Concentrated low cost US equity tracker with strong large company focus and solid historic growth
Report created on May 31, 2024Risk profile
4/7
Diversification profile
2/5
Positions
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CS iShares Core S&P 500 UCITS ETF USD (Acc)
CSPX - IE00B5BMR087 100.00%
This portfolio is as simple as it gets: one accumulating ETF tracking a broad US large‑cap index, with 100% in stocks and no bonds or alternatives. That makes the structure very clean and easy to understand, and the risk level comes almost entirely from one source: the US stock market. Simplicity like this can be powerful because it’s easy to monitor and avoids accidental complexity. The flip side is that there is little protection if that single market has a rough decade. Anyone using a structure like this usually pairs it with cash or bonds elsewhere to balance the ride and match their personal risk level.
Growth
Over roughly ten years, £1,000 grew to about £3,626, giving a compound annual growth rate (CAGR) of 13.69%. CAGR is like your average speed on a long drive, smoothing out bumps to show typical yearly progress. The portfolio slightly lagged the broader US market but beat the global market by a comfortable margin, which is a strong outcome. The worst peak‑to‑trough fall (max drawdown) was about -34%, steeper than the benchmarks’ roughly -25%. That shows returns have been excellent, but with some painful drops along the way. It’s important to remember these numbers are backward‑looking and may not repeat.
Asset classes
- Stocks 100%
Asset allocation is 100% in equities, with no bonds, cash, or alternatives in the mix. Equities are the main long‑term growth engine, so this structure is aimed squarely at capital growth rather than stability or income. Compared with many “balanced” mixes, which often include 30–50% in bonds, this is noticeably more growth‑oriented and sensitive to market swings. The benefit is stronger potential returns over long horizons; the trade‑off is larger drawdowns and a bumpier ride. In practice, many investors using a pure‑equity core combine it with separate cash or bond holdings to reach an overall risk level that still lets them sleep at night.
Sectors
- Technology 34%
- Financials 12%
- Telecommunications 11%
- Consumer Discretionary 10%
- Health Care 9%
- Industrials 8%
- Consumer Staples 5%
- Energy 4%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
Sector exposure is tilted toward technology at about a third of the equity allocation, with the rest spread across financials, telecoms, consumer areas, health care, industrials, and smaller slices in other sectors. This pattern is very close to a typical broad US large‑cap index, which is a good sign that diversification across industries is sensible and in line with global norms. The tech tilt means returns can be more sensitive to interest rates, innovation cycles, and shifts in market sentiment toward growth companies. If tech has a strong period, this helps; during tech‑led selloffs, you’d feel that downside more clearly.
Regions
- North America 99%
Geographically, exposure is almost entirely North America at 99%, so results are closely tied to one region’s economy, currency, and policy environment. This lines up with many US‑focused index strategies, but it’s more concentrated than a typical global portfolio, where North America might be closer to 60%. That concentration has been a plus over the past decade, as US markets have outperformed many others. The risk is that if US equities go through a weaker stretch while other regions do better, this kind of portfolio won’t benefit much. Adding some non‑US exposure elsewhere can smooth outcomes across different global cycles.
Market capitalization
- Mega-cap 47%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
The market‑cap split is dominated by mega‑caps and large‑caps, together over 80% of the portfolio, with modest mid‑cap and minimal small‑cap exposure. Large and mega‑cap companies tend to be more established, often with steadier earnings and better liquidity than smaller firms. That can make them somewhat more resilient in stress periods, but it also reduces the classic “small‑cap premium” potential. This profile is typical for cap‑weighted indexes and is positively aligned with many global benchmarks, offering broad exposure without leaning heavily into higher‑risk small caps. The trade‑off is less potential for explosive growth from smaller, earlier‑stage businesses.
True holdings
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NV NVIDIA Corporation 7.57%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AA Apple Inc 6.57%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
MS Microsoft Corporation 4.92%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AM Amazon.com Inc 3.60%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
GO Alphabet Inc Class A 3.01%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
AV Broadcom Inc 2.68%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
GO Alphabet Inc Class C 2.41%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
ME Meta Platforms Inc. 2.31%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
-
TS Tesla Inc 1.92%
Part of fund(s):- LS 1x Tesla Tracker ETP Securities GBP
- iShares Core S&P 500 UCITS ETF USD (Acc)
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BR Berkshire Hathaway Inc 1.56%
Part of fund(s):- iShares Core S&P 500 UCITS ETF USD (Acc)
- Top 10 total 36.56%
Looking through the ETF’s top holdings, exposure is heavily tilted toward the biggest US names: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, and Tesla together form a meaningful chunk. These appear only via the ETF but still create real concentration at the company level. When the same giants sit at the top of a broad index, their moves can drive a lot of the portfolio’s ups and downs, even though you technically hold hundreds of companies. This is normal for cap‑weighted index products, but it means results will be very tied to how a small group of mega‑caps performs over time.
Factors
Factor exposure shows a high tilt toward value and a very strong tilt toward low volatility, with other factors sitting near neutral. Factors are like underlying “styles” such as value, quality, or momentum that explain how and why investments behave over time. A strong low‑volatility tilt suggests the portfolio tends to hold companies that historically moved less than the market, which can soften drawdowns in rough periods and create a smoother ride. The value tilt means slightly more emphasis on stocks that are cheaper relative to fundamentals. Together, these align well with a more defensive equity style, though they won’t eliminate equity‑market risk.
Risk contribution
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iShares Core S&P 500 UCITS ETF USD (Acc)
Weight: 100.00% 100.0%
Because the entire allocation sits in a single ETF, that one position contributes 100% of the measured portfolio risk. Risk contribution measures how much each holding adds to overall ups and downs, and here there is no diversification across different vehicles. The underlying index does still contain many companies, so stock‑specific risk is reduced, but wrapper‑level risk is fully concentrated. This setup is perfectly fine if the ETF is considered the core building block and is balanced with other investments held elsewhere. Within this slice, there’s no way to adjust risk by trimming or adding other funds without changing the basic one‑ETF approach.
Ongoing product costs
- iShares Core S&P 500 UCITS ETF USD (Acc) 0.12%
- Weighted costs total (per year) 0.12%
The ongoing cost (TER) of 0.12% is impressively low for a diversified equity exposure. TER is the annual fee charged by the fund, taken directly from its assets, a bit like a small management toll. Keeping fees down is one of the few things investors can fully control, and over decades, even a 0.5–1.0% difference can translate into a surprisingly large gap in final wealth. This cost level aligns very well with best practices for core index exposure and strongly supports long‑term performance. From a fee perspective, there’s little to improve here without sacrificing simplicity or liquidity.
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