Is IAA a good ETF?
IAA is the iShares Asia 50 ETF from iShares. It tracks the MSCI AC Asia 50 Index. We classify it under Asia, Large-Cap, and Market-Cap. With about $1.7 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2007-11-12 (almost 19 years ago).
On a total-return basis, IAA has delivered 14.51% a year over 10 years (ranked 12th of 108 ETFs we track), 13.83% a year over 5 years (ranked 20th of 188 ETFs we track), 30.84% a year over 3 years (ranked 7th of 226 ETFs we track), and 54.27% a year over 1 year (ranked 8th of 308 ETFs we track). Its strongest showing is over 3 years, where it sits in the top 3% of all ETFs we track.
The management fee of 0.29% is reasonable. That's cheaper than the typical 0.3% for similar ETFs. It pays a moderate 1.54% yield.
Over the past 10 years its volatility has been elevated (annualised standard deviation around 18%), meaning noticeably larger swings than the broad market. Its 10-year Sharpe ratio of 0.72 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 5% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Top-3% returns over 3 years (7th of 226 ETFs we track).
- Low-cost: a 0.29% management fee keeps more of the return in your pocket.
What IAA's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Equities across Asian markets (often ex-Japan, frequently weighted to China, India, Taiwan and Korea). Exposure to faster-growing economies, with extra political, currency and governance risk.
- Market regime
- Tends to lead during global risk-on phases and when the US dollar is weak; lags badly in risk-off, flight-to-safety episodes.
- In a portfolio
- Best used as a satellite position to add growth and diversification, not as a core holding. Long horizon and tolerance for big swings required.
The biggest, most established companies. More stable earnings, lower volatility and often steadier dividends than the broad market.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; tends to lag small-caps and growth during the most aggressive bull runs.
- In a portfolio
- A dependable core building block suited to long-term holding.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
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.