IVV US
IVV ETF: How iShares Core S&P 500 ETF Works
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The IVV ETF (ASX:IVV), officially the iShares S&P 500 ETF, gives investors exposure to 500 large-cap U.S. companies through the S&P 500 Index. For Australian investors, the key question is not just what the fund holds, but how best to access that exposure: directly through a locally listed Australian-domiciled ETF, via a hedged version, or through a broader U.S. market alternative.
What it does: Tracks the S&P 500 and gives broad exposure to large-cap U.S. equities.
Who it may suit: Australians wanting a simple, low-cost core U.S. equity allocation.
Main local issue for Australians: IVV is Australian-domiciled and ASX-listed, but remains unhedged to the Australian dollar.
Best Australian-listed alternative: IHVV for the hedged version, or VTS if you want broader U.S. total-market exposure.
Can Australians buy the IVV ETF?
Short answer: Yes, and more easily than the original U.S.-listed SPY route, because the Australian version is Australian-domiciled and ASX-listed.
Australian investors should check four things before buying IVV:
- Where it is listed: ASX
- Fund domicile: Australia
- Whether there is a hedged local equivalent: Yes, IHVV
- Whether the exposure is hedged or unhedged to AUD: Unhedged
The ASX:IVV is the local iShares S&P 500 ETF for Australian investors and that the fund was converted in the second half of 2018 into an Australian-domiciled iShares ETF. BlackRock says this change removed the need to complete U.S. tax forms known as W-8BEN forms.
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That makes IVV one of the cleanest ways for Australians to access the S&P 500 through the ASX. The trade-off is that IVV is not currency hedged, so your returns are still affected by movements in the Australian dollar against the U.S. dollar.
ETF at a glance
| ETF name | iShares S&P 500 ETF |
|---|---|
| Ticker | IVV |
| Issuer | BlackRock / iShares |
| Fund domicile | Australia |
| Primary exchange | ASX |
| Australian access route | Direct ASX-listed Australian-domiciled ETF |
| Underlying benchmark | S&P 500 Net TR Index (AUD) |
| Inception date | 15 May 2000 |
| Management fee | 0.04% p.a. |
| Fund size | A$12,543.70 million |
| Number of holdings | 500 underlying U.S. companies via the underlying fund |
| Base / listing currency | AUD |
| Currency exposure for Australians | Unhedged U.S. dollar exposure |
| Distribution frequency | Quarterly |
| Yield metric used | 12m trailing yield: 1.09% |
| PDS available? | Yes |
| TMD available? | Yes |
| Best local alternative | IHVV (AUD-hedged) |
What does the ETF actually do?
IVV aims to provide investors with the performance of the S&P 500 Index, before fees and expenses. That means you are effectively buying exposure to the top 500 large-cap U.S. listed companies in one trade.
For Australians, that matters because the local sharemarket is heavily concentrated in banks and miners. IVV gives you access to a very different mix of businesses; especially in technology, communication services, consumer sectors and health care, and can therefore play a useful diversification role in a portfolio built around Australian equities.
It is important to be clear on what IVV is not. It is not a total-U.S.-market ETF, not a hedged U.S. equities ETF, and not a global shares fund. It is a straightforward, low-cost S&P 500 building block.
Overview
The iShares Core S&P 500 ETF (IVV) offers Australian investors a way to research broad exposure to large US companies through a single US-listed ETF. Its portfolio spans many industries, but the largest companies and technology sector have a notable influence. The supplied data shows a 0.03% net expense ratio and quarterly distributions; returns and distributions can vary, and the fund’s USD exposure adds a currency dimension for Australian-dollar investors.
Category
IVV provides broad exposure to large US companies across a range of industries. The portfolio’s character is shaped by its sizeable technology allocation and major positions in companies such as NVIDIA, Apple and Microsoft, alongside businesses in consumer, communications, financial and healthcare sectors.
The portfolio’s mix spans technology, financial services, communication services, healthcare and consumer businesses, while remaining heavily centred on North America. Its large technology weighting and prominent mega-cap holdings mean the fund’s performance can be influenced strongly by a relatively small group of major companies, even though it holds hundreds of stocks.
Key facts
- Ticker
- IVV
- Exchange
- US
- ISIN
- US4642872000
- Category / focus
- US Equity
- Provider
- iShares
- Domicile
- United States
- Currency
- USD
- Inception date
- 2000-05-15
- Use of income
- Quarterly
- UCITS
- No
- Holdings count
- 504
Costs
- TER
- 0.03%
- Net expense ratio
- 0.03%
- AUM
- 882.8B
The supplied net expense ratio is 0.03%. This is the fund-level expense measure provided; brokerage, currency conversion and other investor-specific costs may apply separately.
Performance
- YTD
- 12.7%
- 1 year
- 12.8%
- 3 years
- 22.0%
- 5 years
- 11.9%
- 10 years
- 14.8%
- Dividend yield
- 1.10%
- Top 10 concentration
- 37.2%
Holdings
-
Apple Inc.7.60%
-
NVIDIA Corporation6.28%
-
-
Amazon.com Inc4.19%
-
Alphabet Inc Class A2.50%
-
Broadcom Inc2.45%
-
Meta Platforms Inc.2.26%
-
Alphabet Inc Class C2.13%
-
-
Berkshire Hathaway Inc1.67%
Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.
The portfolio contains 504 holdings, but its largest positions carry meaningful weight: the top 10 account for 39.205% of assets. NVIDIA is the largest position at 8.537%, followed by Apple at 6.873% and Microsoft at 5.933%. Technology is the largest sector, at 41.073%, so the broad company count does not remove the influence of the biggest holdings and sector.
Regions
-
North America98.2%
-
Europe Developed0.3%
-
Asia Emerging0.1%
-
Latin America0.0%
-
United Kingdom0.0%
-
Japan0.0%
-
Australasia0.0%
-
Asia Developed0.0%
-
Europe Emerging0.0%
-
Africa/Middle East0.0%
Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.
Asset allocation
-
Stock US98.0%
-
Stock non-US0.5%
-
Cash0.1%
-
Bond0.0%
-
Other0.0%
-
NotClassified0.0%
Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.
Sectors
-
Technology35.3%
-
Financial Services12.7%
-
Healthcare10.7%
-
Consumer Cyclicals9.6%
-
Communication Services8.5%
-
Industrials7.9%
-
Consumer Defensive5.1%
-
Energy3.4%
-
Utilities2.2%
-
Real Estate1.8%
Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.
Risks
Who it may suit
IVV may be of interest to investors researching broad exposure to large US companies through a single ETF. Australian investors may also want to consider the fund’s US concentration, USD currency exposure and how it fits alongside their other investments. This is general information, not personal financial advice.
Key risks
IVV is exposed to movements in US share prices, and its North American concentration offers limited geographic diversification. The largest holdings and technology sector represent substantial portions of the portfolio, so weakness among major companies or in that sector may weigh on returns. For Australian investors, USD exposure can also cause returns in Australian dollars to differ from returns in USD. Equity values can fall, and past performance does not guarantee future results.
FAQ
What does IVV invest in?
IVV holds a broad portfolio of large US companies across sectors. Technology has the largest sector weighting in the supplied portfolio data, and the largest individual positions include NVIDIA, Apple and Microsoft.
How much does IVV cost?
The supplied net expense ratio is 0.03%. Other costs, such as brokerage, currency conversion or tax, may also apply depending on an investor’s circumstances and platform.
Does IVV pay distributions?
The supplied data describes distributions as quarterly and shows a dividend yield of 1.106%. Distributions and yield can change, and the yield is not a guaranteed return.
What are the main risks of IVV for Australian investors?
The fund is concentrated in US equities, with substantial exposure to its largest companies and to technology. Its USD-denominated investments also mean returns measured in Australian dollars can be affected by exchange-rate movements.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
