The iShares Global 100 AUD ETF (ASX: IOO) puts some of the world's biggest multinational businesses into a single ASX investment.
That includes companies leading areas such as artificial intelligence, cloud computing, financial services, healthcare, and consumer technology.
With so many established global names under one roof, is the IOO ETF a good buy today?
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A portfolio of global leaders
The IOO ETF tracks the S&P Global 100 Index, giving investors exposure to 100 major multinational companies from around the world.
I like the focus on businesses that have already built significant global operations.
Major holdings include Nvidia, Apple, Microsoft, Amazon, Alphabet, and JPMorgan.
These companies give the fund exposure to areas including artificial intelligence, cloud computing, digital advertising, ecommerce, financial services, and consumer technology.
There are also businesses outside the technology sector, which gives investors exposure to other parts of the global economy.
For me, one of the advantages is that I do not need to decide which individual global giant will deliver the strongest returns over the next decade. The ETF gives me exposure to a collection of them through a simple ASX investment.
Concentration comes with trade-offs
The IOO ETF is more concentrated than some broad global ETFs.
With around 100 holdings, individual companies can have a greater influence on performance. Its largest positions also account for a meaningful proportion of the portfolio.
I do not necessarily see that as a negative. If I were buying this fund, I would be doing so because I specifically wanted greater exposure to some of the world's biggest and most established businesses.
But investors should understand that the fund may behave differently from an ETF holding more than 1,000 stocks.
If several of its largest holdings struggle at the same time, performance could suffer.
Why I would buy
What I like most about the IOO ETF is the quality of the businesses it allows me to own without needing to build the portfolio myself.
Many of its holdings have spent years establishing global customer bases, strong brands, valuable technology, or leading positions within their industries.
I think several of them could still be considerably larger businesses a decade from now.
That makes IOO ETF a fund I would be comfortable gradually adding to rather than trying to pick the perfect entry point.
Foolish takeaway
So, would I buy the IOO ETF now? Yes, I would.
I like the opportunity to own a focused collection of major global businesses through one ASX investment.
The portfolio is relatively concentrated, and some of its biggest holdings are not cheap, so I would expect plenty of volatility along the way.
But for an investor prepared to hold for years, I think the companies inside IOO give the ETF a strong long-term foundation.
