How the IEU ETF fits into an ASX portfolio
The iShares IEU ETF provides investors with a broad exposure to leading European companies. This is a low-cost way to access a variety of European companies through a single fund.
Investors might use the IEU ETF to gain exposure to European stocks, across 16 European markets. You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process.
IEU meets our minimum level for FUM
The iShares IEU ETF had $798.41 million of money invested when we last pulled the monthly numbers. Given IEU’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 0.60% for the IEU ETF. This means that if you invested $2,000 in IEU for a full year, you could expect to pay management fees of around $12.00.
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 IEU 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.
