IHVV ETF: How Ishares S&P 500 Aud Hedged ETF Works

Overview

IHVV offers Australian investors a route to US large-company shares with an AUD-hedged profile. Its reported portfolio is overwhelmingly invested through the iShares Core S&P 500 ETF, so the central considerations are exposure to US equities, the portfolio’s sector mix and how currency hedging affects the investment experience.

Category

IHVV combines exposure to large US companies with an Australian-dollar currency hedge. The structure may make the fund relevant to investors comparing hedged and unhedged approaches to US share-market exposure, while leaving the underlying equity-market risks in place.

Large US companies span a range of industries, though the supplied sector breakdown gives technology a substantial weight. For Australian investors, the currency hedge is a key part of IHVV’s profile: it aims to reduce the influence of AUD–USD movements on returns, but does not remove share-market risk or guarantee a particular currency outcome.

Key facts

Ticker

IHVV

Exchange

AU

ISIN

AU00000IHVV8

Provider

BlackRock Investment Management (Australia) Limite

Domicile

Australia

Currency

AUD

Inception date

2014-12-15

Use of income

Annually

UCITS

No

Holdings count

1

Costs

TER

0.09%

Ongoing charge

0.09%

Net expense ratio

0.09%

AUM

4.3B

The supplied ongoing charge is 0.09%. The displayed return figures are 11.734% year to date, 13.953% over one year, 20.506% over three years, 11.54% over five years and 12.826% over ten years. The supplied dividend yield is 4.2% and distributions are annual. Returns and yield can vary; historical performance is not a guide to future results.

Performance

YTD

11.7%

1 year

14.0%

3 years

20.5%

5 years

11.5%

10 years

12.8%

Dividend yield

4.20%

Top 10 concentration

99.5%

Holdings

1. iShares Core S&P 500 ETF99.50%

   Ticker

   IVV

   Sector

   Country

   United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The reported portfolio is highly concentrated in one holding: the iShares Core S&P 500 ETF accounts for 99.497%. Look-through sector data shows the largest reported allocation in technology at 40.136%, followed by financial services at 11.103% and healthcare at 9.203%.

Sectors

• Technology40.1%

• Financial Services11.1%

• Communication Services10.0%

• Healthcare9.2%

• Consumer Cyclicals8.5%

• Industrials7.3%

• Consumer Defensive4.3%

• Energy3.3%

• Utilities2.0%

• Real Estate1.7%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

Compared with the unhedged iShares S&P 500 ETF (IVV), IHVV’s defining distinction is its Australian-dollar-hedged exposure. The supplied holdings data lists IVV as IHVV’s dominant holding; the funds should not be assumed to have identical currency outcomes.

Risks

Who it may suit

IHVV may interest Australian investors seeking broad exposure to large US companies while aiming to reduce the effect of movements in the Australian dollar against the US dollar. Its concentrated exposure to US shares means it is not a diversified multi-asset fund.

Key risks

IHVV is exposed to fluctuations in US share prices, and its reported sector mix has a sizeable technology allocation. The portfolio’s near-total exposure to a single underlying fund also means the wrapper does not itself provide broad asset-class diversification. Currency hedging can reduce some exchange-rate effects, but it may not eliminate them and can affect returns differently as exchange rates move. Past returns and the displayed dividend yield do not guarantee future outcomes.

FAQ