Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?

Core Viewpoint - The iShares Core S&P 500 ETF (IVV) is a leading option for investors seeking broad exposure to the Large Cap Blend segment of the US equity market, with assets exceeding $666.80 billion, making it the largest ETF in this category [1]. Group 1: Large Cap Blend Characteristics - Large cap companies typically have market capitalizations above $10 billion, characterized by stability and predictable cash flows, resulting in lower volatility compared to mid and small cap companies [2]. - Blend ETFs, like IVV, combine both growth and value stocks, showcasing qualities of both investment styles [2]. Group 2: Cost Structure - The annual operating expenses for IVV are 0.03%, positioning it as one of the least expensive ETFs in the market [3]. - The ETF has a 12-month trailing dividend yield of 1.22% [3]. Group 3: Sector Exposure and Holdings - IVV has a significant allocation to the Information Technology sector, comprising approximately 33.6% of the portfolio, followed by Financials and Consumer Discretionary [4]. - Nvidia Corp (NVDA) represents about 8.16% of total assets, with Microsoft Corp (MSFT) and Apple Inc (AAPL) also among the top holdings; the top 10 holdings account for around 38.51% of total assets [5]. Group 4: Performance Metrics - IVV aims to replicate the performance of the S&P 500 Index, having increased by about 11.65% year-to-date and approximately 20.41% over the past year as of September 10, 2025 [6]. - The ETF has traded between $498.80 and $653.62 in the past 52 weeks [6]. Group 5: Risk Assessment - With a beta of 1.00 and a standard deviation of 16.46% over the trailing three-year period, IVV is classified as a medium risk investment [7]. - The ETF holds around 508 different securities, effectively diversifying company-specific risk [7]. Group 6: Alternatives and Market Position - IVV holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected returns, low expense ratios, and positive momentum [8]. - Other ETFs tracking the same index include the SPDR S&P 500 ETF (SPY) with $658.03 billion in assets and the Vanguard S&P 500 ETF (VOO) with $740.20 billion; SPY has an expense ratio of 0.09% while VOO charges 0.03% [9][10]. Group 7: Investment Appeal - Passively managed ETFs like IVV are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].