iShares Core S&P 500 ETF (IVV): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.