iShares S&P/ASX Small Ordinaries ETF (ISO)
About this Fund
|FUND MANAGER||BlackRock Investment Management (Australia)|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
|INVESTMENT STYLE||The Fund invests in a portfolio composed of small capitalisation Australian securities listed on the ASX.|
|INVESTMENT PROFILE||The Fund aims to provide investors with the performance of the Benchmark, before fees and expenses.|
|BENCHMARK||S&P/ASX Small Ordinaries Accumulation Index|
|FUND SIZE||S&P/ASX Small Ordinaries Accumulation Index|
|NO. OF HOLDINGS||Around 200|
Benefits of iShares
iShares ETFs are managed funds listed or quoted on exchanges (including ASX) providing you with the opportunity to gain exposure to a diversified portfolio of assets in a single transaction.
The significant benefits of investing in the Funds include:
Other benefits of investing in iShares ETFs generally include:
About the Fund
The fund aims to provide investors with the performance of an index, before fees and expenses, composed of small capitalisation Australian securities listed on the ASX.
The index, the S&P/ASX Small Ordinaries Accumulation Index, is comprised of companies included in the S&P/ASX 300 index, but not in the S&P/ASX 100 index, and accounts for approximately 7% of the market capitalisation of ASX listed equities.
How we invest your money
The Fund seeks to achieve its objective by tracking the performance of the S&P/ASX Small Ordinaries Total Return Index (referred to as the Index).
We will generally implement a full replication investment strategy to track the performance of the Index as risk relative to the Index is minimised. Our full-replication approach normally aims to purchase every security in the Index, while considering transaction costs.
However, where full replication is not possible, due to liquidity and transaction cost considerations, an optimisation investment strategy may be used.
Optimisation is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures, similar to those of the Index. Therefore, the Fund may or may not hold all of the securities in the Index and the weighting of the securities held by the Fund may differ to the weighting of securities in the Index.
What does the Fund invest in?
The Fund generally invests in the Australian equity securities that form the Index.
The Fund may have limited exposure to securities that are not constituents of the Index, including derivatives, where such securities provide similar performance (with matching risk profile) to Index securities. However, from time to time the Fund may be exposed to all constituents of the Index.
Generally, the Fund may also hold a small allocation of cash (or cash equivalents, that may include other BlackRock Group funds) for cash flow management purposes.
About the Index
The Index is used as an institutional benchmark for small capitalisation Australian equity portfolios. The Index is comprised of companies included in the S&P/ASX 300 Index, but not in the S&P/ASX 100 Index.
The S&P/ASX Index series is calculated using a base-weighted aggregate methodology. This means that the level of an index reflects the total market value of all the component stocks relative to a particular base period.
For more information please see Section 8 of the PDS