Is IZZ a good ETF?
IZZ is the iShares China Large-Cap ETF from iShares. It tracks the FTSE China 50 Index. We classify it under EM, Asia, Large-Cap, and Market-Cap. With about $457 million in assets it is a solidly established fund. Listed on the ASX since 2007-11-12 (almost 19 years ago).
On a total-return basis, IZZ has delivered 3.4% a year over 10 years (ranked 84th of 108 ETFs we track), 0.89% a year over 5 years (ranked 156th of 188 ETFs we track), 7.19% a year over 3 years (ranked 152nd of 226 ETFs we track), and -9.38% a year over 1 year (ranked 288th 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 0.6% is on the higher side. For comparison, similar ETFs average around 0.3%. If cost is your priority, IAA (0.29%), VAE (0.4%), and AVTE (0.45%) cover similar ground for less. It pays a moderate 1.8% yield.
Over the past 10 years its volatility has been elevated (annualised standard deviation around 21.49%), meaning noticeably larger swings than the broad market. Its 10-year Sharpe ratio of 0.16 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Things to watch
- Has lagged most peers over 1 year (288th of 308).
- Pricier than similar ETFs, which average around 0.3%.
- Cheaper alternatives exist: IAA, VAE, and AVTE.
- Weak risk-adjusted returns (10-year Sharpe ratio 0.16).
What IZZ's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Emerging markets — developing economies such as China, India, Brazil and Taiwan. High growth potential with materially higher volatility, currency and political risk.
- Market regime
- Often trades at cheaper valuations than developed markets and performs well in global risk-on phases and when the US dollar is weak. Can endure long stretches of underperformance.
- In a portfolio
- A satellite growth allocation for patient investors with a long horizon and tolerance for big swings.
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.
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.
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.