Business · Markets · 1 hr ago

IVV ETF offers low-cost exposure to about 500 US companies

IVV ETF offers low-cost exposure to about 500 US companies

The iShares S&P 500 ETF, known as IVV, is listed on the Australian market and tracks the S&P 500 index.

That index includes about 500 of the largest companies listed in the United States.

The fund’s holdings include major technology companies such as NVIDIA, Microsoft, Broadcom, Alphabet and Meta Platforms, as well as businesses in other sectors.

The index can change over time as companies grow, decline or are replaced, so investors do not have to choose individual shares themselves.

IVV charges an annual management fee of 0.04%, equal to $4 for every $10,000 invested.

Its main risks include heavy exposure to the US market and large technology companies, as well as currency movements that can affect Australian investors.

The fund may suit people seeking long-term exposure to large US companies, but its returns could disappoint if those companies struggle or US shares lag other markets.

What people are saying

The IVV ETF tracks the S&P 500 Index, giving investors exposure to approximately 500 of the largest companies listed in the United States.
Motley Fool AU contributorArticle authorvia Motley Fool AU
The ETF charges just 0.04% annually.
Motley Fool AU contributorArticle authorvia Motley Fool AU
If these businesses struggle or US shares underperform other markets, returns could disappoint.
Motley Fool AU contributorArticle authorvia Motley Fool AU

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