What does the IHHY ETF do for a diversified portfolio?
The iShares IHHY ETF provides investors with exposure to the performance of high-yield corporate bonds across global markets and sectors, hedged into Australian dollars. This is a simple way to get exposure to high-yield corporate bonds across global developed markets in a single fund.
Investors could use the IHHY ETF to diverisify an existing portfolio and seek potentially higher levels of income compared to standard corporate bonds – all the while potentially minimising the impact of Australian dollar volatility on investment returns.
How big is the iShares IHHY ETF?
The iShares IHHY ETF had $177.07 million of money invested when we last pulled the monthly numbers. Given IHHY’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 Fixed interest – International sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
IHHY ETF fees reviewed
iShares charges investors a yearly management fee of 0.56% for the IHHY ETF. This means that if you invested $2,000 in IHHY for a full year, you could expect to pay management fees of around $11.20.
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
Even if you like what you see, before diving straight into buying the IHHY ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our iShares IHHY report for a more comprehensive overview of this ETF. While you’re on our website, 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.
