Highlights

  • iShares Core MSCI Australia ESG ETF has a reported fund size of approximately A$559.83 million and a management fee of 0.09%.
  • Financial Services is the largest sector exposure at 29.92%, followed by Basic Materials at 23.75%.
  • The ETF holds 97 companies, with the ten largest positions accounting for 54.02% of the portfolio.
  • Commonwealth Bank is the largest holding at 12.62%, followed by Macquarie Group at 7.75%, Wesfarmers at 7.66% and CSL at 6.97%.

iShares Core MSCI Australia ESG ETF (ASX:IESG) is designed to track the MSCI Australia IMI Custom ESG Leaders Index. The fund generally uses a full-replication approach, seeking to hold securities in a way that closely reflects its benchmark while incorporating the index's environmental, social and governance methodology. IESG was admitted to the ASX on 4 June 2021 and is classified as an Equity Australia Large Blend fund.

Fund Size and Cost Structure

IESG has a reported fund size of A$559.83 million and approximately 18.29 million units outstanding.

The ETF carries a management fee of 0.09%, making fees a relatively small component of the fund structure compared with many actively managed or thematic equity ETFs.

Stocks represent 99.17% of reported assets, while cash accounts for 0.83%. There is no reported allocation to bonds or other asset classes.

The portfolio therefore remains essentially a fully invested Australian equity strategy, with ESG criteria influencing the securities represented in the underlying index.

Financials and Materials Lead Sector Exposure

Financial Services is the largest sector weighting at 29.92%.

Basic Materials follows at 23.75%, meaning these two sectors together account for more than half of the portfolio. Healthcare represents 11.11%, while Real Estate accounts for 10.95%.

Consumer Cyclical contributes 8.62%, Industrials 6.69% and Communication Services 3.56%. Technology represents 2.84%, Utilities 1.24% and Energy 0.88%.

The sector mix gives IESG exposure across several major parts of the Australian economy while retaining meaningful concentration in financial and resources-related companies.

Commonwealth Bank Is the Largest Holding

Commonwealth Bank of Australia is IESG's largest individual holding at 12.62%.

Macquarie Group is the second-largest position at 7.75%, followed closely by Wesfarmers at 7.66%. CSL represents 6.97%, while Goodman Group accounts for 4.68%.

Other major positions include Transurban Group at 3.79%, QBE Insurance Group at 2.82%, Northern Star Resources at 2.69%, Evolution Mining at 2.57% and Fortescue at 2.42%.

The ten largest holdings collectively represent 54.02% of the portfolio, leaving 45.98% allocated across the remaining companies.

Portfolio Holds 97 Companies

IESG holds 97 companies, giving the ETF broader company-level diversification than more narrowly focused sector or thematic funds.

The market-cap profile is heavily tilted toward larger companies. Businesses valued above A$1 billion account for 97.01% of the portfolio.

Companies valued between A$500 million and A$1 billion represent 2.93%, while companies below A$500 million contribute just 0.07%.

This structure is consistent with IESG's classification as an Australian large-blend equity fund.

Geographic Exposure Is Almost Entirely Australian

Australia represents 99.42% of the fund's geographic exposure.

The United Kingdom accounts for 0.51%, while the United States contributes 0.07%.

IESG is therefore overwhelmingly a domestic Australian equity product, despite limited exposure associated with companies or securities classified outside Australia.

Distribution, Trading and Risk Profile

The fund reported an annual yield of 2.59%.

IESG was quoted at A$30.57, with a bid-offer range of A$30.37 to A$33.00. Trading volume stood at 9,043 units compared with reported average volume of 42,264 units.

The ETF reported a beta of 0.89 and standard deviation of 10.07. These figures provide a snapshot of its reported market sensitivity and variability but do not determine future outcomes.

ESG Index Approach Shapes Portfolio Construction

IESG seeks to track the MSCI Australia IMI Custom ESG Leaders Index using a full-replication investment strategy.

Its ESG-oriented benchmark differentiates the fund from a conventional broad-market Australian equity ETF. Portfolio construction is therefore influenced not only by company size and index eligibility but also by the ESG methodology embedded in the benchmark.

The result is a diversified Australian equity portfolio with substantial exposure to Financial Services and Basic Materials while retaining holdings across Healthcare, Real Estate, Consumer Cyclical and other sectors.

Closing Perspective

iShares Core MSCI Australia ESG ETF combines broad Australian equity exposure with an ESG-focused index methodology. The fund holds 97 companies, although more than half of the portfolio is represented by its ten largest positions. Financial Services and Basic Materials dominate sector exposure, while Commonwealth Bank, Macquarie Group, Wesfarmers and CSL are among the largest individual holdings. With a reported fund size of A$559.83 million and a 0.09% management fee, IESG provides a broad large-cap Australian equity structure shaped by ESG screening.