IShares Core S&P 500 ETF IVV combines a broadly diversified portfolio of U.S. large-cap stocks with low turnover and a miniscule price. This provides a durable edge over its Morningstar Category peers, earning it a Morningstar Analyst Rating of Gold. 

The strategy replicates the flagship S&P 500, which is a market-cap weighted basket of about 500 of the largest U.S. stocks. Rather than index rules dictating construction, an index committee has discretion over selecting stocks that meet certain liquidity and profitability standards. The index then weights the chosen constituents by their market cap. While a committee-based approach lacks transparency, it adds flexibility to reduce unnecessary changes during reconstitution. This tames transaction costs compared with more-rigid rules-based indexes.

U.S. large-cap stocks attract liquidity and widespread attention, such that new information is quickly reflected in prices. Market-cap weighting is a sensible approach here. It harnesses the market’s collective wisdom of the relative value of each holding with the added benefit of low turnover and associated trading costs. 

However, market-cap weighting may expose the index to significant stock- or sector-level concentration during the market’s intermittent manic episodes. This can tilt the portfolio toward richly valued names or sectors, as was the case during the post-lockdown rally in 2020. In the long run, the benefits of broad diversification, low turnover, and a low fee outweigh these drawbacks.

Analyst Rating

One of the cheapest S&P 500 index-trackers.

Associate Analyst

Mo'ath Almahasneh

Microsoft

Apple

Amazon

NVIDIA

Alphabet

Tesla

Berkshire Hathaway Inc. - Ordinary Shares - Class B

UnitedHealth Group

This broadly diversified portfolio is representative of the opportunity set in the large-blend category. It relies on the market’s collective wisdom to size its positions and enjoys low turnover as a result. It earns a High Process Pillar rating.

The S&P 500 selects stocks from the pool of the largest 500 U.S companies that pass its liquidity and profitability screens. The profitability screen requires that the sum of a company’s GAAP earnings over the past four quarters be positive as well as the most recent quarter. The screen imparts a slight quality tilt to the portfolio but has a limited impact on the portfolio’s composition relative to other large-cap-focused benchmarks since many large-cap stocks tend to be profitable. But there have been instances where profitability prevented otherwise qualified companies from index inclusion. For example, Tesla TSLA was added to the index only after it passed the profitability screen in December 2020, despite passing the liquidity and market-cap thresholds in January 2013. Once the index committee selects stocks, it weights them by market cap.

Market-cap weighting harnesses the market’s collective wisdom on stocks’ relative valuations and helps curb turnover and trading costs. The index committee further curbs turnover by implementing changes as it sees fit rather than adhering to a strict reconstitution schedule.

High

Process

BlackRock's industry-leading technology, global footprint, and extensive supporting cast earn an Above Average People Pillar rating. The team employs BlackRock's Aladdin platform to fulfill much of its portfolio management tasks, and global trading desks allow traders to conduct foreign transactions in a cost-effective way.  

The iShares team has endured had some turnover over the past few in recent years. But index-tracking performance should remain tight, thanks to heavily automated processes and several long-tenured managers that remain at the helm. Amy Whitelaw left the team in February 2023 for another role within the organization. Rachel Aguirre left the team in March 2021 after she was promoted to iShares head of product engineering. Paul Whitehead replaced Alan Mason as a manager in January 2022, when Mason left to focus on the firm's customized institutional indexing capabilities. IShares has yet to name a successor for Whitelaw, but they will join a seasoned group in Greg Savage and Jennifer Hsui, who will continue to oversee this fund and have helped manage iShares ETFs since the early 2000s.  

These managers interact with a wider team of traders and managers around the globe to execute the fund's day-to-day operations. The larger number of managers also limits the impact of personnel turnover when it does occur. A portion of their compensation is tethered to index-tracking performance, which aligns manager interests with those of the fund's investors.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Core S&P 500 ETF

IVV tracks a market cap-weighted index of US large- and mid-cap stocks selected by the S&P Committee.

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 High Dividend ETF

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SPDR Portfolio S&P 500 Value ETF

Vanguard S&P 500 ETF

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Vanguard Dividend Appreciation ETF

Though a year ago our name changed to VettaFi, ETFs are still at the core of what we do. We run two widely viewed websites — ETF Trends and ETF Database — and billions of dollars are invested in ETFs tied to VettaFi-run indexes.

Chart of the Week: Advisors Pair ETFs With Other Investments

American stocks are doing well, helped by big technology companies like Tesla, Apple, Nvidia, and Microsoft. The S&P 500 index moved to a bull market last week, signaling that it had jumped by over 205 from the lowest level this year.

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The S&P 500 has entered a new bull market, and the indicators seem to support its continuity.

S&P 500 Enters New Bull Market: ETFs to Play

Direxion Daily S&P 500 Bull 3x Shares

ProShares Ultra S&P 500

ProShares UltraPro S&P500

Though the latest Wall Street rally in narrow in nature, a run of strong economic data, such as an upbeat labor market, easing inflation, steady interest rates, and decent personal income, create a positive backdrop.

Will S&P 500 ETFs to Slump Ahead Except the Super Seven?

JPMorgan BetaBuilders Europe ETF

iShares MSCI USA ESG Optimized ETF

iShares Russell 1000 Value ETF

JPMorgan Equity Premium Income ETF

iShares MSCI USA Quality Factor ETF

Vanguard Information Technology ETF

Vanguard Total Stock Market ETF

The strong surge in mega-cap technology stocks has helped the Nasdaq composite post its strongest fund-flows week return since the week ended February 1. The preliminary flows figures through the first five months of the year show that equity funds (including ETFs) have handed back a net $77.5 billion. While we are not out of the woods yet, with just two days to spare, investors can finally cross off one of the more pressing issues from their list of worries after President Joe Biden signed the bipartisan debt ceiling bill on Saturday, June 3.

Tech Rally Attracts Interest In Select ETF Classifications

SPDR Portfolio S&P 500 ETF

By Jeremy Schwartz, CFA Global Chief Investment Officer Follow Jeremy Schwartz @JeremyDSchwartz There is an important factor impacting the earnings of S&P 500 companies that also carries implications for potential diversification when investing abroad. Many believe a good reason to invest outside the U.S. is to obtain foreign currency exposure as an attractive diversifier.

A Surprise Influence in S&P 500 Earnings? The Dollar

iShares Core U.S. Aggregate Bond ETF

Blackrock Flexible Income ETF

Blackrock Large Cap Value Etf

BlackRock Ultra Short-Term Bond ETF

iShares S&P 500 Value ETF

iShares Short Maturity Bond ETF

iShares MSCI USA Value Factor ETF

Active ETFs represent just a 6% share of the ETF markets, but advisors are gravitating toward them. The products have emerged as one of the fastest-growing categories within the ETF industry.

BlackRock's Greater Focus on Active ETFs

Invesco QQQ

American stocks are doing great as one of the biggest risks in the economy has dissipated. The closely-watched tech-heavy Invesco QQQ ETF has jumped by 32% this year while the iShares Core S&P 500 (IVV) has jumped by 11.12% this year.

QQQ and IVV ETFs: bull run returns as fear and greed jumps

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares U.S. Treasury Bond ETF

iShares 7-10 Year Treasury Bond ETF

iShares Russell 2000 ETF

iShares National Muni Bond ETF

iShares Short Treasury Bond ETF

iShares Short-Term National Muni Bond ETF

Investors were net sellers of fund assets (including those of conventional funds and ETFs) for the first week in six, redeeming a net $2.1 billion for the LSEG Lipper fund-flows week ended Wednesday, May 31. Equity ETFs witnessed net inflows for the second week in a row, attracting a little less than $7.2 billion for the most recent fund-flows week. For the first week in four, taxable fixed income ETFs experienced net outflows, handing back $957 million this week.

U.S. Weekly FundFlows Insight Report: Money Market Funds And Large-Cap ETFs Are Main Attractors Of Investors' Assets For The Fund-Flows Week

Invesco S&P 500 Top 50 ETF

Most Wall Street analysts raised their target price on S&P 500 for this year for the second time in many weeks.

Analysts Raise S&P 500 Target Price: ETFs to Buy

Invesco DB Commodity Index Tracking Fund

Vanguard FTSE All-World ex-US Index Fund

Vanguard Real Estate ETF

Valid until the market close on June 30, 2023  The S&P 500 closed May with a monthly gain of 0.25%, after a gain of 1.46% in April.

Moving Averages: S&P Finishes May Up 0.25%

Invesco S&P 500 Equal Weight ETF

Invesco ESG S&P 500 R Equal Weight ETF

Bank of America recently raised its 2023 price target for the S&P 500 to 4,300 and to 4,600 in a bullish case scenario.

Is a Further 10% Rally in S&P 500 ETFs Possible?

The S&P 500 has risen by nearly 11% this year, but the equal-weighted S&P 500 remains flat as a few stocks make up most of the index's performance. The S&P 500 index has become increasingly concentrated in a few stocks, with ~25% of its value held in just five companies: Apple, Microsoft, Amazon, Nvidia, and Alphabet. The "Index Effect" may create a recursive issue for IVV as the fund disproportionately buys the largest stocks, pushing their market capitalizations even higher.

IVV: Concentration Risk Plagues The S&P 500

Qraft AI-Enhanced US Large Cap Momentum ETF

iShares MSCI USA Momentum Factor ETF

Qraft AI-Pilot US Large Cap Dynamic Beta Etf

Artificial intelligence is the latest buzzword to become part of the ETF ecosystem. We believe there is tremendous potential to invest in companies like NVIDIA and Shopify that are benefiting from the long-term trend.

A New Artificial Intelligence ETF Simplifies Asset Allocation

iShares iBoxx High Yield Corporate Bond ETF

JPMorgan Ultra-Short Municipal Income ETF

iShares iBoxx $ Investment Grade Corporate Bond ETF

Schwab Short-Term US Treasury ETF

iShares 1-3 Year Treasury Bond ETF

Investors were net purchasers of fund assets for the fourth week in a row, injecting a net $4.6 billion for the week ended Wednesday, May 17. Equity ETFs experienced net outflows for the second week in three, handing back a little less than $3.4 billion for the most recent fund-flows week.

U.S. Weekly FundFlows Insight Report: Investors Flock To Money Market Funds And Taxable Bond ETFs During The Fund-Flows Week

An S&P 500 ETF gives investors instant diversification. Stock market volatility is inevitable.

Bull Market or Not, This ETF Should Be Your Go-To Investment

Stock futures on Friday point to Wall Street snapping a four-day losing streak, helped by strength in Apple shares after the tech giant's results — though doubtless the nonfarm payrolls report will have something to say about this.

The S&P 500 will not break above its range soon, says Goldman Sachs. Here are 6 reasons why.

iShares MSCI ACWI ETF

iShares Core Total USD Bond Market ETF

SPDR Portfolio Intermediate Term Corporate Bond ETF

SPDR Nuveen Bloomberg Municipal Bond ETF

Investors were net purchasers of fund assets for the second week in a row, injecting a net $5.8 billion for the week ended Wednesday, May 3. Equity ETFs experienced net outflows for the first week in four, handing back a little less than $7.8 billion for the most recent fund-flows week.

U.S. Weekly FundFlows Insight Report: Despite Plus-Side Returns For The Week, ETF And Fund Investors Duck For Cover During The Fund-Flows Week

Billionaire Investor: U.S. Going Through 'Textbook' Financial Crisis - SPY Implications.

Billionaire Investor: U.S. Going Through 'Textbook' Financial Crisis - SPY Implications

iShares 20+ Year Treasury Bond ETF

Financial Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Overall, ETFs pulled in $2.4 billion in capital for the week (ending Apr 21).

5 ETFs That Gathered Maximum Capital Last Week

Catalyst Watch: Q1 GDP, Amazon Earnings (Podcast).

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You don't have to know a lot about the stock market to earn hundreds of thousands of dollars. The right investment can maximize your earnings while limiting risk.

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The last time it was above 4200 was in August. Since then, the index has seen brief rallies toward that level, only to see sellers come in to knock it lower.

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With a recession possibly on the way, many investors are feeling nervous. However, there's good news about the future of the market.

News for iShares Core S&P 500 ETF ETF (IVV)