Investing in index funds is an attractive option for traders who don’t want to spend much time doing analysis or frequent trading. The Blackrock S&P 500 Index Fund is one of the most popular choices for investors. This type of investment allows individuals to make money from investments in a completely passive way.
However, choosing a fund involves research on that asset to learn the potentiality. This article contains complete research on the Blackrock S&P 500 index fund, including performance info, cost, fees, fund history, volatility info, return info, etc. Completing this article will help you make investment decisions at BSPIX.
What is the Blackrock S&P 500 Index Fund?
The Blackrock S&P 500 index fund or BSPIX belongs to the equity asset class. The investment of BSPIX seeks to provide investment results that correspond to publicly traded common stocks Standard and poor 500 indexes or S&P 500 index total return performance. This fund operates under Morningstar’s large blend category and S&P 500 index funds category for Lipper classification. The S&P 500 index is the benchmark index for BSPIX. The distribution frequency of this fund is quarterly, and it is open to new investors. It invests 90% of its assets in securities of the S&P 500 index.
The top ten holdings of this fund include famous companies such as Tesla, Facebook, Amazon, Microsoft, Apple, etc. Most of the ultimate holding companies operate around the globe.
This fund has holdings in several sectors: equity holdings, real estate, financial services, healthcare, energy, technology, etc.
History of fund
The inception date of the fund BSPIX is 9 Apr 2013. It belongs to the Blackrock fund family. Under the large blend category, this fund has a net asset of $31.97B. The lead manager of the Blackrock S&P 500 index fund has been Jennifer Hsui since 7 Apr 2016. Before that, in 2007, Ms. Hsui was a senior portfolio manager in BlackRock Investment Management LLC.
The number of holdings of this fund is 506. At the time of writing, the index fund is floating near $521.35.
Ranking info helps investors to get a meaningful comparison between several investment assets. The categories make it easier to sort out potentiality, potential risk, develop well-diversified portfolios and identify the top funds and asset classes.
According to Morningstar, this fund belongs to the silver category and deserves overall a four-star rating. Meanwhile, it has a three-star rating for three years out of 1254 funds and a four-star rating for a five-year duration out of 1094 funds.
On the other hand, another ranking team enlisted this fund as a top investment asset class depending on total return, consistent return, preservation, and tax efficiency. The fund got a four-star in comparison to expenses with other funds.
Trailing total returns
When you decide to invest in some asset, looking at return information works as a motivation. As of 31 Aug 2021, this fund has a 30.99% annual return, 17.98% for a three-year duration. Meanwhile, a 17.91% return for five years.
The chart above shows much information besides different time returns, such as benchmark percentage, Morningstar rankings, Lipper category average percentage, etc., for different periods.
For better observation, look at the cumulative return chart of BSPIX for different periods, such as YTD, one month, three months, yearly, three-year, five-year, etc. We are attaching another chart below that includes investment return, category, quartile rank, etc., info for the past ten years.
This info indicates the potentiality for specific investments. This fund had six upward years and one downward year in the past seven years.
The year-to-date return is 8.84% of the fund BSPIX. Now check the return vs. benchmark comparison chart below for different periods to better understand the performance info.
This fund has been operating excellently since its inception as it has grown by more than four hundred percent. Now we are attaching a hypothetical chart of BSPIX below having a 10,000 investment.
The performance of this fund has been attractive, but remember, past performance doesn’t guarantee any profit in the future.
Fees and costs
This fund has a 0.10% expense ratio. The expense ratio was 0.110% back in 2017-2018.
Additionally, this fund requires a $2,000,000 initial investment. However, the amount is minimal, but investors have to pay other fees such as management fees, 3-years tax cost, etc.
The initial investment amount is quite a figure for this fund that average investors who like frequent transactions may lose interest in.
The Blackrock S&P 500 index fund tracks the performance of stocks. The volatile stock market responds to various microeconomic and macroeconomic factors, such as currency prices, interest rates, pandemics, political influences, etc.
So BSPIX also involves risk, but investing in these types of funds involves fewer risks than other financial assets, such as currencies, commodities, cryptocurrencies, stocks, etc.
For a better understanding, look at the chart of risk and volatility measurement info.
The fund BSPIX has a beta value of 1.0. Meanwhile, the standard deviation is 18.45, and the Sharpe ratio is 0.91.
Look at the chart above that contains additional market volatility measurement info, such as capture ratios, drawdown, maximum drawdown duration, etc.
Blackrock S&P 500 Index Fund 2022 forecast
This fund fell from near $400 to $274 at the beginning of the recent Covid-19 pandemic in March 2020. BSPIX has recovered from the pandemic drawdown in August 2020 and has gradually gained since then. Now it’s been floating near $521.35.
By observing every other data such as risk factors, performance measurement, historical data volatility info, etc., we recon BSPIX as a potential investment asset for the following year 2022. We make this forecast by our research on this fund, but remember this fund can decline if any unexpected event occurs as the index grows by depending on many affecting factors.
Finally, you got a primary level of observation on BSPIX; now, you know every essential factor for researching any index fund. Before investing, we suggest doing additional research and considering other factors such as time duration, region, return expectations, etc.