Core exposures represent the basic building blocks in your asset allocation. Built to provide broad exposures across stock and bond indices, they are designed to be long term portfolio holdings for your clients.
Using iShares ETFs to build your core portfolio potentially frees up fee budget to use higher conviction alpha exposures, blending the best of index and alpha to realise your clients’ goals.
Looking to build your core? Our four core ETFs provide the most basic building blocks you need to build a resilient, well-diversified, global multi-asset portfolio.
Through investing in just four low-cost ETFs, you gain access to Australian equities, Australian fixed income, cash and international equities – all of which are often considered the core building blocks of any stable portfolio.
Building a quality portfolio can be made simpler by starting with the iShares’ core four.
A choice of four ETFs that you can readily access and invest with simplicity.
Aim to achieve return resilience and easily build a broadly diversified portfolio across major asset classes, accessing thousands of securities across the globe.
Source: BlackRock, 29 September 2023.
iShares’ four core ETFs offer broad stock and bond exposures by seeking to track high-quality, established indexes. Over the last five years, the funds have outperformed the majority of their index and active fund peers.1
Source: Morningstar, 31/08/2023. Performance is compared to peer universe of the respective ETFs over a 5 year annualised period.
Chart description: Peer universe for IOZ is the Morningstar Australian Equity Category, for IWLD is the Morningstar World Equity Category, for IAF is the Morningstar Australian Bond Category, for BILL is the Morningstar Australian Cash Category. Past performance does not guarantee future results. Funds included in Morningstar’s category universe include indexed and active funds. Material differences may exist between products being compared, such as, investment objectives, fees and expenses, types of investments made, countries or markets covered.
Build a quality portfolio using just four simple building blocks that can be tailored for different risk profiles and achieve competitive performance.2
Source: Morningstar, 31/07/2023. Past performance is not a reliable indicator of future performance. Material differences may exist between products being compared, such as, investment objectives, fees and expenses, types of investments made, countries or markets covered. Performance is only one factor to be taken into account when deciding whether to invest in a product.
Chart description: Quality portfolio - 01/08/2018 to 31/07/2023. The chart reflects the performance of a hypothetical investment in the quality portfolio of $AUD 10,000 over a specified period in time. The performance of the hypothetical investment is based on the actual past performance of the quality portfolio comprising IOZ, IWLD, IAF and BILL. The chart above reflects a hypothetical $100,000 investment in five different risk profiles. The growth/defensive split between the profiles are Conservative (15/85), Moderate (30/70), Balance (50/50), and Growth (70/30) and High Growth (85/15) compared to Morningstar’s multi-sector indices: Morningstar Multi-Sector Conservative Index, Morningstar Multi-Sector Moderate Index, Morningstar Multi-Sector Balanced Index, Morningstar Multi-Sector Growth Index and Morningstar Multi-Sector Aggressive Index respectively. IOZ and IWLD are considered growth assets. IAF and BILL are considered defensive assets. They are allocated equal weights in proportion to the growth/defensive split of the risk profile. For example, in the moderate profile IOZ (15%), IWLD (15%), IAF (35%) and BILL (35%).
Keeping overall portfolio costs low can help your clients reach their investment goals sooner. These iShares four core ETFs are much more cost competitive compared to their ETF peers.
Source: ASX ETP Landscape Report as at 31 August 2023. Management fee is only one factor to be taken into account when deciding whether to invest in a product. Other ongoing annual fees and costs may incur such as transaction costs.
Chart description: IOZ, IWLD, IAF and BILL’s management fees are compared to their asset class category as per ASX Investment Products – ETPs. See here for further details. Their respective categories are Equity Australia (IOZ), Equity – Global (IWLD), Fixed Income – Australian Dollar (IAF) and Cash (BILL). Bar chart that illustrates the management fee spread for each asset class category as defined by ASX. The line indicates where iShares core ETFs are priced per asset class category.
Quality performance
iShares Core ETFs have delivered competitive performance since their inception.3
Low cost
Keep overall portfolio costs low so that you can help your clients reach their investment goals sooner.
Simplicity
Each ETF is carefully curated, aimed to simplify your investing and designed to give you instant access to a diversified basket of equities.
ADVISER TOOL
Explore our ETF range and see how it may complement a portfolio that is invested in iShares’ multi-asset ETFs using our portfolio builder.
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1Source: Morningstar, 31/08/2023. Performance is compared to peer universe of the respective ETFs over a 5 year annualised period.
2Source: Morningstar, 31/07/2023. The chart above reflects a hypothetical $100,000 investment in five different risk profiles. Past performance is not a reliable indicator of future performance. Material differences may exist between products being compared, such as, investment objectives, fees and expenses, types of investments made, countries or markets covered. Performance is only one factor to be taken into account when deciding whether to invest in a product. The growth/defensive split between the profiles are Conservative (15/85), Moderate (30/70), Balance (50/50), and Growth (70/30) and High Growth (85/15) compared to Morningstar’s multi-sector indices: Morningstar Multi-Sector Conservative Index, Morningstar Multi-Sector Moderate Index, Morningstar Multi-Sector Balanced Index, Morningstar Multi-Sector Growth Index and Morningstar Multi-Sector Aggressive Index respectively. IOZ and IWLD are considered growth assets. IAF and BILL are considered defensive assets. They are allocated equal weights in proportion to the growth/defensive split of the risk profile. For example, in the moderate profile IOZ (15%), IWLD (15%), IAF (35%) and BILL (35%).
3Source: Morningstar, 30/12/2022. Performance is compared to other ETFs. Material differences may exist between products being compared, such as investment objectives, fees and expenses, types of investments made, countries or markets covered. Past performance is not a reliable indicator of future performance.
IMPORTANT INFORMATION
Issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523 (BIMAL) for the exclusive use of the recipient, which warrants by receipt of this material that it is a wholesale client as defined under the Australian Corporations Act 2001 (Cth).
This material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide on its website for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction.
Information provided is for illustrative and informational purposes and is subject to change. It has not been approved by any regulator.
This material is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. BIMAL is a part of the global BlackRock Group which comprises of financial product issuers and investment managers around the world. BIMAL is the issuer of financial products and acts as an investment manager in Australia.
BIMAL is the responsible entity and issuer of units in the Australian domiciled managed investment schemes referred to in this material, including the Australian domiciled iShares ETFs. Any potential investor should consider the latest product disclosure statement (PDS) before deciding whether to acquire, or continue to hold, an investment in any BlackRock fund. BlackRock has also issued a target market determination (TMD) that describes the class of consumers that comprises the target market for each BlackRock fund and matters relevant to their distribution and review. The PDS and the TMD can be obtained by contacting the BIMAL Client Services Centre on 1300 366 100. In some instances the PDS and the TMD are also available on the BIMAL website at www.blackrock.com/au. An iShares ETF is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular iShares ETF seeks to track. No index provider makes any representation regarding the advisability of investing in the iShares ETFs. Further information on the index providers can be found in the BIMAL website terms and conditions at www.blackrock.com/au.
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