Is IXJ a good ETF?
IXJ is the iShares Global Healthcare ETF from iShares. It tracks the S&P Global 1200 Health Care Sector Index. We classify it under Intl, Thematic, and Market-Cap. With about $1.44 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, IXJ has delivered 8.9% a year over 10 years (ranked 57th of 108 ETFs we track), 5.27% a year over 5 years (ranked 120th of 188 ETFs we track), 5.13% a year over 3 years (ranked 174th of 226 ETFs we track), and 12.07% a year over 1 year (ranked 100th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.4% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. It pays a moderate 1.61% yield.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 11.62%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.6 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 5% 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
- Low-cost: a 0.4% management fee keeps more of the return in your pocket.
Things to watch
- Has lagged most peers over 3 years (174th of 226).
- Highly concentrated single-theme bet — keep the position size small.
What IXJ'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.
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.