The iShares S&P 500 ETF (ASX: IVV) is one of the best exchange-traded funds (ETFs) Aussies can buy, and this seems like a good opportunity to invest.
Share prices go up and down all the time, but when there is a significant decline of 10% or more, that's when investors are being offered an opportunity to invest at a much better value.
I don't know what share prices are going to do in the short-term (or long-term), but I do know that companies are doing their best to grow earnings over time. With that tailwind in mind, a correction (or worse) can be a great time to buy while the market is (temporarily) down.
There are three great reasons to invest in the IVV ETF right now. Let's get into why.
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Better valuation
It's hard to escape the news of what's happening in the Middle East and the flow-on impact that's having on energy prices, inflation, and the potential for interest rate rises.
It is possible that energy prices and inflation could increase in the coming weeks. But that doesn't put me off investing. In fact, market declines make me more motivated and excited to invest because of the better valuations.
If we're shopping at a supermarket, would we rather buy when items are at discounted prices or when they're at full price? I know which one is more appealing to me.
At the time of writing, the IVV ETF has dropped more than 11% since November 2025. That's a sizeable decline, in my view, and means the price-earnings (P/E) ratio of the fund is more appealing.
If investors have been thinking about investing over the past six months, this is the best price to do it. The IVV ETF unit price could go even cheaper. If that were to happen, I'd say it's an even better buy then.
Great businesses
The IVV ETF is invested in 500 of the largest and most profitable businesses that are listed in the US.
If we look at this group of companies, they have been a great investment over the last 50 years, particularly the last 15.
When you look at the businesses in the portfolio, you'll find leaders across areas like AI, smartphones, internet search, computer software, healthcare, online video, automated driving, gaming, cybersecurity, and so many more. It'd be a mistake not to have exposure to them in some way.
By introducing and developing new products and services, the businesses inside the IVV ETF are growing their revenue and laying the path for stronger earnings growth in the longer term. I believe the ASX ETF will see the benefits of the improving financials of the underlying companies over time.
While the fund's future performance may not be as strong as its past, I think it can continue to deliver strong returns, particularly at this lower valuation.
Cheap management costs
One of the best reasons to like the IVV ETF is its extremely low annual management fee of 0.04%.
Having the ability to invest in these companies at such a low fee is a great advantage for Aussies who just want to track the returns of many of the world's strongest businesses. That has a good chance of creating pleasing wealth-building returns.
Over time, plenty of fund managers have found it difficult to outperform the returns of this ASX ETF, and I think this is a good time to dive in.
