This iShares S&P 500 review will discuss what it is, how to invest, how certain products performed, and whether they’re a good investment.
For the purposes of this article, we’ll look into the following investment options:
- iShares Core S&P 500 ETF (IVV)
- iShares S&P 500 Value ETF (IVE)
- iShares S&P 500 Growth ETF (IVW)
- iShares S&P 500 Index Fund (WFSPX)
- iShares S&P 500 BuyWrite ETF (IVVW)
- iShares ESG Screened S&P 500 ETF (XVV)
Under BlackRock’s management, iShares was founded in 2000 as a provider of exchange-traded funds. It has since grown to be one of the largest ETF suppliers globally.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).
The facts could change from the time of writing, so it’s wise to not execute any investments based on this review alone.
What is iShares S&P 500?
The iShares S&P 500 are composed of index fund and exchange-traded fund products designed to replicate the performance of the S&P 500 index.
The benchmark is composed of 500 of the largest publicly traded US companies.
iShares S&P 500 Products
iShares Core S&P 500 ETF
This fund was established on May 15, 2000. Currently holding 503 distinct assets, it has a quarterly distribution schedule. It is traded on the NYSE Arca exchange.
Microsoft is the ETF’s largest investment with 7.23% of the portfolio. Apple Inc. and Nvidia are next, with 6.61% each. At 32.37% of the fund, information technology is the largest sector allocation; financials is the second-largest at 12.39%.
IVV has net assets of $487.9 billion as of June 30, 2024.
iShares Core S&P 500 ETF Fees
There are no distribution or servicing costs associated with the fund, and its management fee is 0.03%. But when it buys and sells shares, it could pay transaction fees like commissions.
For investors holding shares in taxable accounts, a higher portfolio turnover rate may result in higher transaction expenses and even higher taxes.
Core S&P 500 iShares ETF Performance
Net asset value over a one-year period and the last five years respectively hit 24.53% and 15.01%. The fund has had an average yearly return of 7.60% since its launch.
iShares S&P 500 Value ETF
Rolled out on May 22, 2000, this NYSE Arca exchange-listed fund has a quarterly distribution schedule and holds 438 different assets. Net assets are worth $32.8 billion.
The top holdings include:
- Berkshire Hathaway Class B at 3.78%
- JPMorgan Chase & Co at 2.98%
- Exxon Mobil at 2.65%
The largest sector allocation is in financials making up 22.77% of the ETF, followed by healthcare at 18.06%.
S&P 500 Value ETF Fees
Management fee is 0.03%. It does not charge any distribution or service fees.
IVE ETF Performance
Over the past year, the investment opportunity has achieved a 1-year NAV return of 15.08%. It has averaged a yearly return of 11.70% over the past 5 years, and since its inception, it has delivered 7.03%.
iShares S&P 500 Growth ETF
IVW, which holds 231 different assets, was unveiled May 22, 2000. It has $52.7 billion in net assets and is listed on the NYSE Arca.
Payments are made to investors every quarter.
The major holdings are Microsoft at 12.57%, Nvidia at 11.50%, and Apple at 11.49%. The largest sector allocation is 50.80% in IT, followed by communication services at 13.17%.
IVW Fees
The ETF’s management cost is 0.18%. No distribution or service fees are levied.
iShares S&P 500 Growth ETF Performance
Over the past year, the fund logged an NAV return of 32.27%. Meanwhile, 16.66% and 7.81% were recorded over the past 5 years and since launch.
iShares S&P 500 Index Fund
The WFSPX fund was introduced on July 31, 1993. It holds 504 different assets, distributes earnings every quarter, and currently has net assets of nearly $40.7 billion as of August 8, 2024.
Microsoft, Nvidia, and Apple are the top holdings at 7.20%, 6.59%, 6.58%. The largest sector allotment with 32.2% is IT, trailed by financials at 13%.
WFSPX Fees
The ETF’s net expense ratio is 0.03%.
iShares S&P 500 Index Fund Performance
For Class K shares, the average yearly aggregate return is 24.49% over the past year and 15.02% over the past 5 years.
Looking at the calendar year performance, the fund logged 26.23% in 2023, -18.13% in 2022, and positive returns from 2019 to 2021 based on available data.
iShares S&P 500 BuyWrite ETF
Unlike the previous funds, this ETF offers monthly payments. Its net assets stand at approximately $21.2 million. The fund was initiated on March 14, 2024.
IVVW currently holds 1 asset, with sector allocations of 30.30% in IT, 12.93% in financials, and 12.17% in healthcare.
S&P 500 BuyWrite ETF Fees
The fund has a management cost of 0.22%, plus acquired fund charges and expenses of 0.03%.
S&P 500 BuyWrite ETF Performance
The cumulative total return is 1.60% for the past month, 5.78% for the past three months, and 4.96% since introduction.
iShares ESG Screened S&P 500 ETF (XVV)
Launched on September 22, 2020, this fund offers quarterly payouts and has assets of nearly $245 million, net. It holds 445 assets.
The sector exposure includes infotech at 33.37% and financials at 13.67%. The main holdings are Microsoft at 7.92%, Nvidia at 7.25%, and Apple at 7.24%.
iShares ESG Screened ETF Fees
Management costs assessed are 0.08%.
XVV Performance
As of July 31, 2024, average annual total return was 23.18% for 1 year and 15.69% since inception.
Total return for 2023 and 2021 were 29.80% and 29.29%, respectively. Meanwhile, 2022 recorded a loss of 21.46%.
How to invest in iShares S&P 500
- Select an online brokerage that allows you to trade US ETFs. If you are not in the US, confirm that the platform offers access to global marketplaces.
- Fulfill the account setting requirements, which often include supplying financial data, identity documents, and personal information.
- Open a brokerage account and deposit funds. Bank transfers, credit card payments, or other payment options accepted by the brokerage are usually used for this.
- Find the iShares ETFs that pique your interest by using the trading tool provided by your brokerage.
- Make a purchase order after deciding how many shares you would like to acquire. Depending on how you plan to invest, you can select from different order types, including limit and market orders.
- Follow up on your purchase and make any required portfolio adjustments on a regular basis to monitor the progress of your investment.
Consider speaking with a financial expert for tailored guidance on how to include iShares ETFs into your investment plan.
Is iShares S&P 500 a good investment?
Because of its low costs and track record of success, the iShares S&P 500 ETF is regarded as a good investing choice for the long haul.
But as a prospective investor, you should think about your investment plan, timing, and risk tolerance, as well as the state of the market.
Certain market volatility risks may be reduced by regular investing, such as dollar-cost averaging.
If you are looking for alternatives or a second opinion, we can talk.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
