Equity ETFs
S&P 500 ETF: the 500 largest US listed companies
The S&P 500 bundles roughly 500 large US listed companies weighted by free-float market value. An ETF on that index is the simplest way for European investors to buy the market in a single order.
- Ticker
- CSPX / SXR8
- ISIN
- IE00B5BMR087
- Issuer
- iShares (BlackRock)
- Ongoing charges
- ±0,07% per jaar
- Structure
- Physically full replication, accumulating (Ireland)
Figures are indicative and checked periodically. Always verify the ISIN, ongoing charges and index in the issuer's latest KID and factsheet before you invest.
What is inside
The index weights by market capitalisation, so the largest companies dominate. The top ten positions account for a substantial share of the index, driven by big technology. Buying an S&P 500 ETF is not buying an evenly spread basket; it is buying a basket tilted towards the past decade's winners.
Sector spread is broad, but geographic spread is zero: everything is American and denominated in dollars.
- About 500 companies, market-cap weighted
- Concentration in the largest technology names
- Underlying currency: US dollar
Accumulating or distributing
Accumulating share classes reinvest dividends inside the fund; distributing classes pay them out. Accumulating saves transaction work and sometimes tax friction, while distributing suits investors who want income.
Irish-domiciled ETFs are widely used in Europe because Ireland's tax treaty with the US reduces withholding tax on US dividends from 30% to 15%.
Costs that actually matter
Ongoing charges on broad S&P 500 ETFs sit between roughly 0.03% and 0.12% per year. For small, frequent purchases, broker commissions and the exchange spread usually matter more.
Also watch tracking difference: the gap between fund return and index return. Efficient securities lending can shrink it below the TER; a less efficient fund widens it.
- TER: around 0.07% per year
- Spread: trade while US markets are open where possible
- Broker and FX costs when buying in dollars
Risks to understand
Currency risk is real: the index is priced in dollars while you measure wealth in euros. A falling dollar drags your return even when the index rises. Hedged share classes exist but carry hedging costs.
Concentration risk is the second one: a correction in a handful of mega-cap technology names moves the whole index.
Ofte stilte spørsmål
Is an S&P 500 ETF the same as a global ETF?
No. An S&P 500 ETF is US-only; an MSCI World ETF covers developed markets globally, of which the US is already around seventy per cent.
Why do European investors pick Irish ETFs?
Irish funds usually pay 15% instead of 30% US withholding tax on dividends thanks to the Ireland-US tax treaty.
Can I buy in euros?
Yes, many Irish ETFs list in euros on Euronext or Xetra. The underlying assets stay in dollars, so currency risk remains.
What does it cost per year?
Roughly 0.07% in ongoing charges plus your broker's transaction costs. Check the current KID for exact figures.
This is information, not investment advice. Past performance says nothing about future returns; you can lose your investment.