Why this could be a great time to invest in the iShares S&P 500 ETF (IVV)

The iShares S&P 500 ETF (ASX: IVV) is one of the leading exchange-traded funds (ETFs) to consider for the long-term, in my view.

I’m not just saying that because it has performed strongly over the past several years – it has returned an average of 15.4% over the prior decade. Past performance is not a guarantee of future returns of course.

But, there are a few reasons why I think it’s a great time to invest.

Lower valuation

As the chart below shows, at the time of writing, the IVV ETF had actually fallen by 7% since 12 November 2025.

There has been significant volatility in the last few months for the US share market, with AI worries hitting certain businesses, as well as a strengthening of the Australian dollar against the US dollar.

On 12 November, A$1 was equivalent to 65 US cents and it’s now 71 US cents. In my view, that makes it a better time to invest in US businesses and US earnings.

When prices fall of great businesses, I get excited about the opportunity. It’s not often that the IVV ETF falls as much as it has. It’s always possible it could drop further.

The businesses continue to be at the forefront

If an Aussie investor wants to gain exposure to many of the world’s greatest businesses, all in one place, then the iShares S&P 500 ETF is one of the leading options.

It provides exposure to 500 of the largest and most profitable businesses listed in the US. That includes names like Nvidia, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta Platforms and Berkshire Hathaway.

Many of these businesses are driving the technology space forwards with semiconductors, AI, cloud computing, social media, smartphones, e-commerce and much more. It’s these areas that are likely to drive earnings higher and help push the share prices higher.

I’m not expecting every single business to perform strongly forever, but new businesses can come up the holdings list and continue to make the IVV ETF one of the best ASX ETFs to hold.

Ultra-low fees

It’s not just its great holdings that make this investment so appealing. There’s also the fact that it’s one of the cheapest ASX ETFs available to Australian investors.

The IVV ETF has an annual management fee of just 0.04%, which is incredibly low and means virtually of the gross returns generated stay with investors each year. That makes it a very effective choice for wealth building with such low costs and providing exposure to wonderful businesses.

The post Why this could be a great time to invest in the iShares S&P 500 ETF (IVV) appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs you need to know
• Why these ASX ETFs could be perfect for buy and hold investors
• 3 ASX ETFs to buy and hold for 25 years
• What’s the likelihood of a stock market crash before the end of 2026?
• Is this the best ASX ETF to buy to build wealth?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.