iShares S&P 500 Index (ETF) (IVV)

NetscribeETF (96.39) Submitted: 3/27/07 8:49 AM : Start Price: $143.40 IVV Score: 0.14

iShares S&P 500 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the S&P 500 Index (the Index). The Index measures the performance of the large-cap stocks of the US equity market. This fund owns all the stocks in the S&P 500 Index, which includes more than 80% of the market's capitalization of US stocks, but leaves out most mid- and virtually all small-cap equities.


With a market capitalization slightly in excess of $18.7 billion and 500 stocks constituting the Fund, this Fund is like an elephant trying hard to dance, but no where close to giving a stunning performance. Financial sector tops the list with 21.67% share in the Fund followed by 15% in IT and 12% in healthcare, among others. The top ten companies hold a fifth of the entire Fund. While closely tracking the S&P 500, the Fund has managed to generate a return of merely 13% over the past one year.


At 0.1%, it's one of the cheapest funds that track the S&P 500 Index. But even with that tiny price tag, the case for this ETF is simply dull. In fact, there are competing ETFs that give this ETF a run for its money. For example, the Vanguard Large Cap ETF costs simply 0.07% making it the cheapest ETF in the market, giving a comparable performance. Hence, this Fund results in a less value-for-money option.

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