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iShares MSCI Emerging Markets ETF

Fund Manager: Blackrock
Inception Date: Oct 01, 2007

Blackrock Australia has recently announced that they will be converting 14 of their iShares US domiciled ETFs to Australian domiciled ETFs, removing the pesky W8-BEN form as a requirement for investors in these products. We took a look at the ETFs listed on the ASX last year which are cross listed. There are 25 in total. Removing these 14 in the list will greatly reduce the amount of these, making admin for Australian investors much simpler. What does this mean? Internationally domicile ... [More]

BlackRock restructures US-domiciled ETFs

Investor Daily - May 04, 2018

Speaking to InvestorDaily, BlackRock Australia head of iShares Jon Howie said 14 of its US-domiciled iShares ETF funds would be restructured into Australian-domiciled iShares ETFs. He said the reason for the conversion was because investors were finding it confusing to fill out the tax-related paperwork associated with investing in the US-domiciled funds. While the current standard tax withholding rate was 30 per cent, Australia’s tax treaty with the US meant investors could fill out a tax form called W-8BEN and have the tax rate reduced down to 15 per cent, Mr Howie said. However, the form was “not super easy to read” and needed to be filled out every three years, a process that investors had found “confusing” and “frustrating”. [More]

There are now around 80 ETFs available on the ASX with international exposure. This is great news for investors, with the Australian share market making up just 3% of global markets, investors can easily access the other 97% through purchase of an ETF on the ASX. Investors in ETFs may have come across the terms Australian and Internationally domiciled (also known as cross-listed). There’s some subtle differences that the country an ETF is domiciled in brings. Below we’ve taken a look ... [More]

Returns from shares in emerging markets have been weak since the global financial crisis; the iShares MSCI Emerging Markets ETF (ASX: IEM) has a 5-year average annual return of 1.1%, and 1.48% over 10 years. As the ETF does not use currency hedging, Australian investors are exposed to movements in the underlying currencies. This means the weak Australian dollar has cushioned investors from some of the poor performance – by comparison, the USD version of the same ETF has had an average annual return of -4.71% for the last 5 years. Much like the Australian market, emerging markets have been hurt by soft commodity prices and a slowdown in China. The following chart shows how closely the ETF of emerging markets has tracked with the S&P/ASX 200 (Index:^AXJO) (ASX:XJO), with both underperforming the iShares Core S&P 500 ETF (ASX: IVV) considerably. [More]

How to invest in emerging markets

Financial Review - Jan 29, 2016

Investors typically use specialist managed funds for emerging markets exposure, but a growing number of exchange traded funds and listed investment companies also provide exposure, and online brokers are making it easier to buy offshore shares directly. Here are four strategies to consider. [More]

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