Is AESG a good ETF?
AESG is the iShares Global Aggregate Bond ESG (AUD Hedged) ETF from iShares. We classify it under Bonds and Intl. With about $439 million in assets it is a solidly established fund.
On a total-return basis, AESG has delivered 3.07% a year over 3 years (ranked 205th of 226 ETFs we track) and 1.81% a year over 1 year (ranked 220th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.2% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. If cost is your priority, AGGG (0.18%) and WBND (0.19%) cover similar ground for less. It pays a moderate 3.26% yield.
Over the past 3 years its volatility has been low (annualised standard deviation around 4.05%), meaning a relatively smooth ride.
Strengths
- Low-cost: a 0.2% management fee keeps more of the return in your pocket.
- Low volatility (4.05% over 3 years) for a smoother ride.
Things to watch
- Has lagged most peers over 3 years (205th of 226).
- Cheaper alternatives exist: AGGG and WBND.
What AESG's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.