Summary:
Learn how the IVE ETF tracks the S&P 500 Value Index, its holdings, performance, fees, and why it appeals to traders seeking value in large-cap US stocks.
The iShares S&P 500 Value ETF (IVE) is a popular choice for traders and investors looking to capture the performance of large-cap US stocks with value characteristics.
Understanding how IVE tracks the S&P 500 Value Index can help you make informed decisions about portfolio construction, diversification, and long-term growth.
IVE is an exchange-traded fund designed to replicate the performance of the S&P 500 Value Index. This index consists of large-cap US companies that are considered undervalued relative to their peers, based on factors such as price-to-earnings, price-to-book, and dividend yield.
By investing in IVE, traders gain targeted access to value stocks within the S&P 500, a strategy that can complement growth-oriented holdings and help balance risk.
IVE uses a passive, index-tracking approach. The fund holds the same stocks as the S&P 500 Value Index, in roughly the same proportions, and rebalances periodically to stay aligned with the index's methodology. The index itself is constructed by selecting S&P 500 companies that score highly on value metrics, then weighting them by market capitalisation.
Key Features of IVE's Tracking Method:
Full Replication: IVE generally invests in all the securities of the S&P 500 Value Index, ensuring close tracking and minimising tracking error.
Periodic Rebalancing: The fund is rebalanced in line with the index, typically quarterly, to reflect changes in company fundamentals and market capitalisation.
Low Turnover: IVE's passive approach keeps portfolio turnover low, which helps reduce trading costs and tax liabilities for investors.
As of June 2025, IVE holds over 400 large-cap US stocks, with its top 10 holdings accounting for about 28% of the portfolio. The ETF is heavily weighted towards sectors such as technology, financials, healthcare, and consumer defensive.
Major holdings include Microsoft, Apple, Amazon, Exxon Mobil, Berkshire Hathaway, Procter & Gamble, Johnson & Johnson, JPMorgan Chase, Bank of America, and UnitedHealth Group.
| Top Holdings (June 2025) | % Portfolio Weight |
|---|---|
| Microsoft Corp | 7.16% |
| Apple Inc | 6.66% |
| Amazon.com Inc | 3.52% |
| Exxon Mobil Corp | 2.06% |
| Berkshire Hathaway Inc Class B | 1.89% |
| Procter & Gamble Co | 1.55% |
| Johnson & Johnson | 1.52% |
| JPMorgan Chase & Co | 1.38% |
| Bank of America Corp | 1.25% |
| UnitedHealth Group Inc | 1.18% |
These companies are selected for their value characteristics and market leadership, providing the ETF with both stability and potential for appreciation.
IVE has delivered competitive long-term returns, reflecting the performance of value stocks in the US market. As of March 2025, IVE's annualised returns are:
1-Year: 4.02%
3-Year: 9.12%
5-Year: 17.00%
10-Year: 9.93%
Since Inception: 7.07%
These figures are closely aligned with the S&P 500 Value Index, demonstrating the ETF's effectiveness in tracking its benchmark.
IVE is known for its cost efficiency, with an expense ratio of just 0.18%. This low fee makes it an attractive option for long-term investors and traders who want to minimise costs while gaining exposure to a diversified basket of value stocks.
Diversification: Exposure to hundreds of large-cap value stocks reduces single-company risk.
Value Tilt: IVE allows traders to tilt their portfolios towards undervalued companies, which can outperform during certain market cycles.
Liquidity: As one of the largest value ETFs, IVE offers high liquidity and tight bid-ask spreads, making it suitable for active trading.
Income Potential: Many IVE holdings pay dividends, and the ETF's yield is typically higher than that of growth-focused funds.
The IVE ETF provides a simple, cost-effective way to track the S&P 500 Value Index, giving traders and investors broad exposure to undervalued large-cap US stocks.
With its transparent methodology, strong performance history, and low fees, IVE is a compelling option for those seeking to add a value tilt to their portfolios. As always, ensure that IVE aligns with your investment objectives and risk tolerance before making any allocation decisions.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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