Is IHWL a good ETF?
IHWL is the iShares Core MSCI World ex Australia ESG (AUD Hedged) ETF from iShares. We classify it under Intl, Large-Cap, Market-Cap, and ESG. With about $1.03 billion in assets it is a large, highly liquid fund.
On a total-return basis, IHWL has delivered 12.51% a year over 10 years (ranked 23rd of 108 ETFs we track), 11.15% a year over 5 years (ranked 42nd of 188 ETFs we track), 17.58% a year over 3 years (ranked 40th of 226 ETFs we track), and 19.83% a year over 1 year (ranked 49th of 308 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 16% of all ETFs we track.
The management fee of 0.15% is very low — typical of low-cost index funds. That's cheaper than the typical 0.48% for similar ETFs. If cost is your priority, BGBL (0.08%), WXHG (0.1%), and HGBL (0.11%) cover similar ground for less. It pays a high 5.65% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. 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.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 14.67%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.73 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-16% returns over 1 year (49th of 308 ETFs we track).
- Low-cost: a 0.15% management fee keeps more of the return in your pocket.
- High 5.65% income yield — good for investors who want regular cash flow.
Things to watch
- Cheaper alternatives exist: BGBL, WXHG, and HGBL.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What IHWL'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.
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.
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.