How the IOO ETF fits into an ASX portfolio
The iShares IOO ETF provides investors with exposure to 100 leading, multi-national companies across global share markets. This is a low-cost way to access a variety of global companies through a single fund.
IOO could be used by investors to gain exposure to a portfolio of 100 leading global companies. IOO tracks the S&P Global 100 Index, which includes 100 âblue-chipâ companies of major importance in global equity markets.
IOO meets our minimum level for FUM
The iShares IOO ETF had $2525.04 million of money invested when we last pulled the monthly numbers. Given IOO’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 0.40% for the IOO ETF. This means that if you invested $2,000 in IOO for a full year, you could expect to pay management fees of around $8.00.
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.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our iShares IOO report â 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.