Endowus has selected the Fund because:

Product

Provides investors with SGD-denominated passive and low cost exposure to the US large cap equity market.
Tracks the S&P 500 index with very low tracking error.

Team/Firm

Part of Blackrock’s iShares suite, a recognised platform managing more than USD2.6 trillion in assets.

Performance

Fund’s performance since inception has only differed from the Index by essentially the Fund’s fees, which has been below 0.2% annually.

Process

Cost

Access to D share class with no trailer fees to achieve the lowest possible cost.

How does the fund fit in my portfolio?

Investors looking to gain a passive and cost-effective exposure specifically to the US large cap equity segment can consider the Fund as a satellite position in a more broadly diversified portfolio. The fund tracks the S&P 500 Index which includes the 500 largest companies in the US by market capitalization. In the last few years, the index had developed a significant exposure to the US Information Technology sector.
Investors should be aware that the fund focuses on a single country ie. US, and that typically comes with country specific risks.

Updated as of 2022/11/16