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Want to invest ethically for a brighter future? 
(but still make lots of money)?

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Is iShares Core S&P/ASX 200 ETF a good investment?

Is iShares Core S&P/ASX 200 ETF (ASX: IOZ) a good investment?

What is the purpose of the ETF?

As the name would suggest, it’s an ETF that is invested in the ASX 200 – which is 200 of the biggest businesses listed in Australia.

The ‘iShares’ part is the provider of the ETF, called Blackrock. One of the biggest asset managers and ETF providers in the world.

What are some of the shares it’s invested in?

An ETF is only as good as its holdings. That’s why the US ETFs have performed so well over the past decade, because the big tech FAANG names have done brilliantly.

At the end of May 2020, the iShares Core S&P/ASX 200 ETF’s biggest holdings in size order were CSL (ASX: CSL), CBA (ASX: CBA), BHP (ASX: BHP), Westpac (ASX: WBC), NAB (ASX: NAB), ANZ (ASX: ANZ), Woolworths (ASX: WOW), Wesfarmers (ASX: WES), Telstra (ASX: TLS) and Transurban (ASX: TCL). Australia’s bluest of blue chips.

What are some of the advantages of iShares Core S&P/ASX 200 ETF?

There are a few key factors that make this ETF a good one to consider.

Low fees

Fees can act like termites on your nest egg if they’re too high. If you’re investing an index-based product you want the fees to be as low as possible. iShares Core S&P/ASX 200 ETF has an annual management fee of just 0.09%, which is cheaper than Vanguard Australian Shares Index ETF (ASX: VAS) but slightly more expensive than BetaShares Australia 200 ETF (ASX: A200). Any of them is a good option.

Diversification

One of the best reasons to consider this ETF, or any decent ETF, is the diversification on offer. It would cost a ton of brokerage to go out and buy shares in 200 businesses yourself. With this investment you get diversification to 200 businesses with a single investment.

Those 200 businesses are spread across a variety of industries including financials, materials, health care, industrials, real estate, consumer discretionary, consumer staples, communication, energy, IT and utilities. You don’t have to worry about which industry to invest in – the ETF will automatically rebalance.

High dividend yield

There’s a double income benefit for dividends from this ETF. The first is that it has a high trailing dividend yield. The 12-month trailing dividend yield was 4.7% at the end of May 2020, although some of those dividends will be cut in the short term.

The second benefit is that Australian companies attach franking credits to the dividend, boosting the yield further.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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