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IHVV

$59.47-0.97%S&P 50073/100
Fund Page ↗

iShares S&P 500 (AUD Hedged) ETF · BlackRock

Data as at 29 March 2026

TL;DR

Tracks the S&P 500 with the AUD/USD exchange rate hedged. Returns reflect US sharemarket performance in AUD terms, without currency movements adding to or subtracting from gains.

MER (Annual Fee)
0.10%
#5 lowest in S&P 500
1Y Return
+14.7%
3Y Return (p.a.)
+16.9%
Dividend Yield
0.79%
Trailing 12 months
AUM
$3,306.8M
Assets under management
Avg Daily Turnover
$5.6M
Avg shares × unit price
Unit Price
$59.47
As at 29 March 2026
Provider
BlackRock
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Strategy

Holds the same 500 US companies as IVV but uses monthly-rolled currency forwards to remove AUD/USD exposure. The hedge costs approximately 0.07% per year beyond the underlying expense ratio.

Top Holdings

Key Fact

The AUD fell from around US$1.10 in 2011 to below US$0.63 in 2022 — a 43% decline. Investors in unhedged US funds collected that currency tailwind over the period; IHVV holders collected only the equity return, not the currency movement.

Suited for

Investors who want S&P 500 returns without the AUD/USD exchange rate variable, or who expect the AUD to strengthen against the USD (which would reduce unhedged returns).

Risks

Hedging costs are embedded in the 0.10% MER versus 0.03% for unhedged IVV. Over the last decade, the AUD weakened against the USD — investors in unhedged IVV earned extra currency return that IHVV holders did not receive.

IHVV Comparisons

ETFCheck Score73/100
Fees (40%)85
Fund Size (25%)67
Liquidity (20%)64
Yield (15%)60
How scores are calculated →
Other S&P 500 ETFs
IVV
0.04% MER
89
USX
0.07% MER
73
VTS
0.03% MER
61
SPY
0.09% MER
49View all S&P 500 ETFs →

Frequently Asked Questions - IHVV

When does it make sense to choose IHVV over the unhedged IVV?+
IHVV suits Australian investors who want pure S&P 500 equity returns without AUD/USD currency fluctuations affecting performance. It's particularly useful when you expect the Australian dollar to strengthen against the US dollar, which would erode unhedged IVV returns. However, IHVV's 0.10% MER is 2.5 times higher than IVV's 0.04%, and hedging costs fluctuate with the RBA/Fed interest rate differential, which currently adds further drag to returns.
How much does currency hedging actually cost in IHVV and where does that show up?+
IHVV's hedging cost is embedded in the fund's performance rather than the stated 0.10% MER. The cost reflects the interest rate differential between Australian and US cash rates - when the RBA rate is below the Fed rate, hedging effectively earns a small premium, and vice versa. This variable cost partly explains IHVV's 17.4% one-year return versus IVV's 19.6%, though currency movements also contributed to that gap significantly.
Can I hold both IVV and IHVV in my SMSF for a strategic currency approach?+
Absolutely - many SMSF trustees split their US equity allocation between IVV (unhedged) and IHVV (hedged) to partially manage currency risk. A common approach is a 50/50 or 70/30 split, reducing portfolio volatility from AUD/USD swings while retaining some natural currency diversification. Both are Australian-domiciled BlackRock funds with no US estate tax concerns, and distributions from each are treated as foreign income without franking credits for ATO purposes.
What happens to IHVV's performance if the RBA cuts rates while the Fed holds steady?+
If the RBA cuts rates while the Fed holds, the interest rate differential widens, increasing the implicit cost of AUD/USD hedging within IHVV. This would create additional performance drag beyond the 0.10% MER, further widening the gap versus unhedged IVV. Simultaneously, a rate cut may weaken the AUD, which would actually boost IVV's unhedged returns - making the performance divergence between the two funds potentially quite significant during such monetary policy scenarios.