Getting exposure to the International shares sector has never been easier thanks to ASX ETFs like the iShares S&P Global Consumer Staples ETF (ASX: IXI). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review.
How the IXI ETF could be used in portfolios
The iShares IXI ETF provides investors with targeted exposure to global consumer staple companies. Think along the lines of milk, chocolate, soft drink, makeup, clothes and wine.
IXI could be used by investors to gain tactical exposure to the consumer staples sector, which includes a diverse range of companies that produce essential products. This ETF aims to track the S&P Global 1200 Consumer Staples Sector Index, before fees and expenses.
IXI exceeds our minimum market cap (FUM) criteria
The iShares IXI ETF had $151.13 million of money invested when we last pulled the monthly numbers. Given IXI’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.
IXI’s fees & costs explained
iShares charges investors a yearly management fee of 0.47% for the IXI ETF. This means that if you invested $2,000 in IXI for a full year, you could expect to pay management fees of around $9.40.
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.
Bottom line
This is just a quick overview of the IXI ETF. Before ‘testing the depth of the water with both feet’ so to speak, be sure to read the IXI ETF’s Product Disclosure Statement (PDS), available on the iShares website, or speak to your financial adviser. For another handy resource, take a look at our iShares IXI report. You can also 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.
