What is the IOZ ETF used for?
The iShares IOZ ETF provides exposure to the largest 200 Australian shares, based on market capitalisation. This is a low-cost way to access top Australian companies through a single fund.
The IOZ ETF could be used by investors to get exposure to a broad basket of Australia’s largest public companies. These Australian companies are likely to grow their profits over time and have a track record of paying regular tax-effective dividends for their shareholders.
Keep an eye on FUM
The iShares IOZ ETF had $4548.27 million of money invested when we last pulled the monthly numbers. Given IOZ’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.
Fees and costs for investors
iShares charges investors a yearly management fee of 0.09% for the IOZ ETF. This means that if you invested $2,000 in IOZ for a full year, you could expect to pay management fees of around $1.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% 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 IOZ ETF. Before doing anything, take a look at our iShares IOZ report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
