When it comes to long-term investing, simplicity, diversification, and cost efficiency are key. The iShares Core S&P 500 ETF (ASX: IVV) checks all three boxes. It offers exposure to some of the world’s most influential companies with a single, low-cost investment.
Here’s why it deserves a spot in your portfolio.
1. Broad Exposure to the U.S. Market
IVV tracks the S&P 500 Index, giving you ownership in 500 of America’s largest publicly listed companies. In a single ETF, you gain access to names such as Apple, Microsoft, Amazon, and Johnson & Johnson.
This level of diversification reduces the risk of any single stock dragging down your returns and provides steady participation in the long-term growth of the U.S. economy.
2. Proven Long-Term Performance
Over the past several decades, the S&P 500 has consistently outperformed most active fund managers. By tracking the index, IVV has delivered strong, inflation-beating returns over time. Historical data shows that patient investors who stay invested through market ups and downs tend to benefit most from compounding growth.
While short-term volatility is inevitable, IVV’s long-term track record reinforces why many investors use it as a cornerstone of their portfolios.
3. Low Fees That Compound in Your Favour
Costs matter, especially over decades. IVV boasts one of the lowest management expense ratios (MERs) in the market, currently around 0.04% p.a. Every dollar saved on fees is a dollar that stays invested and compounds over time. Compared with actively managed funds charging 1% or more, the difference in long-term returns can be substantial.
4. Simple, Transparent, and Liquid
Unlike complex investment products, IVV is straightforward. You can see exactly what companies and sectors you’re invested in at any time. It trades like a stock, meaning you can buy and sell during market hours with ease and transparency. This liquidity provides flexibility without sacrificing long-term focus.
5. Ideal for Dollar-Cost Averaging
Because IVV represents a broad market index, it’s a strong candidate for dollar-cost averaging (investing a fixed amount regularly regardless of market conditions). This strategy helps smooth out volatility, reduce emotional decision-making, and build wealth steadily over time.
6. A Core Building Block for Diversification
IVV can serve as the “core” of your portfolio. From there, you can add other ETFs or asset classes (such as international equities, bonds, or real estate) to diversify further. Many investors use IVV as their foundation because it provides exposure to companies that make up a significant portion of global market capitalization.
7. Trusted by Investors Worldwide
Managed by BlackRock (the world’s largest asset manager), IVV benefits from institutional-grade oversight and robust risk management. Its massive size and liquidity make it one of the most trusted ETFs globally.