Spotlight: iShares Core S&P/ASX 200 ETF (ASX: IOZ)
Over the past 18 months, we've been using our Spotlight series to shine a light on our ETF portfolios. We're now expanding the series to focus on the individual ETFs that help power those portfolios - or are available through InvestSMART Custom.
To kick things off, we're focusing on the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which we use to provide exposure to Australian shares. Here's what you need to know.
About the iShares Core S&P/ASX 200 ETF (ASX: IOZ)
The iShares Core S&P/ASX 200 ETF (ASX: IOZ) is diversified across the 200 largest companies in Australia weighted by market capitalisation.
IOZ is managed by BlackRock - the largest asset manager in the world - and according to its website it's likely to be appropriate for investors with a medium to high risk/return profile. The minimum suggested investment timeframe is five years.
Here are a few quick facts about IOZ:
- Investment manager: BlackRock
- Inception date: 6 December 2010
- Size: $7.28bn
- Management fee: 0.05%
- Benchmark index: S&P/ASX 200 Accumulation Index
- InvestSMART rating: 5 stars
- Distribution frequency: Quarterly
- Rebalance frequency: Quarterly
Where is IOZ invested?
The ETF's top 10 holdings, which make up 47.68% of the portfolio, are listed below.
|
Company |
% of net assets |
|
Commonwealth Bank of Australia |
11.55% |
|
BHP Group Ltd |
7.62% |
|
CSL Ltd |
4.69% |
|
National Australia Bank Ltd |
4.58% |
|
Westpac Banking Corporation Corp |
4.38% |
|
Wesfarmers Ltd |
3.70% |
|
ANZ Group Holdings Ltd |
3.39% |
|
Macquarie Group Ltd Def |
2.98% |
|
Goodman Group Units |
2.62% |
|
Telstra Group Ltd |
2.17% |
Source: BlackRock. Holdings as of 31 May 2025.
From a sector perspective, as of 31 May 2025, IOZ's holdings include Financials 34.01%, Materials 18.17%, Health Care 9.31%, Consumer Discretionary 7.69% and Industrials 7.37%.
What is IOZ's management fee?
IOZ has a low management fee of just 0.05%, which is pretty similar to other ETFs that track Australia's top 200 companies. For example, State Street's SPDR S&P/ASX 200 Fund (ASX: STW) also charges 0.05%, while Betashares Australia 200 ETF (ASX: A200) is slightly cheaper at 0.04%.
How has IOZ performed?
IOZ is weighted by market capitalisation, so its performance and income mainly reflect how Australia's largest companies are doing. The good news is, they've had a solid run - IOZ has returned an average of 8.36% per year since it launched in December 2010. In the 12 months to the end of May 2025, IOZ delivered a strong 13.28%. The returns include both capital growth and distributions, and as you can see from the table, IOZ provides a healthy stream of income.
IOZ performance
|
|
1 year |
3 yrs p.a. |
5 yrs p.a. |
10 yrs p.a. |
SI p.a.1 |
|
Growth return |
9.56% |
4.72% |
7.68% |
3.13% |
3.76% |
|
Distribution return |
3.72% |
4.83% |
4.35% |
4.83% |
4.59% |
|
Total return |
13.28% |
9.55% |
12.02% |
7.96% |
8.36% |
|
Index |
13.36% |
9.62% |
12.11% |
8.08% |
8.51% |
Source: BlackRock. Returns (after management fees and costs) for the period ending 31 May 2025. 1Since inception on 6 December 2010.
Key takeouts
There's a lot to like about IOZ, including its size, diversification levels, ultra-low fee, and excellent performance since inception. Of course, keep in mind that past performance is not a guarantee of future returns.
Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating. If you'd like help selecting the right InvestSMART ETF portfolio for you check out our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The iShares Core S&P/ASX 200 ETF (ASX: IOZ) is an exchange-traded fund that provides exposure to the 200 largest companies in Australia, weighted by market capitalisation. It is managed by BlackRock and is suitable for investors with a medium to high risk/return profile.
The IOZ ETF is managed by BlackRock, the largest asset manager in the world. It was launched on December 6, 2010.
The IOZ ETF has a low management fee of 0.05%, which is competitive with other ETFs tracking Australia's top 200 companies.
Since its inception in December 2010, the IOZ ETF has delivered an average annual return of 8.36%. In the 12 months leading up to May 2025, it achieved a total return of 13.28%.
As of May 31, 2025, the top holdings of the IOZ ETF include Commonwealth Bank of Australia, BHP Group Ltd, CSL Ltd, National Australia Bank Ltd, and Westpac Banking Corporation Corp, among others.
The IOZ ETF invests in various sectors, with significant allocations in Financials (34.01%), Materials (18.17%), Health Care (9.31%), Consumer Discretionary (7.69%), and Industrials (7.37%).
The IOZ ETF distributes income to investors on a quarterly basis.
You can use InvestSMART's online ETF filter tool to compare the IOZ ETF with other options based on investment category or star rating. Additionally, InvestSMART offers a free statement of advice quiz to help you select the right ETF portfolio for your goals and investment timeframe.
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