iShares Core S&P 500 ETF (IVV)

What is IVV?

IVV is part of iShares' “Core” lineup of lower-cost, buy-and-hold-oriented ETFs managed by BlackRock. It seeks to track the S&P 500 index by holding its constituent companies, providing broad exposure to large US businesses across major sectors.

How IVV compares

IVV tracks the same S&P 500 index as VOO and SPY, but is issued by a different company under a different open-end fund structure than SPY's older unit investment trust structure. Differences between IVV, VOO and similar funds tend to come down to expense ratio, trading liquidity and issuer rather than the underlying index, which is identical across all three.

Risks and considerations

As a market-cap-weighted index fund, IVV's performance is influenced most by its largest holdings. It moves with the broader large-cap US stock market, including during periods of decline, and tracking an index provides no guarantee against loss.

Long-term investing considerations

IVV offers concentrated exposure to large US companies rather than the whole market. When building a long-term plan, consider how it fits alongside other asset classes, and test multiple return scenarios instead of assuming one fixed rate.