A world of opportunities
Tax, currency and other perceived risks have traditionally fuelled a home bias among local investors. Now, through the simplicity of ETFs, investors can tap into global stocks that are increasingly becoming household names and driving transformation in today’s world.
iShares ETFs cover a broad range of asset classes, risk profiles and investment outcomes. To understand the appropriateness of this fund for your investment objective, please visit our product webpage.
iShares Global 100 ETF
https://www.blackrock.com/au/products/273428/ishares-global-100-etf
This product is likely to be appropriate for a consumer:
• who is seeking capital growth
• using the product for a major allocation of their portfolio or less
• with a minimum investment timeframe of 5 years, and
• with a medium to high risk/return profile
iShares Global 100 (AUD Hedged) ETF (IHOO)
https://www.blackrock.com/au/products/271031/
This product is likely to be appropriate for a consumer:
• who is seeking capital growth
• using the product for a major allocation of their portfolio or less
• with a minimum investment timeframe of 5 years, and
• with a high to very high risk/return profile
Looking to invest in the world’s biggest stocks?
The iShares Global 100 ETF, or IOO, gives you access to some of the most important ‘mega-cap’ names driving global economic growth today, including tech stocks such as Apple, Amazon and Alphabet, and global powerhouses like Eli Lilly, JPMorgan and Exxon.
IOO tracks an index composed of 100 stocks of global importance. To be part of the index, a company must be truly global with more than 30 per cent of its revenue from outside its home region, and have revenue exposure across America, Europe and Asia Pacific.
Generating over 15% average returns over the last 10 years, IOO has delivered consistent top tier performance compared to other global equity ETFs.
You can also reduce the currency risk in your investment through the Australian dollar hedged version of the fund, IHOO.
Investors should be aware that there are risks involved in investing in global equity markets, including concentration risk and the risk of a sudden drawdown in assets.
For more information on IOO, reach out to your adviser or visit blackrock.com/au.
Global investing made easy
Global equity ETFs represent a simple, efficient way for investors to gain access to growth opportunities in overseas markets. Local investors are increasingly realising the benefits that ETFs provide when it comes to accessing global markets.
ETFs can play an important role in broadening out the choice available to investors, by enabling easy access to potentially hundreds of international stocks through a single trade on the local exchange. In some cases, global exposures also have a currency hedged version, providing Australian investors with a valuable tool for their global investing journey.
Overcoming home bias
While Australians are known for their love of globetrotting, the same can’t be said for our investing behaviour. According to the latest ASX Australian Investor Study, just 16% of investors held international shares in their portfolio, compared to 58% who owned domestic shares.1
But with Australian shares making up 2% of global equity markets (see chart below)2, local investors are missing out on a major source of diversification and growth by not tapping into overseas markets. For instance, over the last 10 years the S&P Global 100 Index has almost doubled the gains of the ASX 200, with 14.6% annualised returns versus 7.5%.3
Australian equities vs global counterparts
Top 10 constituents, S&P Global 1200 Index
Source: S&P Dow Jones Indices, 1 April 2025. Note the S&P Global 1200 Index represents approximately 70% of total global equity market capitalisation
While tax implications, currency fluctuations, and a lack of familiarity with overseas names may have commonly contributed to Australians’ reluctance to go global with their investments, ETFs can help to solve a number of these issues.
The convenience of a locally listed structure, with options to hedge against currency risk, can give investors more confidence to access some of the global stocks that are fast becoming the household names of the modern age.
Benefits of global equities ETFs
Diversification
Exposure to sectors that are harder to access through the Australian equity market, such as technology, consumer discretionary and healthcare4
Performance
$100 invested in the S&P Global 100 index over the last decade would have yielded more than $300, versus just over $200 if you’d invested in the ASX 2005
Tap into global ‘mega forces’
Access key megatrends driving long-term economic growth, such as the AI revolution and ageing population
Diversify into new horizons
For investors with an existing portfolio of Australian shares, global equities ETFs can help to add useful diversification across geographies and sectors, particularly when we consider the concentrated nature of the Australian equity market (see chart below).6
|
SECTOR |
IOZ – ASX 200 |
IOO – S&P Global 100 |
|
Financials |
33.26% |
10.61% |
|
Materials |
19.08% |
1.88% |
|
Healthcare |
9.66% |
10.25% |
|
Consumer Discretionary |
7.65% |
9.99% |
|
Information Technology |
2.8% |
41.4% |
Source: BlackRock, 2 April 2025
As you can see, access to the S&P Global 100 Index may boost exposure to sectors like technology, consumer discretionary and healthcare for Australian investors. Within these sectors, the key underlying stocks of the index are the brand names behind some of the key products we use in everyday life.
Sector snapshot: Technology
Top holding: Apple*
The company behind the iPhone, Apple became the largest smartphone manufacturer by volumes, revenues and profit in 2023.7
Sector snapshot: Consumer discretionary
Top holding: Amazon*
This online retail giant is also the world’s largest cloud computing company by market share through its Amazon Web Services platform.8
Sector snapshot: Healthcare
Top holding: Eli Lilly*
This US pharmaceutical company is the manufacturer of GLP-1 weight loss drug Mounjaro, which recorded more than US$11 billion in sales in 2024.9
Winner of Money Magazines Best International Shares ETF 202510
