM ETF fees reviewed
iShares charges investors a yearly management fee of 0.69% for the IEM ETF. This means that if you invested $2,000 in IEM for a full year, you could expect to pay management fees of around $13.80.
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 IEM ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our iShares IEM 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.