Is IBAL a good ETF?
IBAL is the iShares Balanced ESG ETF from iShares. We classify it under AU, Intl, and ESG. With about $25 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, IBAL has delivered 9.03% a year over 3 years (ranked 131st of 226 ETFs we track) and 4.4% a year over 1 year (ranked 194th of 308 ETFs we track).
The management fee of 0.22% is reasonable. That's cheaper than the typical 0.43% for similar ETFs. It pays a moderate 2.67% yield.
Over the past 3 years its volatility has been low (annualised standard deviation around 6.8%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 0.71 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 15% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- Low-cost: a 0.22% management fee keeps more of the return in your pocket.
- Low volatility (6.8% over 3 years) for a smoother ride.
Good to know
- Distributions are 15% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What IBAL'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.
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.
Screens out, or tilts away from, companies on environmental, social and governance criteria — letting you align your money with your values.
- Market regime
- Performance broadly tracks the wider market, but can drift when excluded sectors (e.g. energy, mining, weapons, tobacco) have a strong or weak run. Fees are usually a touch higher.
- In a portfolio
- Suitable as a core or near-core holding for values-driven investors; just understand which sectors are excluded and why returns may diverge from the broad index.
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.