iShares Core S&P 500 ETF (IVV): Complete Beginner's Guide
iShares Core S&P 500 ETF (IVV) is a u.s. large-cap blend ETF from BlackRock with an expense ratio of 0.03% and $520.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 15.70%.
Last updated: April 2026
BlackRock • U.S. Large-Cap Blend
Expense Ratio
0.03%
AUM
$520.0B
Dividend Yield
1.30%
Inception
2000
Beginner Score
9.5/10
What is iShares Core S&P 500 ETF?
IVV tracks the S&P 500 index, offering exposure to 500 of the largest U.S. companies at one of the lowest costs available. It is a core building block for any portfolio, providing broad diversification across all major sectors of the American economy. Beginners appreciate IVV for its simplicity, rock-bottom fees, and strong long-term performance history.
IVV is managed by BlackRock and has been available since 2000. With $520.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
IVV at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 503 |
| P/E Ratio | 25.8 |
| Beta | 1.00 |
| Dividend Yield | 1.30% |
| AUM | $520.0B |
| Inception Year | 2000 |
| Issuer | BlackRock |
Top 10 Holdings in IVV
IVV holds 503 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
IVV's top holding is Apple Inc. (AAPL) at 7.20%, followed by Microsoft Corp. (MSFT) at 6.50% and NVIDIA Corp. (NVDA) at 6.20%. The top 10 holdings account for 36.00% of the fund's 503 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
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IVV Performance History
Here's how IVV has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
3.10%
1 Year
26.60%
3 Year
11.10%
5 Year
15.70%
10 Year
13.20%
IVV has returned 15.70% annualized over 5 years and 13.20% over 10 years. YTD return is 3.10%.
View data table
| Period | Return |
|---|---|
| YTD | 3.10% |
| 1 Year | 26.60% |
| 3 Year | 11.10% |
| 5 Year | 15.70% |
| 10 Year | 13.20% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
IVV scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 503 holdings, and has been available since 2000, giving it a proven track record.
How to Buy IVV — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "IVV" — Use the search bar in your brokerage platform to find iShares Core S&P 500 ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
IVV Sector Allocation
Here's how IVV distributes its investments across different sectors of the economy:
IVV's largest sector allocation is Information Technology at 31.8%, followed by Financials at 13.3% and Health Care at 11.7%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 31.8% |
| Financials | 13.3% |
| Health Care | 11.7% |
| Consumer Discretionary | 10.4% |
| Communication Services | 8.9% |
| Industrials | 8.3% |
| Consumer Staples | 5.7% |
| Energy | 3.5% |
| Utilities | 2.5% |
| Real Estate | 2.2% |
| Materials | 2.1% |
Dollar Cost Averaging Into IVV
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With IVV's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
IVV's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of IVV
Pros
- ✓One of the cheapest S&P 500 ETFs at just 0.03% expense ratio, saving investors money over decades
- ✓Enormous asset base of over $500 billion provides exceptional liquidity and minimal tracking error
- ✓Structured as a true ETF rather than a unit investment trust, allowing dividend reinvestment
- ✓Long track record since 2000 gives investors confidence in consistent index-tracking performance
Cons
- ✗Top 10 holdings account for over 35% of the fund, creating significant concentration in mega-cap tech
- ✗Excludes small-cap and mid-cap stocks that could boost returns during certain market cycles
- ✗Dividend yield of around 1.3% is modest compared to income-focused alternatives
IVV vs Similar ETFs
See how IVV stacks up against similar funds:
Frequently Asked Questions
Is IVV a good ETF for beginners?▾
IVV has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of IVV?▾
IVV has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in IVV?▾
You can invest in IVV with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does IVV pay dividends?▾
Yes, IVV pays dividends with a current yield of approximately 1.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in IVV?▾
The top holdings in IVV include Apple Inc. (7.20%), Microsoft Corp. (6.50%), NVIDIA Corp. (6.20%), and more. The fund holds 503 total positions, providing broad diversification across many companies.
What sectors does IVV invest in?▾
IVV's largest sector allocations are Information Technology (31.80%), Financials (13.30%), Health Care (11.70%). This sector distribution shows a focus on information technology stocks.
How much do IVV's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in IVV would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.