The iShares S&P 500 fund has surpassed USD10 billion in assets under management in Europe, ten years after its launch.
Russ Koesterich (pictured), Chief Investment Strategist for iShares, says: “The US is improving faster than other parts of the world. So far this year, economic data from the US has been better than expected, confirming that the world’s largest economy has experienced a strong first quarter. While real wage growth remains anemic, there has been a gradual healing of the US labour market. This is related to a slow but consistent growth in corporate earnings and over $1 trillion in cash on balance sheets.
“Looking further ahead, we are keeping a close watch on rising oil prices, which are likely to be a drag on the economy when the summer ‘driving season’ commences. Equally, as we approach the Democratic and Republican National conventions over the summer, investors will start paying closer attention to the upcoming presidential election, and the effect future administrations could have on the market.”
David Gardner, Head of iShares EMEA Sales, says: “As investors watch US events closely, those with a tactical interest in US equities will be searching for the best product to meet their needs. As the largest European ETF with exposure to the US equity market, the iShares S&P 500 fund may be of benefit to some investors. The fund has a high secondary market liquidity which translates into narrow spreads and low trading costs, which in turn help to reduce the total cost of ownership of the fund. Another attractive feature is the tight tracking of the fund; on an annualised basis, the iShares S&P 500 has less than one basis point tracking difference after costs.”
The iShares S&P 500 is currently the third largest ETF in Europe and the most traded European ETF with exposure to the US equity market, according to the latest Q1 ETP Landscape report from BlackRock. The fund’s consistent liquidity and tight bid-ask spreads allow investors to express their views on US stock market either for ‘buy and hold’ or tactical purposes. The ETF is listed across five exchanges (the London Stock Exchange, Deutsche Borse, Borsa Italiana, Euronext and the SIX Swiss Exchange) and in U.S. Dollar, Sterling and Euro trading lines. It is also available in an accumulating version, where dividends are automatically reinvested into the fund, and in Sterling and Euro hedged forms.
