ETF v praxi
SXR8 — iShares Core S&P 500 EUR: a breakdown of Europe's most popular ETF
Key takeaways
- SXR8 tracks the S&P 500 — 500 of the largest US companies — with a TER of around 0.07% per year.
- The fund is accumulating with physical replication and Irish domicile — an ideal combination for long-term investors.
- The technology sector makes up approximately a third of the index — a concentration factor worth keeping in mind.
- SXR8 is one of the most liquid ETFs in Europe; spreads are minimal even at larger volumes.
- For full global diversification consider supplementing with an All World ETF — the US represents ~70% of the global market, and SXR8 holds nothing else.
What is SXR8 and why every investor knows it
SXR8 (iShares Core S&P 500 UCITS ETF USD Acc) replicates the S&P 500 — 500 of the largest publicly traded US companies. It is one of the most liquid and widely held ETFs available to European investors. What the S&P 500 is and why investors love it so much is explained in what is the S&P 500.
TER and technical parameters
SXR8 is at the top in terms of cost efficiency — the TER is around 0.07% per year. Always verify the current figure on justETF. The fund is accumulating (Acc), automatically reinvesting dividends without the need to declare them every year. The domicile is Ireland — key for the favourable taxation of US dividends, as described in why UCITS ETFs with Irish domicile.
What the fund physically holds
SXR8 physically replicates the S&P 500 — it holds actual shares, not derivatives. Among the largest positions you will find Apple, Microsoft, NVIDIA, Amazon and Alphabet. The technology sector makes up approximately a third of the index, which is important to bear in mind when assessing diversification.
Advantages of SXR8 over alternatives
- Extremely low TER: 0.07% is at the very top of cost efficiency.
- High liquidity: daily trading volumes in the billions of euros ensure tight spreads.
- Physical replication: transparent, without counterparty risk from derivatives.
- Accumulation: no need to deal with dividend taxes every year.
Limitations: what SXR8 is not
The S&P 500 only covers the US. If you want genuine global diversification, supplement or replace it with an All World ETF — the comparison is made in All World vs. S&P 500. SXR8 is an excellent portfolio foundation, but geo-concentration in the US is a real risk that a conscious investor should not forget to account for. Even so: for an investor seeking a simple, low-cost and transparent solution, SXR8 is one of the best choices on the market.
FAQ
What is the difference between SXR8 and CSPX?
Both track the S&P 500 and are from iShares. The main difference is the listing currency and primary trading exchange. Performance over time is practically identical.
How does SXR8 behave when the dollar weakens?
The fund holds US assets in USD. If the dollar weakens against the euro, the fund's value in euros falls even when the index is flat — the fund is not hedged.
Is SXR8 suitable as the only ETF in a portfolio?
For simple portfolios yes — it is an excellent choice. If you want broader geographical diversification, supplement or replace it with an All World ETF.