The benchmark index for the iShares MSCI Australia 200 ETF (ASX ticker: IOZ) has changed from the MSCI Australia 200 Index to the S&P/ASX 200 Index. As a result of this change the iShares ETF has been renamed the iShares S&P/ASX 200 ETF.
All other features of the iShares ETF – including fees and the ASX ticker – will remain the same, according to Mr Jon Howie, head of iShares Australia.
“The S&P/ASX 200 Index is widely considered to be the preeminent Australian equity benchmark. We are changing the benchmark index to better align the iShares ETF’s exposures to the benchmark index that is referred to by most investors and the market,” Mr Howie says.
Mr Howie said there are small but important differences in the two indices.
“The MSCI Australia 200 Index is designed to reflect the performance of largest 200 companies of the domestic Australia equity market, excluding foreign companies cross listed on the ASX.
In comparison, the S&P/ASX 200 Index generally comprises 200 of the largest securities by market capitalisation and liquidity including foreign companies cross listed on the ASX.”
“With the change, investors will move to an index that is more widely reported, with daily performance in the financial press, and index holdings being readily available.”
“Because it is the most tracked national index, most investor benchmarks tend to track the S&P/ASX 200 Index. This change will therefore result in better tracking to investors’ reference benchmark.”
“The change will involve only minor alterations to the iShares ETF’s portfolio, which will continue to provide exposure to the 200 largest Australian companies by market capitalisation.”
Following the change in benchmark index, the iShares S&P/ASX 200 ETF will provide the lowest cost ASX-listed access to the performance of the S&P/ASX 200 Index.
iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than US$1 trillion in assets under management as of 30 September 2015, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, Inc © (BlackRock), trusted to manage more money than any other investment firm.
 Based on US$4.506 trillion in AUM as of 9/30/15.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At 30 September 2015, BlackRock’s AUM was US$4.506 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of 30 September 2015, the firm had approximately 12,900 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia, the Middle East and Africa. For additional information, please visit the BlackRock’s website at www.blackrock.com.
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