You might be sitting back and considering the iShares S&P Global 100 ETF (ASX: IOO) and thinking that December could be as good of a time as any to take closer look. Here’s how we would start our research.
Find out what the ETF does
The iShares IOO ETF provides investors with exposure to 100 leading, multi-national companies across global share markets. This is a low-cost way to access a variety of global companies through a single fund.
IOO’s FUM meets our hurdle
The iShares IOO ETF had $1814.27 million of money invested when we last pulled the monthly numbers. Given IOO’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.
Pay attention to yearly costs & fees
iShares charges investors a yearly management fee of 0.4% for the IOO ETF. This means that if you invested $2,000 in IOO for a full year, you could expect to pay management fees of around $8.00.
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.
Our takeaway
If you’re thinking about investing in IOO, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free iShares IOO report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.
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