How the IZZ ETF fits into an ASX portfolio
The iShares IZZ ETF provides investors with exposure to the 50 largest and most liquid companies in China which are listed on the Hong Kong Stock Exchange.
IZZ could be used by investors to gain tactical exposure to the Chinese economy by investing in some of the largest Chinese companies. Investors can use ETFs to diversify their portfolios into international markets, as Australian investors are typically biased towards their own market.
IZZ meets our minimum level for FUM
The iShares IZZ ETF had $255.4 million of money invested when we last pulled the monthly numbers. Given IZZ’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 0.77% for the IZZ ETF. This means that if you invested $2,000 in IZZ for a full year, you could expect to pay management fees of around $15.40.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our iShares IZZ 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.
