iShares Core S&P 500

Description

iShares Core S&P 500 is a equity ETF from iShares tracking the S&P 500 index through physical replication. Domiciled in Ireland and launched in 2002, the fund manages about 19.3 bn € and charges a TER of 0.07% — 7 € per year on a €10,000 investment. Income is paid out to investors periodically (distributing).

The fund in context

iShares Core S&P 500 competes with 37 other products on the same index (S&P 500): it ranks 5th by fund size and 12th by ongoing cost, with a TER of 0.07% against a group median of 0.08%. It has been listed since 2002, 24 years of track record — the oldest in its comparison group.

On a €10,000 investment the TER costs 7 € a year. The cheapest of the group is State Street SPDR S&P 500 UCITS ETF-UHG at 0.03%, or 3 € on the same amount: a difference of 4 € every year, roughly 40 € over ten years before compounding.

Replication is physical: the fund holds the underlying securities directly. The ten largest positions account for 36.3% of the portfolio.

Income is distributed periodically: it produces cash flow, but reinvesting it is up to you if the goal is capital growth. The fund is denominated in USD. That is not the same as currency risk: the exposure comes from the currencies of the underlying holdings, not from the denomination or the trading currency of a given listing.

Irish domicile lets the fund apply the Ireland–US tax treaty, with 15% withholding instead of 30% on US dividends received by the fund.

Top 10 holdings

Stock exchange listings

Compare with similar ETFs

• CSPX — iShares Core S&P 500 (Acc) 0.07%
• VUSA — Vanguard S&P 500 (Dist) 0.07%
• SPXS — Invesco S&P 500 (Acc) 0.05%
• VUAA — Vanguard S&P500 USDA 0.07%

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