iShares Core S&P/ASX 200 ETF
(ASX: IOZ)Share Price and News
About iShares Core S&P/ASX 200 ETF
Launched in December 2010, IOZ is designed to track the S&P/ASX 200 Accumulation Index, which comprises the 200 largest Australian securities listed on the ASX. This index represents approximately 80% of the Australian equity market's total capitalisation, offering investors broad exposure to the country's leading companies. The ETF employs a full replication strategy, aiming to hold all securities in the index in their respective weights.
IOZ Company History
Since its inception on 6 December 2010, IOZ has grown to become one of Australia's most prominent exchange-traded funds. Managed by BlackRock, the world's largest asset manager, IOZ has consistently attracted investors seeking low-cost, diversified exposure to Australian equities. Over the years, the fund has maintained its objective of closely tracking the S&P/ASX 200 Accumulation Index, providing investors with a reliable tool to access the Australian share market.
Future Outlook of iShares Core S&P/ASX 200 ETF (ASX: IOZ)
IOZ's performance is intrinsically linked to the Australian economy and the health of its largest companies. As of 30 April 2025, the fund reported a one-year total return of 9.71%, with three- and five-year annualised returns of 7.11% and 12.06%, respectively.
The Australian market's heavy weighting towards financials and materials means IOZ is particularly influenced by these sectors. Financials comprise approximately 30% of the index, while materials account for around 22%. Consequently, factors such as commodity prices, interest rates, and housing market trends can significantly impact the fund's performance.
Looking ahead, Australia's economic outlook remains cautiously optimistic, supported by stable interest rates and ongoing infrastructure projects. However, potential risks include global economic uncertainties and sector-specific challenges, particularly in banking and mining. Investors should monitor these developments, as they may affect the fund's future returns.
Is IOZ a Good Stock to Buy?
IOZ presents a compelling option for investors seeking broad exposure to the Australian equity market. With a low management fee of 0.05%, it offers cost-effective access to a diversified portfolio of the country's largest companies. The fund's dividend yield, influenced by the underlying companies' payouts, typically ranges between 3% and 5%, often accompanied by franking credits.
This makes IOZ attractive for income-focused investors. However, it is essential to consider the fund's concentration in specific sectors, notably financials and materials. While this provides exposure to some of Australia's most robust industries, it may also introduce sector-specific risks. Investors seeking broader diversification might consider complementing IOZ with international or sector-specific ETFs.
Overall, IOZ is well-suited for investors aiming for long-term capital growth and income through exposure to Australia's leading companies. Its low cost, liquidity, and alignment with the S&P/ASX 200 make it a valuable component of a diversified investment portfolio.
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Frequently Asked Questions
IOZ's dividend yield typically ranges between 3% and 5%, influenced by the underlying companies' payouts. These distributions often come with franking credits, enhancing after-tax returns for eligible investors.