The iShares S&P 500 ETF (ASX: IVV) is one of the best exchange-traded funds (ETFs) that Aussies can buy, and this seems like the right opportunity to invest.
Share prices go up and down all the time, but when there is a significant decline, of 10% or more, that’s when investors are being offered an opportunity to invest at much better value.
I don’t know what share prices are going to do in the short-term (or long-term), but I do know that companies are doing their best to grow earnings over time. With that tailwind in mind, a correction (or worse) can be a great time to buy while the market is (temporarily) down.
There are three great reasons to invest in the IVV ETF right now. Let’s get into why.
Better valuation
It’s hard to escape the news of what’s happening in the Middle East and the flow-on impact that’s having on energy prices, inflation and the potential for interest rate rises.
It is possible that energy prices and inflation could increase in the coming weeks. But, that doesn’t put me off investing. In fact, market declines make me more motivated and excited to invest because of the better valuations.
If we’re shopping at a supermarket, would we rather buy when items are at discounted prices or when they’re at full price? I know which one is more appealing to me.
At the time of writing, the IVV ETF has dropped more than 11% since November 2025. That’s a sizeable decline, in my view, and means the price/earnings (P/E) ratio of the fund is more appealing.
If investors have been thinking about investing over the past six months, this is the best price to do it. The IVV ETF unit price could go even cheaper. If that were to happen, I’d say it’s an even better buy then.
Great businesses
The IVV ETF is invested in 500 of the largest and most profitable businesses that are listed in the US.
If we look at this group of companies, it has been a great investment to own over the last 50 years and particularly the last 15 years.
When you look at the businesses in the portfolio, you’ll find leaders across areas like AI, smartphones, internet search, computer software, healthcare, online video, automated driving, gaming, cybersecurity and so many more. It’d be a mistake not to have exposure to them in some way.
By introducing and developing new products and services, the businesses inside the IVV ETF are growing their revenue and laying the path for stronger earnings growth in the longer-term. I believe the ASX ETF will see the benefits of the improving financials of the underlying companies over time.
While the fund’s future long-term performance may not be as good as the past performance, I think it can continue to deliver strong returns, particularly at this lower valuation.
Cheap management costs
One of the best reasons to like the IVV ETF is the fact that it has extremely low annual management costs of 0.04%.
Having the ability to invest in these companies at such a low fee is a great advantage for Aussies just wanting to track the return of many of the world’s strongest businesses. That has a good chance of creating pleasing wealth-building returns.
Over time, plenty of fund managers have found it difficult to outperform the level of return of this ASX ETF, and I think this is a good period of time to dive in.
The post Why this looks like a great time to buy the iShares S&P 500 ETF (IVV) appeared first on The Motley Fool Australia.
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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 iShares S&P 500 ETF. The Motley Fool Australia has recommended 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.