What is the IJP ETF used for?
The iShares IJP ETF provides investors with exposure to around 85% of the Japanese stock market. This is a low-cost way to access a specific market through a single fund.
The iShares IJP ETF could be used by investors looking to build a tactical position in their portfolio, with exposure to most of the Japanese stock market.
Keep an eye on FUM
The iShares IJP ETF had $417.48 million of money invested when we last pulled the monthly numbers. Given IJP’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.
Fees and costs for investors
iShares charges investors a yearly management fee of 0.47% for the IJP ETF. This means that if you invested $2,000 in IJP for a full year, you could expect to pay management fees of around $9.40.
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.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the IJP ETF. Before doing anything, take a look at our iShares IJP report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
