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Expressing a global mega cap view via ETFs
iShares S&P Global 100. IRESS code: IOO.AXW
Russ continues to overweight large, quality mega-caps in the equity space. Current equity prices already seem to be reflecting a significant amount of pessimism. As of September 5, IOO was trading on a P/E of 10.8 and a dividend yield of 3.6%.*
Key points about IOO:
- designed to deliver the performance of 100 transnational mega caps
- diversify equity portfolios with 107 securities from 10 countries
- largest holdings - Exxon Mobil, Nestle, INTL, Chevron, GE and Microsoft
- management cost 0.40%
- provides unhedged global mega cap exposure
- holds physical securities, not derivatives or synthetics
- currently has over $860 million in assets
Expressing a US large cap view via ETFs
The iShares S&P 500. IRESS code: IVV.AXW
While there are no shortages of headwinds for US markets however, recent valuations are historically extreme. As of September 5, IVV was trading on a P/E of 13.71 and a dividend yield of 2.21%.*
Key points about IVV:
- designed to deliver the performance of 500 of the largest companies listed on the NYSE
- approx 40% of IVV is comprised of 3 sectors not heavily represented on the ASX: IT (19%), healthcare (12%) and consumer discretionary (11%)
- above sector weightings can help to diversify away from a domestic sector overweights in banks and resources
- includes global brands such as Johnson&Johnson, General Electric CO, Microsoft Corp and Procter&Gamble CO can be accessed via one ASX trade
- management cost 0.09%
- provides unhedged US large cap exposure
- holds physical securities, not derivatives or synthetics
- currently has over $24 billion in assets
Your opinion matters most to us. Tell us what you’d like to see covered in iShares Trading Ideas.
If you have any questions please don't hesitate to contact the iShares team on 1300 474 2737.
Regards,
Tim Sparks
National Broking Strategy & ETF Research
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Russ Koesterich,
CFA, iShares Global
Chief Investment
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*Source: Bloomberg
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