iShares S&P 500 AUD Hedged ETF (IHVV)

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100920-2023-10-26-02:33.pdf
FUND MANAGER BlackRock Investment Management (Australia)

The Fund seeks to achieve its objective by tracking the performance 
of the S&P 500® Net TR Index (Hedged to AUD)


The Fund aims to provide investors with the performance of an 
index, before fees and expenses (including the cost of hedging). 
The index is designed to measure the AUD hedged performance of 
large capitalisation US equities. 

BENCHMARK S&P 500 Hedged Australian Dollar Index
FUND SIZE S&P 500 Hedged Australian Dollar Index
FEES 0.10% p.a.



Benefits of iShares

iShares ETFs are managed funds listed or quoted on exchanges (including ASX) providing you with the opportunity to gain exposure to a diversified portfolio of assets in a single transaction.

The significant benefits of investing in the Funds include:

  • low cost access to diversified portfolios of international shares;
  • access to market capitalisation weighted, minimum volatility and multiple-factor exposures; and
  • currency hedged options, to seek to minimise the impact of Australian dollar volatility on investor returns.

Other benefits of investing in iShares ETFs generally include:

  • Diversification: In contrast to a direct investment in a single company or bond, an iShares ETF provides, as far as possible and practicable, exposure to all of the securities or instruments within the index that the particular iShares ETF seeks to track.
  • Access global markets: iShares ETFs let you achieve international diversification by investing in overseas equity and bond markets. With iShares ETFs you can gain exposure by asset class, market capitalisation, country and sector.
  • Liquidity and transparency: Each iShares ETF seeks investment results that correspond generally to the performance (before fees and expenses) of a particular index. As a traded security, an iShares ETF enables you to enter and exit your holding on the ASX. You can easily track performance and trade during ASX trading hours (subject to ASX rules).
  • Managing risk: Investing in an iShares ETF can assist you in establishing a portfolio appropriate to your investment needs and risk profile.
  • Lower cost: As each iShares ETF is passively managed and designed to track the performance of a particular index, the expenses of managing an iShares ETF are generally lower compared to other forms of retail managed funds. However, brokerage or adviser fees may still apply when buying or selling units of an iShares ETF.
  • Receipt of income: You will generally receive income from your investment in the form of distributions. Distributions may include dividends, coupons and other income. There may be years in which no distributions are made.
  • Accessibility: iShares ETFs can offer a cost-effective way to gain exposure to a diversified portfolio of securities. They can be less costly than purchasing a large number of individual securities as there are less trading costs and they offer lower thresholds than an investor might otherwise be able to afford.


This product is likely to be appropriate for a consumer seeking 
capital growth with a high to very high risk/return profile. 



Key Features

About the Fund

The fund aims to provide investors with the performance of the market, before fees and expenses (including the cost of hedging), as represented by an index composed of large capitalisation U.S. equities (hedged to Australian dollars). 

The index, the S&P 500 Hedged Australian Dollar Index, is designed to measure the Australian dollar hedged performance of large capitalisation US equities.


  1. Exposure to large, established U.S companies 
  2. Low cost access to the top 500 U.S. stocks in a single fund 
  3. Diversify your portfolio internationally while seeking to minimise the impact of Australian dollar volatility on your returns


How we invest your money

The Fund seeks to achieve its objective by tracking the performance of the S&P 500 Net TR Index (Hedged to AUD) (referred to as the Index).

We believe that an optimisation investment strategy is the most appropriate investment strategy to track the performance of the Index as it takes into account liquidity and transaction cost impact and overall risk relative to the Index. Optimisation is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Index. The securities selected are expected to have, in aggregate, investment characteristics (based on factors such as market capitalisation and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. Therefore, the securities to which each Fund is exposed may or may not include all of the securities in its Index and the weighting of such securities may differ to the weighting of securities in the Index.

The Fund may choose to implement some or all of its optimisation investment strategy through an investment in the iShares Core S&P 500 ETF (referred to as the Underlying Fund); a US domiciled fund that aims to track the performance of a non-Australian dollar hedged version of the Index. Refer to the section of the PDS titled "The Underlying Funds for further information on the Underlying Fund.

The Fund applies a passive currency hedge, which seeks to minimise the effect of currency fluctuations on returns by converting the currency exposure of the Index back to Australian dollars. Refer to the section of the PDS titled "Currency hedged funds for further information.

What does the Fund invest in?

The Fund is generally exposed to the large-capitalisation US equity securities that form the Index and to depositary receipts representing securities of the Index.

The Fund may have limited exposure to securities that are not constituents of the Index, including derivatives, where such securities provide similar performance (with matching risk profile) to Index securities. However, from time to time the Fund may be exposed to all constituents of the Index.

About the Index

The Index aims to measure the Australian dollar hedged performance of the large-capitalisation sector of the US equity market, as determined by S&P.

The Index is a float-adjusted, market capitalisation weighted index, which includes 500 leading US companies with a market capitalisation of at least US$6.1 billion.

For more information please see Section 15 of the PDS