1. Exposure
The iShares WVOL ETF provides exposure to the performance of developed share markets that, on the whole, have lower volatility characteristics relative to the broader global developed share markets.
Investors could use WVOL to obtain diversified exposure to a broad basket of global stocks with potentially less risk. Minimum volatility strategies implemented by the underlying index of this ETF aim to lose less than the broad market during downturns.
2. Funds under management (FUM)
The iShares WVOL ETF had $254.25 million of money invested when we last pulled the monthly numbers. Given WVOL’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.
3. Management fees & costs matter
iShares charges investors a yearly management fee of 0.30% for the WVOL ETF. This means that if you invested $2,000 in WVOL 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.
What now?
These are just some of the considerations or factors you would need to consider when weighing up the WVOL ETF. If you’re looking to do some further digging, be sure to read our iShares WVOL report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs. You can filter the results according to sector, issuer, size, and more.
