If you’re considering getting exposure to the International shares sector, the iShares S&P Asia 50 ETF (ASX: IAA) might be one ASX ETF to watch in November.
How the IAA ETF fits into an ASX portfolio
The iShares IAA ETF provides exposure to the performance of 50 large, established Asian companies listed on the stock exchanges of China, Hong Kong, South Korea, Singapore, Taiwan, and Macau.
IAA tracks the performance of the S&P Asia 50 Index which is an Asian-only shares index that typically includes exposure to 50 individual shares from many different industries. Some of the big names included in the index are Tencent and Samsung which both have sizeable weightings.
IAA meets our minimum level for FUM
The iShares IAA ETF had $802.43 million of money invested when we last pulled the monthly numbers. Given IAA’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 0.51% for the IAA ETF. This means that if you invested $2,000 in IAA for a full year, you could expect to pay management fees of around $10.20.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 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 IAA 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.
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