Australian and ASX-listed ETFs like the iShares ILB ETF (ASX: ILB) are gaining more attention than ever because of how easy they make it for investors to get exposure to the Fixed interest – Australia sector. Here’s a quick review of the ILB ETF.
What does the ILB ETF do for a diversified portfolio?
The iShares ILB ETF provides investors with exposure to the performance of a segment of the Australian bond market comprised of inflation-linked fixed income securities.
How big is the iShares ILB ETF?
The iShares ILB ETF had $160.09 million of money invested when we last pulled the monthly numbers. Given ILB’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 Fixed interest – Australia sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
ILB ETF fees reviewed
iShares charges investors a yearly management fee of 0.18% for the ILB ETF. This means that if you invested $2,000 in ILB for a full year, you could expect to pay management fees of around $3.60.
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.
Even if you like what you see, before diving straight into buying the ILB ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our iShares ILB report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.