iShares Core S&P 500 ETF Overview
iShares Core S&P 500 ETF (IVV) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). iShares launched the ETF in 2000.
The investment seeks to track the investment results of the S&P 500 composed of large-capitalization U.S. equities. The index measures the performance of the large-capitalization sector of the U.S. equity market, as determined by SPDJI. The fund generally will invest at least 80% of its assets in the component securities of its index and in investments that have economic characteristics that are substantially identical to the component securities of its index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
About iShares Core S&P 500 ETF (IVV)
There are 3 members of the management team with an average tenure of 10.48 years: Greg Savage (2008), Jennifer Hsui (2012) and Paul Whitehead (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: S&P 500 TR USD index with a weighting of 100%. iShares Core S&P 500 ETF has 509 securities in its portfolio. The top 10 holdings constitute 34.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
iShares Core S&P 500 ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. iShares Core S&P 500 ETF has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.1% There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares Core S&P 500 ETF has 0.3% of the portfolio in cash.
Assets Under Management
iShares Core S&P 500 ETF has a trailing dividend yield of 1.27%, which is above the 1.23% category average. The fund normally distributes its dividend income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
IVV Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Core S&P 500 ETF has a portfolio turnover rate of 3%, which indicates that it holds its assets around / 0.3 years. By way of comparison, the average portfolio turnover is 60% for the Large Blend category.
Recently, in the month of August 2024, iShares Core S&P 500 ETF returned 2.4%, which earned it a grade of C, as the Large Blend category had an average return of 2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
iShares Core S&P 500 ETF Grades
Year to date, the ETF has returned 19.5%, 2.6 percentage points better than the category, which translates into a grade of B. The fund has returned 27.1% over the past year (grade of B), 9.3% over the past three years (grade of B) and 15.9% per year over the past five years (grade of B) and 12.9% per year over the past 10 years (grade of B).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about iShares Core S&P 500 ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
