Is IJP a good ETF?
IJP is the iShares MSCI Japan ETF from iShares. It tracks the MSCI Japan Index. We classify it under Intl, Asia, and Market-Cap. With about $1.6 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, IJP has delivered 9.98% a year over 10 years (ranked 43rd of 110 ETFs we track), 10.02% a year over 5 years (ranked 58th of 189 ETFs we track), 17.75% a year over 3 years (ranked 54th of 236 ETFs we track), and 21.27% a year over 1 year (ranked 37th of 318 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 12% of all ETFs we track.
The management fee of 0.5% is on the higher side. For comparison, similar ETFs average around 0.49%. If cost is your priority, VEU (0.04%), IAA (0.29%), and IVE (0.32%) cover similar ground for less. It pays a healthy 4.85% 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.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 11.05%), meaning the kind of swings you'd expect from a diversified equity fund. 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 3% 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-12% returns over 1 year (37th of 318 ETFs we track).
- Pays a useful 4.85% income yield.
Things to watch
- Pricier than similar ETFs, which average around 0.49%.
- Cheaper alternatives exist: VEU, IAA, and IVE.
What IJP'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.
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.
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.