EXV6
iShares STOXX Europe 600 Health Care UCITS ETF (DE)
Published by Radif Partners · Updated
Overview
iShares STOXX Europe 600 Health Care UCITS ETF (DE) (EXV6) tracks the STOXX Europe 600 Health Care index and holds its constituents directly, a physical replication managed by iShares. Dividends are paid out to holders rather than reinvested, so EXV6 suits investors seeking regular income. The fund is domiciled in DE, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.46% of assets, and the fund holds 520M under management. Over five years the fund returned 7.0% a year on average, against 14.4% over three years. It is not eligible for the French PEA, but can be held in a securities account, a UK ISA or a German Depot. Its risk level is rated medium. Launched on 2006-07-18, the fund is denominated in EUR and has 20 years of track record. It is a UCITS fund, so it follows the European framework on diversification, liquidity and asset segregation. Because EXV6 distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in DE sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
Ongoing charges of 0.46% place this fund 10th of 11 comparable funds, whose median is 0.40%. On £10,000 that costs about 46 a year and 460 over ten years at a constant amount, deducted daily and never visible on a statement: it shows up in the gap between the fund's return and its index's. At this level, neither low enough to be an argument nor high enough to be an obstacle, the decision rests elsewhere: on the index tracked, on the distribution policy, and on what your broker charges to buy.
Replication is physical: the fund actually holds the constituents of STOXX Europe 600 Health Care, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.46% headline. That is why two funds at the same price do not track their index with the same fidelity.
The fund is domiciled in DE, outside the two usual homes for European listed funds. Three checks come before buying: whether your broker lists it, since a fund outside the usual venues is not always dealable from a European account; what withholding the fund suffers on dividends it receives, which follows DE's treaties rather than your country's; and how your own tax authority treats it, an answer that can differ from the treatment of an Irish fund tracking the same index.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
With 520 million in assets and 20 years of history, this fund has the size and the record that make closure unlikely and the spread narrow. Three checks remain, once a year, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of STOXX Europe 600 Health Care, which can change its selection or weighting rules without the fund's name moving, in which case what you hold has changed with nothing to announce it.
STOXX Europe 600 Health Care is a sector index, and that is an explicit bet: the portfolio gives up diversification across sectors to take a position in one. Three consequences follow. Concentration first, often around twenty companies whose top three make up a notable share, so the outcome depends on identifiable firms. Internal correlation next, which defeats the idea of dampening risk within the sector. And timing last: a sector runs in long cycles, and entry rarely lands well when the purchase follows a strong rise already published.
Over one year the fund shows 35.2% against 7.0% annualised over five years: the recent year sits well above the long average. A gap in that direction mainly counsels care about the entry point, since what has risen sharply lately costs more today than a year ago, and the long average is the figure that best describes what to expect.
0.46%
520M
520M EURMedium
133
Physical
Distributing
EUR
DE
STOXX Europe 600 Health Care
iShares
2006-07-18 (20 years)
Contextual Analysis
Fund Size
With 520M in assets, this is a mid-sized fund, decent liquidity for most investors.
Fee Positioning
A TER of 0.46% is above the market average (~0.35%), justified if the strategy is specialized.
Track Record
Launched in 2006-07-18, this fund has 20 years of history, long and reliable track record.
Risk Profile
Medium risk, good risk/return balance for a 5+ year horizon.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | +2.5% |
| 3 Months (est.) | – | +7.8% |
| 6 Months (est.) | – | +16.3% |
| YTD (est.) | – | +13.4% |
| 1 Year | +35.2% | +35.2% |
| 3 Years | +14.4% | +49.6% |
| 5 Years | +7.0% | +40.1% |
| Since inception (20y) | +18.9% | +3065.7% |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
Select your country in the menu to see available brokers and wrappers.
About this ETF
The iShares STOXX Europe 600 Health Care UCITS ETF (DE) tracks the STOXX Europe 600 Health Care index. It is managed by iShares using physical replication and follows a distributing distribution policy. The fund is denominated in EUR and domiciled in DE. It has a total expense ratio (TER) of 0.46%.
Similar ETFs
Frequently asked questions
What do EXV6's 0.46% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £4.60 a year and roughly £46 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
What should you re-check on EXV6 once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of STOXX Europe 600 Health Care, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does EXV6 lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and iShares publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Does EXV6 pay dividends?
Yes: the fund distributes and pays out the dividends it receives, on a calendar set by iShares. The payment is taxable in the year you receive it in most accounts, even if reinvested at once, and reinvesting by hand costs a commission each time. An accumulating class on the same index avoids that friction for anyone who does not need the income.
How do you buy EXV6, and on which venue?
Through any broker that lists ISIN DE000A0Q4R36. The same strategy often exists in several share classes with different fees and distribution policies, and what counts is the class you buy rather than the one you read about: check the ISIN, not the name. A limit order avoids paying the spread of a thin order book, particularly outside the trading hours of the underlying markets.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.