ETF Spotlight on iShares S&P 500 Index Fund (NYSEArca: IVV), part of an ongoing series.
Assets: $29.6 billion.
Objective: The iShares S&P 500 Index Fund tries to reflect the performance of U.S. large-cap stocks as represented by the S&P 500 Index.
Holdings: Apple (NasdaqGS: AAPL) 4.2%, Exxon Mobil (NYSE: XOM) 3.3%, Microsoft (NasdaqGS: MSFT) 1.9%, International Business Machines Corp. (NYSE: IBM) 1.9% and Chevron Corp. (NYSE: CVX) 1.8%.
What You Should Know:
- BlackRock‘s iShares ETF division sponsors the fund.
- IVV has an expense ratio of 0.09%.
- The fund holds 501 securities and the top ten holdings account for 20.3% of the overall portfolio.
- Sector allocations include: information technology 20.2%, financials 14.6%, energy 11.8%, health care 11.3%, consumer discretionary 10.9%, consumer staples 10.7%, industrials 10.7%, materials 3.5%, utilities 3.4%, telecommunication 2.7% and other 0.2%.
- The ETF has a 12-month yield of 1.9%.
- The fund is up 3.5% over the past month, up 13.5% over the past three months and up 9.2% over the last year.
- IVV is 8.7% above its 200-day exponential moving average.
- “It has had more than a 99% correlation with the broad U.S. market and a 90% correlation to developed international stocks,” according to Morningstar analyst Michael Rawson, CFA.
- “This fund tracks the S&P 500, a diversified large- and mid-cap stock index of U.S. companies with a slight quality tilt because of conservative eligibility requirements with regard to unprofitable companies or recent IPOs,” Rawson added.
- One of the fund’s main competitors is the SPDR S&P 500 ETF (NYSEArca: SPY). [ETF Spotlight: SPDR S&P 500]
The Latest News:
- The S&P 500 was just an inch away from 1,400 before pulling backing Wednesday. [Are Stock ETFs Still Cheap After Rally?]
- Financial stocks rallied after the Fed announced most of the largest U.S. banks passed their annual stress test, with the exception of a few, such as Citi, reports Rodgrigo Campos for Reuters.
- The Fed projects “moderate” growth over the next few quarters, with the jobless rate improving.
- “We are still not seeing the kind of volume that would suggest this is comprehensively being bought into by all investors,” Gordon Charlop, a managing director at Rosenblatt Securities, said in the Reuters report. “But people are able to tolerate more risk now.
iShares S&P 500 Index Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.