IOZ

 ISHARES CORE S&P/ASX 200 ETF - IOZ

https://www.blackrock.com/au/products/251852/ishares-core-s-and-p-asx-200-etf

https://www.blackrock.com/au/individual/products/251852/fund/1478358644060.ajax?fileType=csv&fileName=IOZ_holdings&dataType=fund

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The iShares Core S&P/ASX 200 ETF (ASX: IOZ) is an exchange-traded fund managed by BlackRock. It aims to track the performance of the S&P/ASX 200 Accumulation Index, giving investors low-cost exposure to the 200 largest companies listed on the Australian Securities Exchange (ASX). [1, 2, 3]

Investment Aims & Strategy

Objective: Match the total return (price performance plus reinvested dividends) of the S&P/ASX 200 Accumulation Index before fees.
Passive Approach: Holds shares in the exact weight of each company in the index.
Core Holding: Designed as a simple, single-trade foundation for the Australian equities portion of a portfolio. [1, 2, 3]

Rules & Index Guidelines

Constituents: Tracks the 200 largest eligible Australian securities based on float-adjusted market capitalization. [1, 2, 3]
Rebalancing: The underlying index is rebalanced quarterly (such as March, June, September, and December) by S&P Dow Jones Indices to add or remove qualifying companies. [1, 2, 3]
Distributions: Pays regular income distributions derived from underlying company dividends, with optional Distribution Reinvestment Plans (DRP) available. [1, 2]

Key Characteristics

Management Fee: Low cost at 0.05% per annum.
Sector Concentration: Heavily weighted toward financials (major banks like CBA, NAB, WBC, ANZ) and materials/mining (such as BHP).
Market Risk: Directly exposed to systemic movements and downturns in the domestic Australian share market

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IOZ VS SYI

The SPDR MSCI Australia Select High Dividend Yield Fund (ASX:SYI) uses a rules-based strategy to target Australian companies with higher-than-average, persistent dividend yields and quality fundamental screens. It contrasts with the broad iShares Core S&P/ASX 200 ETF (ASX:IOZ), which passively tracks the entire top 200 market-cap index for general market growth and core portfolio exposure. [1, 2, 3, 4, 5]

Underlying Strategy of ASX:SYI

Benchmark: Tracks the custom MSCI Australia Select High Dividend Yield Index. [1, 2]
Screening Rules: Filters for companies that offer high sustainable dividend income while screening out potential "dividend traps" using fundamental metrics like earnings consistency and low leverage. [1, 2]
Portfolio Concentration: Results in a much smaller, heavily focused selection of local stocks (often around 30 to 70 holdings) rather than a whole-market representation. [1, 2]
Sector Skew: Heavily overweighted in the Financials (banking) sector to capture large recurring domestic payouts. [1, 2]

Comparison: SYI vs IOZ

Objective and Focus

SYI: Designed strictly for income maximization and high cash distribution yields, accepting higher sector concentration in exchange for cash flow. [1, 2]
IOZ: Designed as a broad, market-cap-weighted core holding to match total returns (capital growth plus income) of the broader Australian corporate landscape. [1, 2]

Holdings and Diversification

SYI: Concentrated basket containing only a fraction of the market; heavily tilted toward major banks and select high-yield payers.
IOZ: Broad exposure spanning 200 of the largest Australian businesses across mining, healthcare, retail, and finance. [1, 2, 3, 4, 5]

Fees

SYI: Higher management fee of 0.20% to 0.35% per year due to the specialized index screening methodology.
IOZ: Ultra-low management fee of 0.05% per year, reflective of a simple, passive market-cap index tracker. [1, 2, 3, 4, 5]

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