Is ITEK a good ETF?
ITEK is the iShares Future Tech Innovators ETF from iShares. We classify it under Intl, Thematic, Growth, and Tech. With about $10 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, ITEK has delivered 9.86% a year over 3 years (ranked 119th of 226 ETFs we track) and 14.34% a year over 1 year (ranked 85th of 308 ETFs we track).
The management fee of 0.35% is reasonable. That's cheaper than the typical 0.48% for similar ETFs. If cost is your priority, WWWW (0.17%) cover similar ground for less. It pays a high 8.63% 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 3 years its volatility has been elevated (annualised standard deviation around 17.12%), meaning noticeably larger swings than the broad market. Its 3-year Sharpe ratio of 0.4 is weak — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
- High 8.63% income yield — good for investors who want regular cash flow.
Things to watch
- Cheaper alternatives exist: WWWW.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.4).
- Highly concentrated single-theme bet — keep the position size small.
What ITEK'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.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
Companies expected to grow earnings quickly, which typically reinvest profits rather than pay dividends. Low yield, higher volatility, valuation-driven.
- Market regime
- Shines when interest rates are low or falling and risk appetite is high. Hit hardest when rates rise, because more of their value sits in distant future earnings.
- In a portfolio
- Long-horizon growth engine for investors who can stomach deeper drawdowns and little income along the way.
Concentrated in technology and high-growth innovation. The highest long-run growth potential on offer, paired with the deepest drawdowns.
- Market regime
- Very sensitive to interest rates and sentiment: powers ahead when money is cheap and optimism is high, and falls hardest when rates rise or risk appetite sours. Low dividends, high volatility.
- In a portfolio
- A long-horizon, high-conviction holding for investors with a strong stomach. Size the position so a 40-50% drawdown wouldn't derail your plan.
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.