How the IHVV ETF fits into an ASX portfolio
The iShares IHVV ETF provides investors with exposure to the largest 500 US companies. This is a low-cost way to access leading US companies through a single fund.
The IHVV ETF could be used by investors looking to gain exposure to large US equities, while hedging their exposure to the volatility of the Australian dollar.
IHVV meets our minimum level for FUM
The iShares IHVV ETF had $603.09 million of money invested when we last pulled the monthly numbers. Given IHVV’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 0.10% for the IHVV ETF. This means that if you invested $2,000 in IHVV for a full year, you could expect to pay management fees of around $2.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 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 IHVV 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.
