BlackRock MyMap 6 - overlapping funds

older_and_no_wiser

I'm considering investing in the MyMap 6 multi-asset fund from BlackRock. Overall this looks a good fit in my portfolio. One thing I noticed though is how a few of the funds it invests in seem to overlap somewhat. This is their list of top holdings from the latest (May 2021) factsheet:

TOP HOLDINGS (%)

ISHARES MSCI USA ESG ENHANCE USDHA 17.74

ISHRS US EQ IDX FD (UK) X ACC 13.84

ISHRS NRTH AM EQ IDX FD (UK) X ACC 12.89

ISHARES MSCI EMU ESG ENHANCE EURHA 11.89

ISHRS 100 UK EQ IDX FD (UK) X ACC 9.95

ISH $ TSY BND 20+YR UCITS GBP DIST 9.93

ISHARES MSCI EM ESG ENHANCED USDHA 9.05

ISHRS IDX LK GLT IDX FD (UK) X ACC 3.97

ISHARES MSCI JAPAN ESG ENHAN USDHA 3.94

ISHARES PHYSICAL GOLD ETC 2.92

Total of Portfolio 96.12

Looking at the top three - which represent over 43% of the fund - they all seem to be US based equity funds with the usual large cap companies in there. Two are based on the FTSE US index another is a large cap US index which "screens out controversial business areas" and are more ESG focused. Looking at the top companies held in each fund, they are the same or very similar.

Is this anything to cause concern - or am I over analysing? ;-)  I guess the fund would be rebalanced at different points in the future should the markets and conditions change.

El_Torro

I can't really comment on why BlackRock do it this way. All I can say is that what's important is the composition of the fund as a whole. If it invests in funds which overlap it's not that big a deal, as long as what you're getting overall is what it says on the tin.

Type_45

Interesting that it invests in gold.  That's the same gold ETC which I invest in (outside of the funds I invest in).

I am thinking of also acquiring some Silver ETC.

older_and_no_wiser

Yes @Type_45 - that's one of the reasons it caught my eye. Not a massive deal but nice for a bit of diversity and shows the company are thinking a bit out of the box.