How ASX investors can use the IHD ETF
Investors looking for exposure to 50 high yielding Australian companies may find the iShares IHD ETF of interest. This is a low-cost way to access high-yielding Australian companies through a single fund.
Investors could use the iShares IHD ETF if they are looking for a diversified portfolio of Australian companies that have a track record of paying regular tax-effective dividends to their shareholders.
IHD meets our minimum market cap (FUM) criteria
The iShares IHD ETF had $281.52 million of money invested when we last pulled the monthly numbers. Given IHD’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 Australian shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
IHD ETF fees explained
iShares charges investors a yearly management fee of 0.30% for the IHD ETF. This means that if you invested $2,000 in IHD for a full year, you could expect to pay management fees of around $6.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% 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.
Putting it all together
If you’re weighing up investing in IHD, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free iShares IHD report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the Australian shares sector to compare your options.
