The iShares Core S&P 500 ETF (ticker: IVV) is an exchange-traded fund (ETF) designed to track the performance of the S&P 500 Index, which includes 500 of the largest publicly traded companies in the United States. This index represents approximately 80% of the total market capitalization of U.S. public companies.
Key Features:
- Objective: To mirror the investment results of the S&P 500 Index, providing exposure to a diversified portfolio of large-cap U.S. equities.
- Expense Ratio: IVV offers a low management fee, enhancing its cost-effectiveness for investors.
- Dividend Yield: The ETF distributes dividends quarterly, reflecting the dividends paid by the underlying S&P 500 companies.
- Liquidity: As one of the largest ETFs tracking the S&P 500, IVV offers high liquidity, facilitating easy entry and exit for investors.
Performance:
As of January 3, 2025, the iShares Core S&P 500 ETF (IVV) is trading at $587.45, reflecting a slight decrease of 0.22% from the previous close.
Considerations for International Investors:
While IVV is primarily listed on U.S. exchanges, international investors, including those in India, can access it through global brokerage accounts that offer U.S. market access. It’s important to be aware of potential currency fluctuations, tax implications, and any additional fees associated with international investing.
Recent Developments:
In December 2024, Vanguard’s S&P 500 ETF (VOO) surpassed BlackRock’s iShares Core S&P 500 ETF (IVV) in assets under management, marking a significant shift in the ETF landscape. VOO’s assets reached $540.76 billion, slightly ahead of IVV’s $540.66 billion.
Conclusion:
The iShares Core S&P 500 ETF (IVV) offers investors a cost-effective and efficient means to gain exposure to the U.S. equity market, particularly large-cap stocks. Its low expense ratio, high liquidity, and alignment with the S&P 500 Index make it a popular choice for those seeking long-term growth through diversified U.S. equity investments.
Is iShares Core S&P 500 ETF Good?
The iShares Core S&P 500 ETF (IVV) is generally considered a good investment option for several reasons, especially for those seeking broad exposure to the U.S. stock market. Here are some of the key factors that make it attractive:
1. Diversification
- IVV tracks the S&P 500, which includes 500 of the largest publicly traded companies in the U.S. This gives investors exposure to a broad range of sectors, such as technology, healthcare, finance, and consumer goods. Diversification helps reduce risk compared to investing in individual stocks.
2. Low Expense Ratio
- One of IVV’s main advantages is its low expense ratio, which makes it a cost-effective option for long-term investors. As of 2025, IVV’s expense ratio is just 0.03%, meaning you pay only $0.30 for every $1,000 invested annually. This is significantly lower than many actively managed funds.
3. Strong Historical Performance
- The S&P 500 has historically been a reliable index for long-term growth. While past performance is not a guarantee of future results, the S&P 500 has historically outperformed many other investment options over long periods, making IVV an appealing choice for those seeking consistent growth.
Considerations:
- Market Exposure: While the S&P 500 is a well-diversified index, it’s still heavily weighted toward large-cap companies, particularly in technology. If you’re looking for more exposure to other segments, like small-cap stocks or international markets, you might need to diversify your portfolio further.
- Market Risk: Like all equity investments, IVV is subject to market risk, meaning its value can fluctuate with changes in the stock market, and it could experience periods of decline during market downturns.
Conclusion:
Overall, the iShares Core S&P 500 ETF is a strong option for long-term investors looking for low-cost, diversified exposure to the U.S. stock market. It’s well-suited for those who believe in the long-term growth potential of the S&P 500 and are comfortable with its inherent market risks. If you’re investing for retirement or another long-term goal, it can be a solid foundation for your portfolio.
What are the top 5 holdings of IVV?
As of January 2025, the top 5 holdings of the iShares Core S&P 500 ETF (IVV) are typically the largest companies in the S&P 500 Index. These companies are highly influential in the U.S. stock market and make up a significant portion of the ETF’s portfolio. Here are the top 5 holdings:
1. Apple Inc. (AAPL)
- Weight: Approximately 7.5% of the ETF
- Sector: Technology
- Description: Apple is one of the largest technology companies in the world, known for its consumer electronics, software, and digital services, including the iPhone, Mac computers, and iCloud.
2. Microsoft Corporation (MSFT)
- Weight: Approximately 6.4% of the ETF
- Sector: Technology
- Description: Microsoft is a global leader in software, cloud computing, and technology solutions. Its products include the Windows operating system, Office suite, and Azure cloud services.
3. NVIDIA Corporation (NVDA)
- Weight: Approximately 3.8% of the ETF
- Sector: Technology
- Description: NVIDIA is a leading designer of graphics processing units (GPUs) used in gaming, data centers, and artificial intelligence (AI) applications.
4. Alphabet Inc. (GOOGL) (Class A shares)
- Weight: Approximately 3.5% of the ETF
- Sector: Communication Services
- Description: Alphabet is the parent company of Google, which operates the world’s largest search engine and is also involved in various other technology areas, including advertising, cloud computing, and self-driving cars.
5. Amazon.com Inc. (AMZN)
- Weight: Approximately 3.2% of the ETF
- Sector: Consumer Discretionary
- Description: Amazon is a global leader in e-commerce, cloud computing (AWS), and digital streaming services. It is one of the largest companies by market capitalization in the world.
Summary of Sectors:
- Technology: Apple, Microsoft, NVIDIA
- Communication Services: Alphabet
- Consumer Discretionary: Amazon
These top holdings reflect the current market dominance of large tech companies. As a result, they often represent a significant portion of the overall value of the ETF. The allocation to these companies is subject to change as the companies’ stock prices fluctuate and as the S&P 500 Index is rebalanced.
Who owns iShares core s&p 500 ETF IVV?
The iShares Core S&P 500 ETF (IVV) is owned and managed by BlackRock, one of the largest global investment management firms. BlackRock is the parent company of iShares, which is the division responsible for managing a broad range of exchange-traded funds (ETFs), including IVV.
Key Information about BlackRock:
- BlackRock, Inc.: Founded in 1988, BlackRock is a global investment management corporation headquartered in New York City.
- Assets Under Management (AUM): BlackRock manages trillions of dollars in assets across various investment vehicles, including mutual funds, ETFs, and other types of investment products.
- Ownership of iShares: iShares, which includes IVV and many other ETFs, is a prominent brand within BlackRock’s investment offerings. BlackRock acquired iShares from Barclays in 2009.
As a result, the iShares Core S&P 500 ETF (IVV) is owned by BlackRock, and the management and operations of the fund are handled by BlackRock’s iShares division. BlackRock’s reputation as a leading investment management firm contributes to the credibility and stability of the IVV ETF.
What is the average rate of return on IVV?
Here’s a summary of the average annual rate of return for the iShares Core S&P 500 ETF (IVV) based on historical performance data. These figures reflect its performance over various time periods and are representative of the S&P 500’s long-term behavior.
Average Annual Returns for IVV
| Time Period | Average Annual Return | Notes |
| 1 Year | ~23.25% (2024) | Reflects recent strong performance due to market recovery and tech growth. |
| 3 Years | ~13-15% | Includes market volatility, pandemic recovery, and tech dominance. |
| 5 Years | ~11-13% | Captures growth from 2019 to 2024, including post-COVID-19 recovery. |
| 10 Years | ~11-13% | Long-term growth reflecting economic cycles and tech sector influence. |
| Since Inception | ~9-10% | Mirrors the historical average of the S&P 500, emphasizing long-term trends. |
Key Points
(1) Long-Term Growth:
- Over extended periods (10+ years), IVV delivers returns consistent with the historical performance of the S&P 500, which is around 10% annually on average.
(2) Recent Performance:
- Returns for shorter periods like 1 or 3 years may be higher or lower depending on economic conditions, such as the tech sector boom or market downturns.
(3) Dividends:
- IVV includes dividends paid by S&P 500 companies, which are reinvested or distributed to shareholders, enhancing total returns.
(4) Market Fluctuations:
- The average returns smooth out short-term volatility, which can significantly impact annual results.
Notes:
- Actual Returns: Returns may vary based on your investment date and whether dividends are reinvested.
- Expense Ratio Impact: With an expense ratio of only 0.03%, the impact of fees on returns is minimal.
- Risk Consideration: Returns are not guaranteed, and past performance doesn’t predict future outcomes.
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