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The S&P 500 recently (9 October) touched an all-time high of 7,844 points. Large-cap technology and AI-related infrastructure stocks have led the rally, and analysis from FactSet Research Systems suggests it could reach 9,275 by September 2027.
For UK investors, that raises an obvious question: is now a good time to consider S&P 500 exposure through London-listed funds?
A record high doesn’t automatically mean a bad entry point. But it does mean the choice of fund matters more than usual.
Straightforward S&P 500 options
The simplest route is a low-cost Exchange-Traded Fund (ETF) that tracks the S&P 500. These funds are listed in London, can usually be held in an ISA or Self-Invested Personal Pension (SIPP,) and give exposure to 500 large US companies.
| Ticker | Fund | Income treatment | Why consider it |
|---|---|---|---|
| CSPX | iShares Core S&P 500 ETF | Accumulating | Broad index exposure; income reinvested |
| VUSA | Vanguard S&P 500 ETF | Distributing | Simple, low-cost exposure with income paid out |
| SPY5 | SPDR S&P 500 ETF | Accumulating | Low-cost core holding for long-term investors |
An accumulating fund keeps dividends inside the fund and reinvests them. A distributing fund pays income to investors, which can suit someone seeking cash flow.
These funds are sensible core options. But the recent rally has been concentrated in technology, so I’m also interested in a more focused way to access that theme.
A closer look at a tech ETF
The iShares S&P 500 Technology Sector ETF (LSE:IUIT) targets US information-technology companies. Its net asset value has returned 29.87% year to date, and it had net assets of $20.65bn as of 9 October. The ongoing charge is 0.15% a year.
The fund holds 75 stocks. Its largest positions include Nvidia, Apple, Microsoft, Broadcom and Micron. That gives investors exposure to major beneficiaries of AI spending, cloud computing and semiconductor demand.
- Fund size: $20.65bn.
- Number of holdings: 75.
- NAV total return, year to date: 29.87%.
- Price-to-book (P/B) ratio: 14.85.
- Total expense ratio: 0.15%.
Sector exposure is heavily tilted towards semiconductors, at 41.96%. Technology hardware accounts for 22.07%, while systems software makes up 18.92%.
That concentration is both the attraction and the risk. This isn’t a diversified S&P 500 fund – it’s effectively a bet that technology earnings (especially chip-related profits) keep growing.
It also reportedly underperformed its benchmark for the first time in 2025, highlighting its sensitivity to the tech sector.
What happens next?
Analysts are turning more bullish on the S&P 500, and technology remains the main driver. Yet timing matters. Major US banks, including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo, begin reporting Q3 results this week.
Plus, US inflation data’s due later today (14 October). If inflation comes in hotter than expected and Treasury yields rise, growth-heavy technology stocks could come under pressure.
Therefore, it makes sense to explore a broad S&P 500 fund as a foundation. Then, based on risk tolerance, consider a more sector-focused fund like iShares S&P 500 Technology.
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Mark Hartley owns shares in iShares S&P 500 Technology Sector ETF.
