Buying iShares Exchange Traded Funds (ETFs)
iShares ETFs trade on the Australian Securities Exchange (ASX). Buying and selling iShares ETFs works in the same way as listed shares, as they can be:
- Bought and sold anytime during ASX trading hours through a broker, investment adviser or online trading platform.
- Same trading strategies associated with shares (market, limit and stop orders, for example).
- Pricing is daily, meaning you can view the price movements just as you would with shares.
- No minimum investment amount.
Invested – Once invested in an iShares ETF the registered purchaser will receive a Welcome Pack. Please note if your financial adviser or broker purchased on your behalf they may receive the Welcome Pack.
Managing – You can manage and access your investment holdings through the Investor Centre. Please see below for more details on the Investor Centre, for new investors view Investor centre - how to use easy update
Distributions – Most iShares ETFs pay distributions like normal shares. For existing holders distribution statements are available through the Investor Centre. Distribution history for all iShares ETFs can be viewed through the iShares website.
Computershare Investor Centre
Computershare maintains the iShares Investor Centre. The Investor Centre allows you to:
- review and update account details, including bank, tax and personal information
- view and manage your portfolio, including all holdings
- access your investment records and transaction history
- view dividends and payment information
- view tax information, including withholding tax
Computershare has a suite of short videos to help you with any queries you may have in using the Investor Centre, including:
- Investor centre - overview
- Investor centre - how to register
- Investor centre - the first time you login
- Investor centre - how to use easy update (for new investors)
Tax considerations for International iShares ETFs
Distributions paid by iShares international ETFs to a non US resident will generally be subject to US withholding tax (30%).
A reduced withholding tax rate may be entitled under a tax treaty which may exist between the US and the country in which you are subject to tax.
If you are an Australian resident for tax purposes, you may be eligible for a reduced withholding tax rate of 15%.
To receive the reduced tax rate the beneficial owner needs to complete a W-8BEN form:
Please note that the W-8BEN form is specific to one ETF. iShares has included additional instructions at the end of the W-8BEN form which allow you to apply that form to multiple iShares held under the same registration. The form may also be used where a W-8BEN form has been lodged for existing iShares holdings: the previously lodged form can be applied to the new holdings. In this scenario a new W-8BEN form does not need to be completed.
If you invested via a platform then please ensure that you understand its W-8BEN completion process.