International Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) over International indicies were launched on ASX in 2007 and the range of international ETFs has grown rapidly since. They can provide investors with a low cost and easy way to gain international exposure to both established and emerging markets while investors can take comfort that they trade and settle on ASX just like any other share.

International ETFs seek to replicate the performance of the overseas index and are traded and settled on ASX in Australian dollars. As the current range of international ETFs are not hedged, fluctuations in the exchange rate can affect the value of the portfolio.

The table below lists the ASX code of each international ETF and its respective underlying strategy. The name of each fund includes a reference to the underlying index and the sponsor of that index.  The index sponsor is responsible for choosing the components of that index.

Fund Name ASX Code Composition
iShares  S&P Asia 50 IAA Reflects price and yield performance of 50 stocks across four countries, Hong Kong, Korea, Taiwan & Singapore 
iShares MSCI BRIC Index Fund IBK Reflects price and yield performance of securities traded in emerging market country indices of Brazil, Russia, India and China 
iShares MSCI Japan IJP Reflects the performance of the Japanese equity market
iShares MSCI Emerging Markets IEM Leading companies in 22 emerging countries and 10 industry sectors
iShares S&P Global 100 IOO 100 large transnational companies with minimum capitalisation of US$5bn
iShares S&P 500 IVV US large-cap stocks across a range of industries
iShares S&P Midcap 400 IJH US stocks capitalised at US$750m to US$3.3bn
iShares S&P Smallcap 600 IJR US stocks capitalised at US$200m to US$1bn
iShares MSCI EAFE IVE Reflects European, Australasian and Far East market’s performance
iShares S&P Europe 350 IEU 350 stocks in 17 European markets and 10 industry sectors
iShares FTSE/Xinhua China 25 IZZ Reflects the leading 25 companies in the fast-growing China market
iShares MSCI Hong Kong IHK Representative of the Hong Kong market
iShares MSCI South Korea IKO Reflects the main South Korea market
iShares MSCI Singapore ISG Tracks the Singapore market
iShares MSCI Taiwan ITW Reflects the performance of leading Taiwan-based companies
iShares Russell 2000 IRU  US small-cap stocks
Vanguard All-World ex US Shares Index VEU  Tracks the performance of a benchmark index (FTSE ALL-World ex US Index) that measures the investment returns of stocks of companies located in developed and emegerging markets around the world, excluding the US market.
Vanguard US Total Market Shares Index VTS Tracks the performance of a benchmark index (MSCI US Broad Market Index)that measures the investment return of the overall US stock market

Market Making

To help ensure liquidity in the international ETFs, two companies, Citigroup and Susquehanna have been contracted as Market Makers in the iShares and Vanguard range of ETFs listed on ASX. When the Market Makers consistently achieve two-sided markets in the ETFs within the maximum spread and the minimum quantity they receive fee rebates.

Bid Price in $AUD for Shares Maximum Spread Minimum Quantity
$25< 15c 1000
>$25-$50 25c 500
>$50-$100 65c 100
>100-$150 100c 50
>150-$200 125c 50
>$200-$250 150c 50
>$250 200c 50