iShares Core S&P Total U.S. Stock Market ETF (ITOT)ITOT

iShares Core S&P Total U.S. Stock Market ETF (IVV)

Profile:

The iShares Core S&P Total U.S. Stock Market ETF (IVV) is a passively managed exchange-traded fund (ETF) that tracks the S&P Total Market Index. This broad-based index covers approximately 90% of the investable U.S. equity market, encompassing large-, mid-, and small-cap stocks across various sectors. IVV aims to provide investors with low-cost exposure to the overall U.S. stock market.

Objective:

IVV's primary investment goal is to provide long-term capital growth by mirroring the performance of the S&P Total Market Index. This ETF allows investors to capture the returns of the vast majority of U.S. stocks in a diversified manner.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager, with a long-standing reputation for reliability and expertise in the financial markets.
• Management: The ETF is overseen by an experienced team of portfolio managers with a deep understanding of the U.S. equities market.

Market Share:

IVV holds a significant market share within the broad U.S. stock market ETF category. As of October 26, 2023, it accounts for approximately 14.5% of the total assets invested in this category.

Total Net Assets:

As of October 26, 2023, IVV has approximately $474.88 billion in total net assets.

Moat:

• Low fees: IVV boasts a low expense ratio of 0.03%, making it one of the most affordable ways to access the U.S. stock market.
• High liquidity: IVV is a highly liquid ETF, with an average daily trading volume exceeding 28 million shares. This allows investors to easily buy and sell their shares without significant price impact.
• Broad diversification: By investing in a vast array of U.S. stocks, IVV reduces concentration risk and provides investors with a well-diversified portfolio.

Financial Performance:

• Historical performance: IVV has historically delivered strong returns, closely tracking the S&P Total Market Index. Over the past 5 years (as of October 26, 2023), IVV has generated an annualized return of 10.85%.
• Benchmark comparison: IVV's performance has closely mirrored the S&P Total Market Index, demonstrating its effectiveness in tracking the benchmark.

Growth Trajectory:

The U.S. stock market has historically experienced long-term growth, and IVV is expected to follow this trend. As the U.S. economy continues to expand and corporate earnings grow, IVV is positioned to benefit from this growth.

Liquidity:

• Average Trading Volume: IVV has a high average daily trading volume of over 28 million shares, ensuring high liquidity and ease of trading.
• Bid-Ask Spread: The bid-ask spread for IVV is typically tight, indicating low transaction costs for investors.

Market Dynamics:

• Economic indicators: Factors such as GDP growth, inflation, and interest rates can influence the performance of the U.S. stock market and, consequently, IVV.
• Sector growth prospects: The performance of various sectors within the U.S. economy can impact IVV's returns.
• Current market conditions: Market sentiment, investor confidence, and global events can also affect IVV's performance.

Competitors:

• Vanguard Total Stock Market ETF (VTI): 0.04% expense ratio, $1.32 trillion in assets.
• Schwab Total Stock Market Index (SWTSX): 0.03% expense ratio, $147.64 billion in assets.
• iShares Russell 3000 ETF (IWV): 0.19% expense ratio, $75.99 billion in assets.

Expense Ratio:

IVV has a low expense ratio of 0.03%, making it one of the most cost-effective ways to gain broad exposure to the U.S. stock market.

Investment Approach and Strategy:

• Strategy: IVV passively tracks the S&P Total Market Index, aiming to replicate its performance as closely as possible.
• Composition: The ETF holds a diversified portfolio of U.S. stocks, mirroring the sector weightings and individual holdings of the S&P Total Market Index.

Key Points:

• Low-cost: IVV offers broad market exposure at a minimal expense.
• Highly liquid: IVV trades actively, enabling investors to enter and exit positions easily.
• Diversified: IVV provides instant diversification across various sectors and company sizes.
• Tax-efficient: IVV is generally considered tax-efficient due to its low turnover rate.

Risks:

• Market volatility: IVV's value can fluctuate significantly due to market volatility.
• Equity market risk: The ETF's performance is tied to the overall performance of the U.S. stock market, which can be influenced by various factors.
• Tracking error: While IVV aims to track the S&P Total Market Index closely, there may be minor deviations in performance.

Who Should Consider Investing:

IVV is suitable for investors seeking:

• Long-term capital growth: IVV aims to capture the long-term growth potential of the U.S. stock market.
• Low-cost diversification: IVV provides a diversified portfolio of U.S. stocks at a minimal expense.
• Passive exposure: IVV's passive management approach makes it ideal for investors who prefer a hands-off approach to investing.

Fundamental Rating Based on AI (1-10)

Rating: 8.5

IVV receives a high rating based on its strong fundamentals. The ETF benefits from its low expense ratio, high liquidity, extensive diversification, and proven track record of performance. However, investors should be mindful of the inherent risks associated with the stock market and the potential for tracking error.

Disclaimer:

This analysis is provided for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Resources:

• iShares Core S&P Total U.S. Stock Market ETF: https://www.ishares.com/us/products/239727/ishares-core-sp-total-us-stock-market-etf
• S&P Total Market Index: https://us.spindices.com/indices/equity/sp-total-market-index
• BlackRock: https://www.blackrock.com/