iShares Global 100 ETF (IOO)

By Jason Fittler

With the current Greek debt default pushing the markets down in Europe and around the world, now is a good time for the long-term investor to start to build or add to positions in International Companies.

IOO is one of the best ways to do this. Note that this is a growth investment which will short-term be volatile. So, you do need a 5-year investment horizon.

Uncertainty in the financial market provides an opportunity for the value investor. At present, the top 100 companies worldwide are now cheaper than they were a week ago.

iShares Global 100 ETF (IOO, formerly iShares Global 100) is an exchange-traded fund seeking investment results that correspond to the price and yield performance of global large-cap stocks, as represented by the Standard & Poor's Global 100 Index (the Underlying Index). The fund is managed by BlackRock Fund Advisors.

The Fund seeks to achieve its objective by investing mainly in securities that comprise its relevant Underlying Index and through transactions that provide similar exposure to securities in the Underlying Index.

The Fund operates as an index fund and engages in representative sampling, which is investing in a sample of securities to have a collective Investment profile similar to that of the Funds Underlying Index.

For the Standard & Poor's Global 100 Index, it is designed to measure the performance of 100 large transnational companies that are of major importance in the global markets and have a minimum adjusted market capitalization of US$5 billion.

With the exception of the U.S, all companies are float adjusted and reconstitution is a continuous process.

As of 31 March 2014, the Index was comprised of stocks of companies in the United States, the United Kingdom, France, Germany, Switzerland, Japan, Spain, South Korea, the Netherlands, and Australia. 

For more information about iShares Global 100 ETF (IOO) please contact us on 07 4771 4577.