Is ZILR a good ETF?
ZILR is the Ziller Global Fund Active ETF. We classify it under Intl and Active. With about $13 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, ZILR has delivered 8.15% a year over 3 years (ranked 144th of 226 ETFs we track) and -22.56% a year over 1 year (ranked 301st 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 1.53% is high, which is common for active, geared or thematic strategies and only worth paying if the approach justifies it. For comparison, similar ETFs average around 0.57%. If cost is your priority, BGBL (0.08%), VGS (0.18%), and GLOB (0.98%) cover similar ground for less. It pays a high 14.02% 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 high (annualised standard deviation around 22.14%), meaning a bumpy ride with deep drawdowns. Its 3-year Sharpe ratio of 0.28 is weak — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- High 14.02% income yield — good for investors who want regular cash flow.
Things to watch
- Has lagged most peers over 1 year (301st of 308).
- A 1.53% management fee is high and compounds against you over time.
- Pricier than similar ETFs, which average around 0.57%.
- Cheaper alternatives exist: BGBL, VGS, and GLOB.
- 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 0.28).
- High volatility (22.14% over 3 years) — expect deep drawdowns.
What ZILR'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.
Actively managed: a portfolio manager hand-picks holdings trying to beat the index, rather than simply tracking it. You pay more in fees for the chance of outperformance.
- Market regime
- Can add value in volatile, falling or inefficient markets where stock-picking and downside protection matter. In long, broad bull markets most active funds struggle to keep up with the cheap index after fees.
- In a portfolio
- Only worth holding if you have genuine conviction in the strategy — decades of evidence show the majority of active funds underperform their benchmark over 10+ years once fees are counted.
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.