iShares VII plc Core MSCI Japan IMI UCITS ETF Acc
Why is this fund on our radar?
Exchange traded funds (ETFs) have become a popular starting point for many investors because they offer a simple, low-cost way to access broad markets. An ETF is essentially a basket of investments, usually shares or bonds, that aims to track the performance of a specific index, such as the FTSE All-Share in the UK or the S&P 500 in the US.
Although we believe high-quality active managers can add value over the long term, we also recognise that many investors want simple and transparent building blocks in their portfolios. With this in mind, we reviewed the large universe of ETFs with the aim of selecting options that provide clean, representative exposure to their markets at a low ongoing cost.
Japan is the fourth-largest economy in the world and its stock market is home to many globally significant companies in key sectors such as robotics, autos and advanced manufacturing. The iShares Core MSCI Japan IMI ETF provides broad access to the Japanese equity market, covering large, mid and small-cap companies.
We selected this ETF because BlackRock, the world’s largest asset manager, brings extensive expertise and resources to managing passive strategies, ensuring efficient index tracking.
Portfolio
The ETF is large and liquid, making it easy to buy and sell, and uses a full replication approach, meaning it holds all the underlying companies in the index in the same proportions, providing investors exposure to a wide cross-section of Japanese businesses, helping to spread risk and capture growth across the market. The ETF closely mirrors the performance of the Japanese market and its ongoing charge of 0.12% is competitive given the breadth of coverage. Overall, the fund’s simple, transparent structure makes it a practical choice for investors looking for accessible, diversified exposure to Japan.
