iShares Core S&P 500 ETF USD Acc (GBP) | CSP1 |
Morningstar's Take
|05/02/2024by Monika Calay
| IShares Core S&P 500 ETF tracks the S&P 500, a market-cap-weighted U.S. large-cap equity index. The fund's low fee and a soundly constructed and reasonably representative portfolio leave the fund well-positioned to continue its long streak of producing superior risk-adjusted returns relative to its peers over the long haul. The S&P 500 is a broadly diversified, representative large-cap index that captures 80% of the U.S. equity market. By including only stocks that have had positive earnings for a year, the S&P 500 has a slight quality tilt. Constituents are determined by an index committee, which gives the index a greater degree of flexibility than its peers that follow more-mechanical rules. Market-cap weighting pulls the portfolio toward the largest US stocks and accurately reflects the composition of the market. The fund’s sector weightings are largely in line with the large-cap blend Morningstar Category average, but it tends to have a larger market-cap orientation. The U.S. equity market is highly liquid and efficient, meaning that material information is quickly incorporated into stock prices. This limits the room for active managers to add meaningful value. This makes broadly diversified, low-cost passive strategies the default option for investors seeking this market exposure. At ongoing charges of 0.07%, the USD accumulating and distributing share classes are priced attractively versus active peers. In summary, the fund offers passive exposure to a broad and diversified index of U.S. equities in a category where index strategies have built a strong investment case over active peers. |
Large- to mid-cap exposure to U.S. equities at an attractive fee, but cheaper alternatives exist.To find out how Morningstar rates a fund click here.
| Morningstar Pillars | |
| People | Above Average |
| Parent | Above Average |
| Process | High |
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
