Is IHD a good ETF?
IHD is the iShares S&P/ASX Dividend Opportunities ESG Screened ETF from iShares. It tracks the S&P/ASX Dividend Opportunities ESG Screened Index. We classify it under AU, Dividend, and ESG. With about $408 million in assets it is a solidly established fund. Listed on the ASX since 2010-12-06 (almost 16 years ago).
On a total-return basis, IHD has delivered 8.19% a year over 10 years (ranked 63rd of 108 ETFs we track), 9.46% a year over 5 years (ranked 59th of 188 ETFs we track), 14.77% a year over 3 years (ranked 63rd of 226 ETFs we track), and 19.43% a year over 1 year (ranked 51st of 308 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 17% of all ETFs we track.
The management fee of 0.22% is reasonable. That's cheaper than the typical 0.35% for similar ETFs. If cost is your priority, IOZ (0.05%), VAS (0.07%), and SYI (0.2%) cover similar ground for less. It pays a healthy 3.95% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 80% franking softens the blow for Australian residents.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 13.57%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.49 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is moderate at about 35% 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
- Top-17% returns over 1 year (51st of 308 ETFs we track).
- Low-cost: a 0.22% management fee keeps more of the return in your pocket.
- Pays a useful 3.95% income yield.
Things to watch
- Cheaper alternatives exist: IOZ, VAS, and SYI.
- Weak risk-adjusted returns (10-year Sharpe ratio 0.49).
Good to know
- Distributions are 80% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What IHD'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.
Targets higher-yielding, cash-generative companies. Popular with retirees and income investors, and in Australia often comes with valuable franking credits.
- Market regime
- Tilts toward 'value' sectors such as banks, resources and utilities. Can lag in growth-led bull markets and concentrate risk, but tends to be more defensive when markets fall.
- In a portfolio
- Good for investors who want income now. Note the higher distributions are taxable each year, which is less efficient for those in higher brackets and in the accumulation phase.
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.