What does the IHVV ETF do for a diversified portfolio?
The iShares IHVV ETF provides investors with exposure to the largest 500 US companies. This is a low-cost way to access leading US companies through a single fund.
The IHVV ETF could be used by investors looking to gain exposure to large US equities, while hedging their exposure to the volatility of the Australian dollar.
How big is the iShares IHVV ETF?
The iShares IHVV ETF had $603.09 million of money invested when we last pulled the monthly numbers. Given IHVV’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
IHVV ETF fees reviewed
iShares charges investors a yearly management fee of 0.10% for the IHVV ETF. This means that if you invested $2,000 in IHVV for a full year, you could expect to pay management fees of around $2.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the IHVV ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our iShares IHVV report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
