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Low fee championUS focusedPassive

IVV Review

iShares S&P 500 ETF — the benchmark US market fund in Australia. We break down the fees, holdings, currency dynamics, and whether it belongs in your portfolio.

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4.5/ 5
ETF Review rating
IVVHigh risk
iShares S&P 500 ETF — BlackRock
MER
0.03%
1YR RETURN
+21.4%
3YR P.A.
+16.8%
AUM
~$13.1B
ProvideriShares (BlackRock)
DistributionSemi-annual
Risk level6/7 — High
Inception (AU)2007
CurrencyUnhedged
OVERVIEW

What is IVV?

IVV gives you ownership in 500 of America's largest companies in a single trade. Apple, Microsoft, NVIDIA, Amazon, Meta — they're all in here. At 0.03% MER it's one of the cheapest ways to access the US market from Australia.

The S&P 500 is the world's most widely followed equity index — a market-cap weighted collection of the 500 largest US-listed companies. IVV passively tracks this index, holding the same stocks in the same proportions. No active manager. No stock picking. Just the market.

iShares — BlackRock's ETF brand — has been running IVV in Australia since 2007. That's 17+ years of live track record through the GFC, the COVID crash, and multiple market cycles. At $13.1B in AUM it's one of the largest and most liquid ETFs on the ASX.

PORTFOLIO BREAKDOWN

Top 10 holdings

Approximate index weights for the 10 largest positions:

Apple Inc.7.2%
Microsoft Corp.6.8%
NVIDIA Corp.6.1%
Amazon.com Inc.3.8%
Meta Platforms Inc.2.6%
Alphabet Inc. (Class A)2.2%
Alphabet Inc. (Class C)1.9%
Berkshire Hathaway Inc.1.7%
Broadcom Inc.1.6%
Tesla Inc.1.5%
INDEX CHARACTERISTICS
Index trackedS&P 500
Holdings count500 companies
Weighting methodMarket cap
Country exposureUnited States only
Sector coverageAll 11 GICS sectors
Top 10 weight~35% of fund
RebalancingQuarterly by S&P
CurrencyUnhedged USD/AUD
HONEST ASSESSMENT

Pros & cons of IVV

STRENGTHS
✓
Lowest MER in its class (0.03%)
At just 0.03%, IVV is one of the cheapest ETFs available to Australian investors. Fees compound in reverse — lower costs mean more of your money stays working.
✓
500-company diversification
Ownership spread across 500 of America's largest companies across every sector — technology, healthcare, financials, consumer, energy, and more.
✓
17-year Australian track record
Launched in Australia in 2007, IVV has navigated the GFC, COVID crash, and multiple market cycles. A compelling real-world performance history.
✓
Exceptional liquidity ($13.1B AUM)
As one of Australia's largest ETFs, IVV trades with tight spreads and deep liquidity — you can buy or sell large amounts without moving the price.
✓
Strong long-term returns
Driven by the compounding growth of US mega-cap technology and consumer companies, IVV has delivered strong returns over the long run.
WATCH-OUTS
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100% US concentration risk
IVV gives you zero exposure to Australian, European, Asian, or emerging market companies. If the US underperforms globally, IVV feels the full impact.
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Unhedged AUD/USD currency exposure
When the AUD strengthens against the USD, your returns shrink in AUD terms — even if US markets rise. Currency can add meaningful short-term volatility.
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No Australian companies
Investors wanting Australian exposure for franking credits need to complement IVV with a dedicated ASX ETF like VAS.
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Semi-annual distributions only
Distributions are paid twice per year (typically June and December), which may not suit income-focused investors who prefer quarterly cash flows.
CURRENCY RISK EXPLAINED

The AUD/USD question

IVV is unhedged — your returns in AUD move with the AUD/USD exchange rate. When the Australian dollar strengthens against the USD, your IVV returns shrink. When the AUD weakens, your returns get a boost.

For long-term investors holding over many years, this currency noise tends to even out. Compare with IHVV (the hedged version) if currency stability matters more to you than the lowest possible fee.

IVV — Unhedged
Currency moves affect returns. Lower MER. Better for long-term investors who accept AUD/USD exposure. Historically stronger during periods of AUD weakness.
IHVV — Hedged
Currency risk removed. Slightly higher MER due to hedging costs. Returns closely mirror US market performance in AUD, without exchange rate noise.
QUICK COMPARISON

IVV vs VGS

THIS ETF
IVV
iShares S&P 500 ETF
MER
0.03%
EXPOSURE
US only — 500 companies

Lower fee, higher US concentration. Historically stronger returns driven by US market outperformance.

VGS
Vanguard MSCI Int'l ETF
MER
0.18%
EXPOSURE
Global developed — ~1,500 cos.

Broader diversification across 23 developed markets. US still ~70% of fund.

Bottom line: IVV is cheaper and has historically delivered stronger returns. VGS offers broader global diversification at a higher fee. Many Australian investors hold both as complementary positions.
THE VERDICT

Our take on IVV

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4.5/ 5

"IVV is the benchmark S&P 500 ETF in Australia. At 0.03% it's almost free to run. The concentration in US equities is a feature for some investors and a risk for others — but there's no arguing with the 17-year track record. If you believe in American companies long term, IVV is the cleanest way to own them."

COMMON QUESTIONS

IVV FAQs

The questions we get asked most — answered in plain English.

IMPORTANT DISCLAIMER

General information only. Not financial advice. All return data is approximate and past performance is not a reliable indicator of future returns. Holdings and weightings are subject to change. Before investing, consider your personal circumstances and seek advice from a licensed financial adviser. ETF Review is independent and has no affiliation with iShares, BlackRock, or any fund manager.