If you’re considering getting exposure to the International shares sector, the iShares Global 100 AUD Hedged ETF (ASX: IHOO) might be one ASX ETF to watch in November.
How the IHOO ETF fits into an ASX portfolio
The iShares IHOO ETF provides investors with exposure to the largest 100 global companies. This is a low-cost way to access a variety of global companies through a single fund.
The iShares IHOO ETF could be used by investors looking to gain global exposure to equities, while hedging their exposure to the volatility of the Australian dollar on the holdings.
IHOO meets our minimum level for FUM
The iShares IHOO ETF had $143.27 million of money invested when we last pulled the monthly numbers. Given IHOO’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 0.43% for the IHOO ETF. This means that if you invested $2,000 in IHOO for a full year, you could expect to pay management fees of around $8.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% 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.
Before buying any ETF based on what you read here on Best ETFs, check out our iShares IHOO 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.