The iShares S&P 500 ETF (ASX: IVV) is one of the most popular and effective investments because it offers low-cost exposure to the S&P 500. It also provides investors with passive income.

The exchange-traded fund (ETF) is highly diversified because it tracks the S&P 500, an index of 500 of the largest companies listed in the US.

Investors can utilise different share markets to build a passive income stream. The IVV ETF is certainly an option to consider. Let’s see what it would take to generate $1,000 of annual passive income from the ASX ETF.

Passive income from the IVV ETF

ETFs act as conduits for investors. They pass through the dividend income they receive to the investor.

The ETF portfolios have a significant influence on how much dividend income is generated.

If the portfolio is invested in high-yielding stocks, then the ETF itself will likely have a high dividend yield. But, the reverse is also true – if the holdings have a low dividend yield then the ASX ETF will also have low dividend yield.

At the end of August 2026, the IVV ETF reportedly had a dividend yield of 1.04%. That’s certainly not a high yield, but it’s better than nothing.

With a yield that low, an investor would need a sizeable investment to unlock $1,000 of dividend income.

To generate $1,000 of passive income at a dividend yield of 1.04%, we’re talking about requiring a $96,000 investment.

I think it’s clear you wouldn’t buy the IVV ETF with the thought of generating dividends. The dividend income is a bonus when it comes to owning units of this fund.

Why it can still be a great investment

Just because it doesn’t have a high dividend yield doesn’t mean it’s not a great investment.

The IVV ETF may be the most effective way to get exposure to a portfolio of high-quality US shares. But, we should think of these stocks as global businesses, not just US businesses – they give exposure to the global economy.

The iShares S&P 500 ETF’s top holdings include Nvidia, Apple, Microsoft, Alphabet, Amazon.com, Broadcom, Meta Platfoms, Micron Technology and Tesla.

If we’re going to invest in global blue-chips, the above names are the sorts of stocks I’d want to own.

In my view, it’s unsurprising that the strongest and biggest businesses manage to compound their earnings at a good pace. The IVV ETF has returned an average of 12.96% over the last five years.

I think the fund gives excellent investment exposure, for an extremely low cost of just 0.04%.

So, I wouldn’t buy the IVV ETF for passive income, but it’s an excellent investment for low-cost wealth-building.

The post How much must I invest in IVV ETF shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• Own US ETFs like IVV or NDQ? Here’s why your dividends are so low
• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• 10 top ASX ETFs to watch in 2027
• Want to invest in AI? Here are the best ASX ETFs for 2027
• 5 ASX ETFs for Aussie investors to buy and hold for 20 years

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, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, 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.

Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) shares have delivered some benchmark smashing gains over the past year.

On Monday afternoon, Woodside shares were trading for $31.96 apiece. This sees the Woodside share price up 36.5% in 12 months, compared to the 1.9% one-year losses posted by the S&P/ASX 200 Index (ASX: XJO).

Atop those capital gains, Woodside also paid $1.631 a share in fully franked dividends over the year. The ASX 200 oil and gas stock trades on a fully franked trailing dividend yield of 5.1%.

And BHP shares have performed even better.

On Monday, shares in Australia’s biggest miner – and the biggest stock on the ASX – were changing hands for $60.41 each, up 44.1% in 12 months.

BHP also paid two fully franked dividends over this time, totalling $2.419 per share. BHP stock trades on a fully franked trailing dividend yield of 4.0%.

And looking ahead, Fairmont Equities’ Michael Gable forecasts more outperformance to come from both ASX 200 titans (courtesy of The Bull).

Here’s why.

Should I buy BHP shares today?

“I believe commodities markets are in the early stages of a bull run, leaving BHP’s share price in a prime position to move higher,” Gable said.

Among the reasons Gable issued a buy recommendation for BHP shares is the miner’s fast-growing exposure to copper. The price of the red metal has surged over the last year amid strong demand growth spurred by the global energy transition and a huge new pipeline of AI enabled data centre construction.

Gable noted:

Copper now generates most of BHP’s earnings after it produced almost 2 million tonnes in full year 2026. The company should also benefit from constrained global supplies of copper. Iron ore is also a significant contributor to full year earnings.

The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. We view any share price dips as a buying opportunity.

Woodside shares tapping into energy crisis

Atop his bullish outlook on BHP shares, Gable also issued a buy recommendation on Woodside shares.

“We turned bullish on crude oil prior to the war in Iran due to a looming imbalance between supply and demand,” he said. “The war has interrupted supplies, which has led to higher prices.”

Summarising his buy advice, Gable concluded:

I believe crude oil prices are likely to move higher in the absence of a peaceful and sustained resolution in the Middle East. I acknowledge some investors doubt crude oil prices will move higher.

However, as the largest energy stock on the ASX, buying support should continue to grow for WDS.

The post Expert names Woodside and BHP shares as top buys today appeared first on The Motley Fool Australia.

More reading

• Should I buy BHP shares in October?
• Buy, hold, sell: Xero, South32, Woodside shares
• Buy, hold, sell: CBA, BHP, CSL shares
• 5 things to watch on the ASX 200 on Monday
• Woodside vs Westpac: Which ASX share is better for passive income?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.15% to 8,679.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to edge higher

The Australian share market looks set to edge higher on Tuesday despite a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points higher. On Wall Street, the Dow Jones fell 0.65%, the S&P 500 dropped 0.75%, and the Nasdaq tumbled 0.9%.

RBA meeting

The Reserve Bank of Australia is meeting on Tuesday and is largely expected to increase the cash rate. According to the latest ASX 30 day interbank cash rate futures contract, the market is pricing in a 90% probability of an interest rate increase to 4.60% at today’s meeting. Futures contracts are also predicting a rise to 5% by the middle of next year.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session on Tuesday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$93.29 a barrel and the Brent crude oil price is up 1.8% to US$106.18 a barrel. This was despite reports that Saudi Arabia’s pipeline is ramping back up.

Buy Minerals 260 shares

Minerals 260 Ltd (ASX: MI6) shares have risen 250% in just 12 months. The good news is that Bell Potter believes the run can continue. This morning, the broker has retained its buy rating on the gold developer’s shares with an improved price target of $1.45. It said: “MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works.”

Gold price sinks

ASX 200 gold shares such as Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a poor session after the gold price sank overnight. According to CNBC, the gold futures price is down 4% to US$4,148.5 an ounce. This appears to have been driven by a rise in US treasury yields to multi-year highs.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares tipped to return 38% to 60%
• Here are the top 10 ASX 200 shares today
• ASX 200 rallies from June lows. Is the worst over?
• Santos vs Viva Energy: Which ASX energy stock gets my vote today?
• 2 ASX 200 shares just upgraded to buy ratings

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.