How to research the iShares S&P Global Consumer Staples ETF (ASX:IXI)

You might be sitting back and considering the iShares S&P Global Consumer Staples ETF (ASX: IXI) and thinking that February could be as good of a time as any to take closer look. Here’s how we would start our research.

Find out what the ETF does

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’s FUM meets our hurdle

The iShares IXI ETF had $190.59 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.

Pay attention to yearly costs & fees

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 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Our takeaway

If you’re thinking about investing in IXI, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free iShares IXI report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the International shares sector to do a good comparison.

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