Find out what the ETF does
Investors looking for exposure to 50 high yielding Australian companies may find the iShares IHD ETF of interest. This is a low-cost way to access high-yielding Australian companies through a single fund.
Investors could use the iShares IHD ETF if they are looking for a diversified portfolio of Australian companies that have a track record of paying regular tax-effective dividends to their shareholders.
IHD’s FUM meets our hurdle
The iShares IHD ETF had $281.52 million of money invested when we last pulled the monthly numbers. Given IHD’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.
Pay attention to yearly costs & fees
iShares charges investors a yearly management fee of 0.30% for the IHD ETF. This means that if you invested $2,000 in IHD for a full year, you could expect to pay management fees of around $6.00.
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.
Our takeaway
If you’re thinking about investing in IHD, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free iShares IHD report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the Australian shares sector to do a good comparison.
