The incredible run of the iShares S&P 500 ETF (ASX: IVV) has continued over November, with the popular ASX exchange-traded fund (ETF) hitting a new all-time record high just today.
Yep, IVV units opened at $69.86 each this morning but soon broke over the $70 mark after market open, topping out at $70.05 just after midday today. It's a landmark day for this incandescent index fund, which was as low as $53.52 only back in April.
Some investors might be viewing this latest high with caution, given IVV is now up more than 20% from those April lows. But let's talk about three reasons why investors might wish to consider buying this ETF today, even at these new record highs.
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Three reasons why the iShares S&P 500 ETF (IVV) might be a buy at this new record high
Investing in the best stocks in the world
The ASX is a wonderful place to invest. But the calibre and global impact of its holdings simply cannot measure up against what the S&P 500 Index has to offer. This flagship American index comprises the vast majority of the world's most dominant companies. Names ranging from Apple, Netflix and Amazon to Exxon Mobil, Costco and Colgate-Palmolive can all be found in the S&P 500, and thus, in the IVV ETF.
It's a diversified and high-quality index that will almost certainly continue to shape the world for years, if not decades, to come.
The AI boom might have further to run
The recent run of the IVV ETF has undoubtedly been driven by investor optimism over the expanding use of artificial intelligence (AI) technology. Whilst it's not yet certain how much money AI will make its pioneers, it is certain that it is, and will continue to, transform everyday work and life in the years ahead.
Luckily for IVV investors, the S&P 500 counts most of the world's top AI stocks as major holdings. That includes Microsoft, Google-owner Alphabet, Palantir and NVIDIA. If these companies do indeed benefit from the AI boom in years to come, so too will owners of this ASX ETF.
Warren Buffett says so
A final reason to consider the iShares S&P 500 ETF a buy today is that legendary investor Warren Buffett tells us so. Buffett has, on numerous occasions, recommended an S&P 500 index fund to almost every investor.
Back in 2017, he told the average American to "consistently buy an S&P 500 low-cost index fund… I think it's the thing that makes the most sense practically all of the time… Keep buying it through thick and thin, and especially through thin".
Although it is definitely not a 'thin' time to be buying right now, the advice from the Oracle of Omaha is clear.
