Quick Overview:
An investment in the iShares S&P 500 ETF at the dawn of 2024 would have reaped noticeable gains by May, propelled by the robust performance of major US tech giants. Let’s delve into how this investment fared in a few months.
Top Points to Note:
- Impressive Growth: The ETF presented a capital gain of 12.7% in AUD terms, outpacing the S&P 500 Index’s rise of 9.4% in USD.
- Distribution Payouts: In addition to capital gains, investors received distributions yielding an additional return of 0.64%.
Insights/Analysis:
Breaking down the numbers, a $5,000 investment would have escalated to approximately $5,635, thanks to capital appreciation, with a bonus cash return from distributions. The significant uptick in major company shares like Microsoft, Alphabet, Amazon, Meta Platforms, and Nvidia significantly contributed to this surge, highlighting the ETF’s success.
Concluding Thought:
While the remarkable ascent of the IVV ETF within the first trimester of 2024 indicates a promising trajectory, investors should remember that market volatility can impact future growth. Nonetheless, the current performance underscores the potential of indexed ETFs in capturing market gains.