Is IVV a good ETF?
IVV is the iShares S&P 500 ETF from iShares. It tracks the S&P 500 Index. We classify it under US, Large-Cap, and Market-Cap. With about $14.27 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2007-10-29 (almost 19 years ago).
On a total-return basis, IVV has delivered 15.72% a year over 10 years (ranked 5th of 108 ETFs we track), 13.61% a year over 5 years (ranked 21st of 188 ETFs we track), 17.41% a year over 3 years (ranked 43rd of 226 ETFs we track), and 9.42% a year over 1 year (ranked 136th of 308 ETFs we track). Its strongest showing is over 10 years, where it sits in the top 5% of all ETFs we track.
The management fee of 0.04% 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, VTS (0.03%) cover similar ground for less. It pays a low 1.05% yield, so most of its return must come from capital growth.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 11.98%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 1.1 is strong — 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-5% returns over 10 years (5th of 108 ETFs we track).
- Low-cost: a 0.04% management fee keeps more of the return in your pocket.
- Strong risk-adjusted returns (10-year Sharpe ratio 1.1).
Things to watch
- Cheaper alternatives exist: VTS.
Good to know
- Low 1.05% yield — this is a growth-oriented fund, not an income play.
What IVV'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.