IE00B3YCGJ38 | Invesco S&P 500 UCITS ETF
One of the key benefits of the Invesco S&P 500 UCITS ETF is the low expense ratio, which is just 0.05% per annum. This makes it a cost-effective way to invest in a broad range of US stocks. Additionally, the dividends earned by the fund are automatically reinvested, allowing investors to benefit from compounding returns over time.
To replicate the performance of the S&P 500, the Invesco ETF uses a synthetic replication strategy with a swap. This approach allows the fund to closely mirror the underlying index while minimizing transaction costs and tracking error.
As one of the largest ETFs in Europe, the Invesco S&P 500 UCITS ETF has over 10,989 million Euros in assets under management. The fund has been in operation for more than five years and is domiciled in Ireland.
Investors interested in exploring similar ETFs can consider the iShares Core S&P 500 UCITS ETF, the Vanguard S&P 500 UCITS ETF, or the SPDR S&P 500 UCITS ETF. These funds offer similar exposure to the S&P 500 index, with varying expense ratios and replication strategies. For those seeking a more detailed analysis of the US market, there are investment guides available for the S&P 500 and Nasdaq 100 ETFs.
ISIN
IE00B3YCGJ38
Asset class
Equity
Trading currency
USD
Replication
Synthetic (Unfunded swap)
Distribution policy
Accumulating
Domicile
Ireland
Ticker
SPXS.LSE
One year low/high
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Learn moreSectors
| Technology | 30.69% |
|---|---|
| Consumer Discretionary | 15.61% |
| Financials | 12.33% |
| Communication Services | 12.11% |
| Industrials | 10.05% |
| Health Care | 8.36% |
| Consumer Staples | 4.11% |
| Basic Materials | 2.52% |
| Utilities | 2.19% |
| Energy | 1.86% |
| Real Estate | 0.16% |
Top holdings
| Amazon.com Inc | 6.27% |
|---|---|
| Microsoft Corp | 5.55% |
| Alphabet Inc-Cl A | 4.92% |
| Apple Inc | 4.10% |
| Berkshire Hathaway Inc-Cl B | 3.93% |
| Nvidia Corp | 3.72% |
| Meta Platforms Inc-Class A | 2.79% |
| Pdd Holdings Inc | 2.48% |
| Adobe Inc | 2.40% |
| Siemens Ag-Reg | 1.61% |
| Alphabet Inc-Cl C | 1.58% |
| ASML Holding NV ADR | 1.51% |
| Intuitive Surgical Inc | 1.46% |
| Oracle Corp | 1.12% |
| Atlas Copco Ab-A Shs | 1.03% |
| Netflix Inc | 1.02% |
| Micron Technology Inc | 0.99% |
| Applied Materials Inc | 0.93% |
| Rwe Ag | 0.86% |
| Muenchener Rueckver Ag-Reg | 0.86% |
| Advanced Micro Devices | 0.86% |
| SAP SE ADR | 0.85% |
| Dhl Group | 0.85% |
| Evolution Ab | 0.84% |
| Asm International Nv | 0.84% |
Geographic exposure
Countries
| United States | 75.22% |
|---|---|
| United Kingdom | 0.26% |
| Switzerland | 1.99% |
| Sweden | 4.37% |
| Norway | 0.77% |
| Netherlands | 3.03% |
| Luxembourg | 0.27% |
| Israel | 1.25% |
| Ireland | 0.11% |
| India | 0.22% |
| Germany | 8.57% |
| Finland | 0.21% |
| Denmark | 0.32% |
| China | 2.48% |
| Brazil | 0.66% |
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What are ETFs?
An ETF (Exchange Traded Fund) is an investment fund that tracks the performance of a market index or a basket of assets. ETFs are publicly traded and can be bought and sold during normal trading hours like common stock.
ETFs have many advantages over other forms of investment, such as the possibility of obtaining portfolio diversification in a simple and convenient way, the low cost of management and the transparency of their activities. Furthermore, ETFs are often used as risk hedging instruments or to track specific markets or sectors.
In summary, ETFs are an easy and convenient way to invest in a variety of assets, such as stocks, bonds, commodities and more, without having to purchase individual investment items.
What is the TER?
The TER (Total Expense Ratio) is a measure of the cost of running a fund or ETF. This is a percentage that represents the portion of the fund's income that is used to cover management and other operating expenses. For example, if a fund has a TER of 2%, this means that 2% of the fund's income will be deducted each year to cover management and other operating expenses.
The TER is calculated by dividing the total amount of fund expenses by the fund's net assets, multiplied by 100. The fund's net assets are the total amount of the fund's assets, less liabilities.
The TER is an important measure to consider when evaluating the different funds available in the market, as it can have a significant impact on a fund's returns over the long term. For example, a fund with a high TER will have more of its returns going towards management fees, which could reduce net returns for investors. Consequently, it is important to compare the TER of different funds to evaluate which might be the most appropriate choice based on your investment needs.
What does the volatility of an ETF represent?
The volatility of an ETF represents the amount of fluctuations or changes that the price of an ETF can experience over a given period of time. In other words, volatility measures the variability of an ETF's price over time.
ETFs that invest in more stable assets, such as government bonds or fixed income securities, tend to have lower volatility than ETFs that invest in riskier assets, such as stocks. However, the volatility of an ETF can also be influenced by other factors, such as the performance of financial markets, general economic conditions and monetary policies.
Volatility can be a useful indicator for investors, as it can give an idea of the potential risk associated with an ETF. However, it's important to note that volatility isn't the only factor to consider when evaluating an ETF. Investors should also consider other factors, such as the investment objective, risk profile and historical performance of the ETF.
How does an accumulation ETF work?
Accumulating ETFs are a type of ETF that do not distribute the dividends and interest earned on the stocks they invest in to investors. Instead, this income is reinvested in the fund, helping to increase the value of the ETF shares. Accumulating ETFs are often used by investors looking to build their wealth over the long term, as reinvesting income can contribute to more growth in the value of the shares over time.
How do accumulation ETFs work in practice? Let's imagine that an accumulation ETF invests in stocks that pay a dividend of $1 for each share held. Instead of paying out these dividends to investors, the fund will reinvest this money by buying new shares of the same ETF. This will increase the number of units owned by the investor and, consequently, also the value of the units.
It is important to note that accumulation ETFs can also generate management fees, like most ETFs. These fees are typically charged to cover costs associated with managing the fund, such as buying and selling securities and paying fund administrators.
Accumulation ETFs may be a good choice for investors who are looking for an easy and affordable way to invest in a broad basket of stocks and who want to use income reinvestment to increase the value of their portfolio over the long term. However, it is important to consider the possible costs associated with accumulation ETFs and whether they are suitable for your investment needs.
What is a stock ETF?
An equity ETF (Exchange Traded Fund) is a fund that invests in a number of shares of publicly traded companies. Equity ETFs are flexible and convenient investment instruments that allow investors to buy a basket of stocks with a single transaction. In this way, investors can easily diversify their investment portfolio without having to buy individual shares or manage their positions directly.
Equity ETFs are very popular investment instruments because they offer a number of advantages over traditional mutual funds. For example, equity ETFs are usually cheaper from a fee perspective, as they have lower management fees. Additionally, equity ETFs are easily tradable on exchanges, meaning investors can buy and sell their positions at any time during trading hours.
There are numerous equity ETFs available on the market, covering a wide range of industries and geographic regions. For example, there are equity ETFs that invest in technology companies, consumer companies, financial companies, and commodity companies, just to name a few. Investors can choose to invest in equity ETFs that track a benchmark market index, such as the S&P 500 or the Dow Jones Industrial Average, or in equity ETFs that track a specific sector or regional index.
What are synthetically replicated ETFs?
Synthetic replication ETFs (Exchange Traded Funds) are funds that replicate the performance of an index or a basket of securities, using a synthetic replication technique. This means that ETFs do not buy the underlying assets directly, as is the case with most ETFs, but use financial derivative instruments, such as futures contracts or options, to replicate the performance of the underlying basket of securities.
Synthetically replicated ETFs are often used to invest in markets where it is difficult or expensive to buy the underlying assets directly, such as emerging markets or bond markets. However, this type of ETF has some characteristics that could be considered disadvantages compared to traditional ETFs. For example, synthetically replicated ETFs are subject to increased counterparty risk, as they are dependent on the credit risk of the parties with whom they have derivative contracts. Furthermore, they may exhibit discrepancies with respect to the performance of the index or the basket of underlying securities, due to changes in the prices of the derivatives used to track the index.