Is AUMF a good ETF?
AUMF is the iShares Edge MSCI Australia Multifactor ETF from iShares. We classify it under AU, Thematic, and Factor. With about $146 million in assets it is a solidly established fund.
On a total-return basis, AUMF has delivered 7.72% a year over 5 years (ranked 91st of 188 ETFs we track), 12.21% a year over 3 years (ranked 93rd of 226 ETFs we track), and 5.29% a year over 1 year (ranked 182nd of 308 ETFs we track).
The management fee of 0.3% is reasonable. That's cheaper than the typical 0.39% for similar ETFs. If cost is your priority, GRPA (0.25%) cover similar ground for less. It pays a moderate 2.85% yield.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 12.58%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.4 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Low-cost: a 0.3% management fee keeps more of the return in your pocket.
Things to watch
- Cheaper alternatives exist: GRPA.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.4).
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 75% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What AUMF's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
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.