IOO ETF Australia: iShares Global 100 ETF Guide
IOO is the iShares Global 100 ETF: 100 of the world's biggest companies. What it holds, its 0.40% fee, the tech concentration, and how it compares to VGS.
By Timothy Hirou GaschereauPublished 12 min read
Try it yourself
IOO is the ASX ticker for the iShares S&P Global 100 ETF, managed by BlackRock, and the pitch is simple: 100 of the world's biggest multinational companies (Apple, Microsoft, Nvidia, Amazon, Alphabet) in a single AUD-listed trade. No currency conversion, no overseas broker, no W-8BEN.
It is one of the oldest ETFs on the ASX (listed 2000) and holds around $5.8 billion. But "global" and "diversified" are not the same thing, and that distinction is the whole story with IOO. New to ETFs? Start with what is an ETF.
🎯 The essential: IOO holds 100 of the world's largest companies via the S&P Global 100 Index: US-heavy (65 to 70%) and tech-heavy (information technology is about 45% of the fund). Two things to weigh. The fee is 0.40% p.a., more than double VGS (0.18%). And it is concentrated: the top 10 holdings are roughly 58% of the fund, versus about 22% for VGS. It is Australian-domiciled (no W-8BEN), unhedged, and pays semi-annual distributions with no franking. IOO suits a deliberate mega-cap tilt, not broad diversification, for which VGS or BGBL are cheaper and wider.
What is IOO?
IOO tracks the S&P Global 100 Index, a deliberately concentrated basket of exactly 100 large multinationals with operations across many countries. The US dominates at roughly 65 to 70%, reflecting the sheer size of US-listed companies. The fund launched in December 2000 and was restructured from US-domiciled to Australian-domiciled in September 2018, which removed the need for W-8BEN forms and US estate-tax exposure. It is unhedged and AUD-denominated, so you get global mega-cap exposure in one trade on the ASX.
What does IOO hold?
As at 2026 the top holdings were Nvidia (about 12%), Apple (11%), Microsoft (8%), Amazon (7%) and Alphabet (across two share classes, roughly 9% combined), with Broadcom, JPMorgan, Eli Lilly and Samsung rounding out the top names. By sector, information technology is nearly half the fund (about 45%), followed by financials, communication services and health care. Buying IOO is, in large part, a bet on the continued dominance of global tech mega-caps. That is not inherently bad, but it is worth naming clearly.
Global does not mean diversified
Here is the single most important chart for anyone considering IOO:
VGS holds around 1,270 companies across 23 developed markets; IOO holds 100. That is not a small difference. "Global" tells you where the companies operate, not how spread out your risk is. IOO is a concentrated bet dressed in a diversified-sounding label.
The fee: what 0.40% costs
IOO's MER is 0.40% p.a. That is expensive by modern ETF standards for an index fund:
| Portfolio | IOO (0.40%) | VGS (0.18%) | BGBL (0.08%) |
|---|---|---|---|
| $10,000 | $40 | $18 | $8 |
| $50,000 | $200 | $90 | $40 |
| $100,000 | $400 | $180 | $80 |
| $250,000 | $1,000 | $450 | $200 |
On $100,000 that is $400 a year versus $180 for VGS, a $220 gap that compounds over decades. Fees are money that is not growing, and here you are paying a premium for less diversification, not more.
IOO vs VGS: the comparison that matters
| Feature | IOO | VGS |
|---|---|---|
| Index | S&P Global 100 | MSCI World ex-Australia |
| Holdings | ~100 | ~1,270 |
| MER | 0.40% | 0.18% |
| Top 10 weight | ~58% | ~22% |
| US weighting | ~65-70% | ~70% |
| Currency | Unhedged AUD | Unhedged AUD |
| Best for | Mega-cap tilt | Broad global core |
For most Australians wanting broad global exposure, VGS (or BGBL at 0.08%) offers more diversification at a lower cost. IOO makes sense only if you specifically want concentrated mega-cap exposure and accept the higher fee and concentration. And watch for overlap: if you already hold VGS, DHHF or VDHG, you already own most of IOO's top holdings, so adding IOO just increases your concentration in the same names. Compare the field in our best ETFs guide.
Currency and tax
IOO is unhedged, so a falling Australian dollar lifts its AUD value and a rising dollar drags on it (see our hedged vs unhedged guide). It pays distributions twice a year, and because the underlying companies are foreign, those distributions carry no franking credits, though you may get a Foreign Income Tax Offset on some of the foreign income. Because IOO is Australian-domiciled, there is no W-8BEN form and no US estate-tax exposure. Selling units held 12 months or more qualifies for the 50% CGT discount for individuals. Declare distributions from the annual BlackRock tax statement, not just the cash amount, because it includes foreign-income and FITO components.
How to buy IOO
IOO trades on the ASX under the ticker IOO through any standard broker (Pearler, Stake, SelfWealth, CommSec). The minimum is one unit (around $197 as at 2026), there is no minimum holding period, and a DRP is available if you want distributions reinvested automatically. Before buying, be honest about why: IOO is heavily weighted to technology, so it falls hard in tech corrections. If that volatility would push you to sell, or if you just want a broad cheap global core, VGS or an all-in-one fund like DHHF is a better fit.
Frequently asked questions
What does IOO invest in?
+
IOO invests in 100 of the world's largest multinational companies, tracking the S&P Global 100 Index. It is heavily weighted to US-listed companies (roughly 65 to 70% of the fund), with information technology the dominant sector at about 45%. Top holdings include Nvidia, Apple, Microsoft, Amazon and Alphabet.
What is IOO's fee?
+
IOO's management fee (MER) is 0.40% per annum, or $400 a year on a $100,000 portfolio. For comparison VGS charges 0.18% ($180) and BGBL charges 0.08% ($80) on the same balance. You are paying a premium for a narrower, more concentrated portfolio.
Is IOO better than VGS?
+
Neither is objectively better; they do different jobs. VGS tracks the MSCI World index of roughly 1,270 companies across 23 developed markets; IOO holds just 100 mega-caps with much higher concentration. VGS is cheaper (0.18% vs 0.40%) and far more diversified. For most investors wanting broad global exposure, VGS is the more cost-effective core.
Does IOO pay franking credits?
+
No. IOO's underlying companies are predominantly foreign, so distributions carry no Australian franking credits. You may be eligible for a Foreign Income Tax Offset (FITO) on some of the foreign income, which reduces double taxation. Check the annual tax statement from BlackRock for the specific amounts.
Is IOO hedged to the Australian dollar?
+
No, IOO is unhedged. Its AUD value moves with both the underlying share prices and the AUD/USD exchange rate: when the AUD falls, IOO's AUD value tends to rise, and vice versa. This is the same approach as VGS and most international ETFs on the ASX.
Do I need a W-8BEN form for IOO?
+
No. IOO was restructured to an Australian-domiciled fund in September 2018, which removed the need for US tax paperwork. You do not need a W-8BEN form, and you avoid US estate-tax exposure, unlike some US-domiciled ETFs.
What is the minimum investment for IOO?
+
One unit. As at 2026, IOO units trade at roughly $197 each (prices change daily), and there is no minimum holding period. Standard brokerage applies per trade, and a distribution reinvestment plan (DRP) is available through most brokers.
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Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
- BlackRock, iShares IOO product page
- ASIC Moneysmart, exchange traded funds (ETFs)
- ATO, foreign income tax offset
- ATO, CGT discount
General information only, not personal financial advice. It does not take your circumstances into account. Holdings, fees and fund details change over time, so verify current figures with the BlackRock fact sheet before investing. Past performance is not a reliable indicator of future performance.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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