Is IHVV a good ETF?
IHVV is the iShares S&P 500 (AUD Hedged) ETF from iShares. It tracks the S&P 500 Index (AUD Hedged). We classify it under US, Large-Cap, and Market-Cap. With about $4.23 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2014-11-12 (almost 12 years ago).
On a total-return basis, IHVV has delivered 13.29% a year over 10 years (ranked 21st of 110 ETFs we track), 11.62% a year over 5 years (ranked 44th of 189 ETFs we track), 21.16% a year over 3 years (ranked 32nd of 236 ETFs we track), and 14.6% a year over 1 year (ranked 65th of 318 ETFs we track). Its strongest showing is over 3 years, where it sits in the top 14% of all ETFs we track.
The management fee of 0.1% is very low — typical of low-cost index funds. That's cheaper than the typical 0.32% for similar ETFs. If cost is your priority, IVV (0.04%) cover similar ground for less. It pays a healthy 4.03% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been elevated (annualised standard deviation around 15.42%), meaning noticeably larger swings than the broad market. Its 10-year Sharpe ratio of 0.74 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 3% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Top-14% returns over 3 years (32nd of 236 ETFs we track).
- Low-cost: a 0.1% management fee keeps more of the return in your pocket.
- Pays a useful 4.03% income yield.
Things to watch
- Cheaper alternatives exist: IVV.
What IHVV's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
US-listed companies — the world's deepest, most innovation-heavy market and home to the mega-cap tech names. Has led global returns for over a decade.
- Market regime
- Strong leadership has left valuations high and the index heavily concentrated in a handful of tech giants. Unhedged funds also rise and fall with the AUD/USD exchange rate.
- In a portfolio
- A legitimate core holding for global exposure, but be aware you are buying after a long run of outperformance and at elevated valuations.
The biggest, most established companies. More stable earnings, lower volatility and often steadier dividends than the broad market.
- Market regime
- Holds up comparatively well in downturns and uncertain markets; tends to lag small-caps and growth during the most aggressive bull runs.
- In a portfolio
- A dependable core building block suited to long-term holding.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.