RTD Financial Advisors Inc. has raised its holdings in the iShares Core S&P 500 ETF (NYSEARCA: IVV) by 1.1% during the third quarter of 2023. This increase, detailed in its latest filing with the Securities and Exchange Commission (SEC), brings RTD’s total ownership to 141,479 shares after acquiring an additional 1,549 shares. As the largest position in its portfolio, the iShares Core S&P 500 ETF now constitutes 11.4% of RTD Financial Advisors’ total investments, valued at approximately $94,692,000.
The iShares Core S&P 500 ETF serves as a benchmark for large-cap U.S. equities and is designed to track the performance of the Standard & Poor’s 500 Index. Recently, other institutional investors have also adjusted their stakes in this fund. Notably, Heck Capital Advisors LLC acquired a new position worth $331,591,000 in the fourth quarter. Meanwhile, Bison Wealth LLC boosted its stake by 24.0%, now holding 7,799 shares valued at approximately $4,591,000 after adding 1,511 shares during the same period.
Several other firms have made significant investments in the iShares Core S&P 500 ETF as well. Caisse DE Depot ET Placement DU Quebec entered the fund in the first quarter with a new position valued at $33,714,000. Ieq Capital LLC increased its stake by 12.6%, now owning 135,000 shares worth around $75,856,000. Similarly, Piedmont Capital Management LLC lifted its position by 2.9%, bringing its total to 908 shares valued at $510,000. Currently, hedge funds and institutional investors own 70.12% of the ETF.
Market Performance and Sentiment
As of the latest trading session, the iShares Core S&P 500 ETF opened at $693.39. The ETF has shown a positive trajectory, with its 50-day simple moving average at $680.25 and a 200-day simple moving average of $654.34. The fund boasts a market capitalization of $727.71 billion, a price-to-earnings ratio of 25.10, and a beta of 1.00. Over the past year, the ETF has fluctuated between a low of $484.00 and a high of $693.86.
Market sentiment surrounding the ETF is currently optimistic. Short interest in IVV has decreased significantly, falling by approximately 21% in December, which leaves only 0.8% of shares sold short. The days-to-cover stands at approximately 0.7, indicating that a smaller short base may reduce the potential for volatility. This positive momentum aligns with the recent record close of the S&P 500, driven by strong performances from large-cap technology companies like Nvidia and Broadcom.
Analysts have noted the potential for a “Santa Claus rally,” suggesting strong upward trends may continue as the year ends, which could lead to further inflows into broad-index products such as IVV. With U.S. indices showing stability, market activity remains relatively subdued due to the holiday season, which often results in lower trading volumes.
Comparative Insights and Future Outlook
When comparing ETFs, the iShares Core S&P 500 ETF is highlighted for its lower expense ratio relative to similar funds like SPDR S&P 500 ETF Trust (SPY). While SPY offers greater intraday liquidity, the iShares fund is tailored more for long-term investors rather than active traders.
The recent disclosures of significant investors, including Ray Dalio, who have included ETFs among their top positions, may modestly influence market flows but are not expected to drive immediate price changes for IVV. Despite some downward pressure from U.S. futures on Christmas Eve, the overall outlook for the ETF remains positive as investor confidence holds steady.
As the year draws to a close, the iShares Core S&P 500 ETF continues to attract attention from institutional investors, reflecting sustained interest in large-cap U.S. equities and the potential for continued market growth.
