IOZ is one of the most widely held Australian shares ETFs on the ASX. It gives exposure to the largest companies on the Australian market through a single low-cost trade, which is part of why it appears in so many portfolios.
IOZ is an ASX 200 ETF. It tracks the S&P/ASX 200, the index of the 200 largest companies listed on the ASX by market capitalisation. It is run by BlackRock under the iShares brand and charges a management expense ratio of 0.05% per year.
This article covers what IOZ holds, its fees, its dividend yield and distribution frequency, and how it compares to two other widely held Australian shares ETFs: STW and VAS. General information only, not financial advice.
At a glance
| IOZ | STW | VAS | |
|---|---|---|---|
| Full name | iShares Core S&P/ASX 200 ETF | SPDR S&P/ASX 200 Fund | Vanguard Australian Shares Index ETF |
| Provider | BlackRock (iShares) | State Street (SPDR) | Vanguard |
| Index tracked | S&P/ASX 200 | S&P/ASX 200 | S&P/ASX 300 |
| Annual fee | 0.05% p.a. | 0.05% p.a. | 0.07% p.a. |
| Fund size | $8.4B | $6.4B | $50.7B |
| Holdings | 204 | 204 | 316 |
| Dividend yield | 3.4% | 3.4% | 3.3% |
| Distribution frequency | Quarterly | Quarterly | Quarterly |
| Listed since | 2010 | 2001 | 2009 |
Dividend yield figures are trailing distribution yields. Past performance is not a reliable indicator of future performance. Fee and fund size data is reported from fund manager disclosures, reviewed quarterly.
What is IOZ?
IOZ is the iShares Core S&P/ASX 200 ETF, issued by BlackRock, the world's largest asset manager. It is a passive index fund that aims to track the performance of the S&P/ASX 200 before fees. The S&P/ASX 200 covers the 200 largest ASX-listed companies by market capitalisation, so IOZ holds those companies in roughly the same proportions as the index.
In plain terms, buying one parcel of IOZ spreads money across a broad slice of the Australian large-cap market in a single trade, rather than picking individual shares. The management expense ratio is 0.05% per year and IOZ currently holds around 204 positions.
What does IOZ hold?
Because IOZ tracks the S&P/ASX 200 by market capitalisation, the largest companies dominate the fund. The two heaviest sectors are financials (driven by the major banks) and materials (driven by the large miners), followed by healthcare, consumer and industrials. This is a well-known feature of broad Australian shares indices: the index is concentrated in a relatively small number of very large banks and miners.
The full live holdings and sector breakdown are on the IOZ page. Holdings are reported from fund manager disclosures, reviewed quarterly. Anyone holding IOZ alongside another Australian shares fund can use the ETF Overlap Checker to see how much of the underlying exposure is duplicated.
IOZ fees
IOZ charges a management expense ratio of 0.05% per year. On a $10,000 investment that works out to about $5/yr per $10,000. For comparison, STW charges 0.05% per year and VAS charges 0.07% per year. All three sit at the low-cost end of the Australian shares ETF market. Which fee level is appropriate depends on an individual investor's circumstances; this is general information only and not a recommendation.
IOZ dividend yield
IOZ passes through the dividends paid by its underlying ASX 200 companies. Its trailing distribution yield is approximately 3.4%. Distributions are paid quarterly.
For Australian resident taxpayers, IOZ distributions can include franking credits, because many large ASX companies (particularly the banks) pay franked dividends. Franking credits may reduce the tax payable on the distribution depending on an individual's tax position. The exact distribution amount and franking level vary each period and are not guaranteed.
Past performance is not a reliable indicator of future performance. General information only, not financial advice.
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IOZ and STW both track the S&P/ASX 200, so their underlying holdings are very similar. ETFLens calculates approximately 94% holdings overlap between them. The differences are not in what they hold but in who runs them and their scale: IOZ is issued by BlackRock (iShares) and STW by State Street (SPDR). STW was Australia's first ETF, listed in 2001, while IOZ listed in 2010.
| IOZ | STW | |
|---|---|---|
| Provider | BlackRock (iShares) | State Street (SPDR) |
| Index | S&P/ASX 200 | S&P/ASX 200 |
| Annual fee | 0.05% p.a. | 0.05% p.a. |
| Fund size | $8.4B | $6.4B |
| Holdings | 204 | 204 |
| Dividend yield | 3.4% | 3.4% |
| Overlap with each other | 94% (ETFLens estimate) | |
Yield figures are trailing distribution yields. Past performance is not a reliable indicator of future performance. The full side-by-side view is on the IOZ vs STW comparison.
IOZ vs VAS
The key difference between IOZ and VAS is the index. IOZ tracks the S&P/ASX 200 (the 200 largest ASX companies). VAS tracks the S&P/ASX 300, which adds roughly 100 more, smaller companies. Those extra companies are small by market capitalisation, so the practical exposure is close: ETFLens calculates approximately 98% holdings overlap between IOZ and VAS. The fee difference is 0.02% per year in IOZ's favour, and VAS is the larger fund by funds under management.
| IOZ | VAS | |
|---|---|---|
| Provider | BlackRock (iShares) | Vanguard |
| Index | S&P/ASX 200 | S&P/ASX 300 |
| Annual fee | 0.05% p.a. | 0.07% p.a. |
| Fund size | $8.4B | $50.7B |
| Holdings | 204 | 316 |
| Dividend yield | 3.4% | 3.3% |
| Overlap with each other | 98% (ETFLens estimate) | |
Yield figures are trailing distribution yields. Past performance is not a reliable indicator of future performance. The full breakdown is on the IOZ vs VAS comparison.
STW vs VAS
STW and VAS are both broad Australian shares ETFs, and the difference between them is again the index. STW tracks the S&P/ASX 200 and VAS tracks the S&P/ASX 300. ETFLens calculates approximately 93% holdings overlap between them, and the fee difference is 0.02% per year. More detail is on the STW and VAS pages, and in the related comparisons VAS vs A200 and VAS vs VGS.
Who typically holds IOZ?
IOZ is commonly held by investors who want a single, low-cost holding for the Australian large-cap part of a portfolio, and by those who prefer the iShares (BlackRock) brand. It is also used as the Australian shares component alongside an international shares ETF in a simple two-fund or three-fund structure. This is a descriptive observation of how the fund is used, not a recommendation.
Key things to be aware of
- Index difference: IOZ and STW track the ASX 200, while VAS tracks the ASX 300. The ASX 300 adds smaller companies that are minor by weight.
- Fees: IOZ at 0.05%, STW at 0.05% and VAS at 0.07% are all low by Australian standards, but they are not identical.
- Franking: distributions can include franking credits for Australian resident taxpayers, which affects after-tax outcomes differently for each person.
- Concentration: all three are concentrated in banks and miners because that is how the Australian market is structured.
- Overlap: holding IOZ together with STW or VAS means paying two fees for largely the same underlying companies. The ETF Overlap Checker shows the duplicated exposure.
See the live holdings overlap, sector exposure and fee difference in dollars.
Compare IOZ vs STW on ETFLens →General information only. Not financial advice. This article does not consider your personal financial situation, objectives or needs. Past performance is not a reliable indicator of future performance. Fee, fund size, yield and holdings data is reported from fund manager disclosures, reviewed quarterly. Always check the current PDS for the most recent fee and holdings information before investing. ETFLens does not hold an Australian Financial Services Licence. Always read the relevant PDS and consider seeking advice from a licensed financial adviser (AFS licence holder) before making any investment decisions.