Cheapest Way To Invest In The S&P500 In The UK & EU
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- Опубликовано: 20 июн 2024
- I often talk about investing in the S&P 500, but what is the cheapest way to do this investing - which ETF is going to offer the best value and which platform should you use?
There are a lot of things to consider - the ETF charges, platform annual fees, transaction fees and FX fees, availability of the ETFs and spread on the ETF price.
So given all that it might seem somewhat complicated to choose the best option and it could take some time so I thought I'd do the research for you.
The answer is somewhat simple - if you choose to invest in the S&P 500 ETF, the cheapest option after considering everything is to invest in VUSA through either Lightyear or Trading 212 where you will ONLY pay the annual ETF fee of 0.07% and a very small spread.
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You need to take down a lot of videos then
@@matchedbettingfaqs7727 Oh we're not taking the videos down. Don't you worry about that. Just their affiliate links.
@@SashaYanshin I still like Freetrade, does this mean that you have changed your mind on it and don't like it anymore
@Matchedbettingfaqs I think the platform is alright and the ISA is the best available for many people. However their actions after receiving one fair bit of criticism say a lot about their morals and ethics - I will not work with again.
@@SashaYanshin fair enough. Your Channel seems pretty honest though so I hope you give measured guidance and thoughts on how they treat customers as a whole given that's who you talk to but I'm sure you will and you have to be honest if you had that experience etc. I have stake also. Can't do 212 obviously.
Had to pause after 49 seconds to like and comment - THANK YOU for getting straight to the point. So many other people would waffle on for 5-10 mins before saying what their recommendation would be. Now I can spend the rest of the video taking in your points and reasoning behind it
Thanks James - I sometimes suffer from that myself but usually in a video where I really have to explain the point or it won't make any sense otherwise but at least my videos are relatively short so in any case I am going to be on the point quick enough anyway :)
Couldn't agree more
Fair play Sasha! Great detail and work went into this 😊
Hello Sasha. I'm located in Hungary. Which platform do you recommend to start investing in index funds such as s&p 500.
To be frank, I don’t know much at all about what apps are available in Hungary. I know out of the ones I use and like, Etoro and Interactive Brokers both accept customers in Hungary (I think) but I don’t know who else is available. 👍
Mate this was quality, very informative, subscribed!👍🏼
Thanks!
Thanks for explaining this so clearly Sasha, it's much appreciated for my strategy of buying liquid stocks I can buy and sell easily when needed rather than keep cash in the bank.
Thank you Phil!
Question: Would you ever consider calculating the cost differences of using trading121 vs Vanguard with a theoretical amount to see how drastic the financial differences are? For example, £100 via 121 trading and £100 via Vanguard? I'd love to see how that pans out with your expertise, and it'd help me to know more than just the possible percentages.
Thank you, found this in-depth explanation of Vanguard ETF’s very useful as I’m about to invest in one myself. New to investing and have learned so much from your channel. 👍🏽
How’s it going?
I was actually looking into this myself and decided on the ishares accumulating etf because it reinvested dividends for me but I didn't even consider the spread costs and although very little they could add up over the years so I might go with vusa so thank you for this the timing was spot on!
Cheers Darren - I think most people looking at it in detail conclude that the distributing ones are better and they probably WILL BE in the future as the size and traded volumes increase but right now I'm good with VUSA.
Got to be one of the best on yt for advice. Love this channel
Thanks!
Found your channel 2 days ago and today I binged watched like 10 of your videos. I learned so much, thank you Sasha!
Thank you! Glad they are useful!
Excellent video, learning a lot from your channel thanks for sharing your knowledge
Thanks Richard!
Finally! Investing from Europe is so constrained. Most times, it about knowing where and how to get started on. Also considering the recent global economic challenge right now especially with the decline of the dollar and euro, would it be considered wise to keep holding?
Be fearful when others are greedy. Be greedy when others are fearful.
Warren Buffett
Our constant need to accomplish things on our own has put us in a perilous financial position. Notwithstanding the present economic crisis, I remain a strong bull on the euro. Knowing when to enter and exit the market, having a fundamental understanding of how the market functions, and delegating are all essential for allowing one to study at their own pace. Technical and initial fundamentals always have more to them. I have been able to generate up to $50k in return on a $100k investment by following Yvonne Annette Lively's instructions while learning at my own pace in less than 3 months.
@@maryalchester That’s amazing! I’ve been stuck on red for a while now. All we need do is look up Yvonne Anette Lively huh?
@@maryalchester Yvonne annette lively?
Could we search her up?
Thanks Sasha. I'm coming to this video late, but found it really valuable. Also fairly new to investing. Just subscribed :) Buy my estimation the S&P 500 has declined by circa 7.3% over the past days including today (15/06 @15:00), however the VUSA appears to be down circa 4.5% for the same period. Is this due to the dollar strengthening against the pound? Is there a way to reduce the delta so that i can buy the full "S&P 500 dip"? Thanks
I am in the same dilemma, I want to take advantage of the dip, but VUSA isn't dipping enough. How about a hedged s&p 500 fund instead? Any thoughts
@@MrJeeves007 hi, I’ve gone for hedged. GSPx for eg on S&P or eqgb on Nasdaq 100
Thank you ! This is very helpful. Can you do another video about investing in NASDAQ 100 from the uk as well please ?? 🙏
What about it? You can just use something like a dedicated ETF - these are available from pretty much every broker.
great video, ive been thinking about vusa and its accumulating cousin for a while
Thank you!
Great video…..succinctly delivered. I am not into ETFs because I don’t really understand them. Accumulating index funds do it for me. I have been mulling switching from the developed world ex Uk to the US equity index fund for the same reasons you alluded to, regarding the US economy vis a vis the global market.
@loutol Hi, how is US equity index fund working out for you? I've also opt in for US equity index fund. S&P 500 is a ETF and ETF didn't make any sense to me but most videos out there quote that S&P is index fund which is wrong i believe.
@@nawal7721 Hi. So far so good. The S&P 500 makes up about 75% of the US equity index fund while the remaining 25% is made up of medium, small and micro sized US company. The index captures the entire US market and reinvests the dividends for you. I am pleased with it and intend to hold it for the long term.
Thanks for another great video Sasha. I’m now getting into VUSA in my ISA for this year. I use ii anyway so effectively no extra platform fees for the ISA. £10/mth for ii is a good deal above a certain portfolio size. If you have any advice on the selection of ETFs for global markets or all US then I’d be interested but I’ll trawl down your old videos to see if there’s anything there. Have a good day!
Thanks Gordon!
I personally don't really go down the route of big global ETFs and am mostly invested in the US and there is a very good reason for that.
We are going through a massive new wave of global industry where most of the highest growing and influential tech and other companies that operate globally are operating from the US.
That's where the talent sits, the money sits, the tech sits and these guys are running the show, snuffing out competition in other countries to a degree.
So I pretty much feel I have a global investing portfolio when I have money in companies like Google and Apple and I'm personally pretty happy with that.
@@SashaYanshin Thanks for the reply Sasha. I added in INRG and then learnt about how liquidity can affect the ETF price but it’ll sort itself out in time, I’m sure. I’m going to get a whole US market ETF as I’m sure there’ll be plenty growth outside the S&P 500 plus I’m keen to get in on more “green economy” ETFs - so plenty to think about. Looking forward to your next video.
👍 and subscribed as you researched this thoroughly.
Thank you! Appreciate it!
Great video very informative 👍🏻
Thanks Ian!
Great video. Very relevant topic.
Thank you Umair! :)
Hi could you do a more up to date video outlining the current cheapest S&P 500 etf? That would be really useful, thankyou
@5.40 dude, VUAG is more successful than VUSA. You can now do a 5 year comparison on both
Hi Sasha! Thanks for the info! Can the brokers you recommend be used in both UK&EU? I stay in the UK but might move to Greece next year. Thank you!
If I buy and hold and put a lump sum, I would prefer VUAG since large spread doesn't make much difference if I am not trading.
Hi Sasha, as someone looking to invest a few thousand initially and within the hundreds per month, would you recommend a general account or a stocks and shares ISA on Vanguard?
Hello. Thanks for all the info! Can you please explain why it's 'more expensive' to buy the VOO (US based) ETF? Or is that just concerning UK investers due to the tax benifits you have? Have you researched anything about Tastyworks? It seems it's possible for Europeans to buy the US domiciled ETFS through that, and there are no annual fees.
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Great content
Thank you!
Useful info thanks
Thanks Kevin!
Hey Sasha, do you have an idea about the HSPX? It seems like a pretty consistent ETF and it's London-based (so no fees?). I'd love to hear your opinions!
It's just HSBC's version of the S&P 500 ETF - higher fee at 0.09% and I would assume higher spread too but both somewhat marginal.
This video is incredibly helpful! Thanks so much, now we’re 8 months on which platform would you recommend the most for buying the VUSA ETF? Still Freetrade and trading 212 or not?
This would be a good to know! I have opened an account directly with vanguard for the s n p 500, I do have trading 212 but I decided to make it a standing order direct.
Great video but I beg to differ on VUSA dominating VUAG. I believe whether VUSA dominates VUAG or the other way around, given spreads and dividend yield and forex, depends on your holding time. For example, with the forex of HL of 1% (!), with a spread for VUAG of 8 basis points (bp), VUSA of 3bp, and a dividend yield of 1.12%, the extra cost of getting in and out of VUAG is 5bp, which is less than what you would be paying for forex cost at HL with a holding time of only 5 years, a minimum to get into shares. If you invest for 10 years, you save half the cost. And so on. Alternatively, AJBell charges 0.5% for forex, but has a maintenance fee.
curious about your opinion whenever to go for the S&P 500 dividend aristocrats vs S&P 500? ( on freetrade as no one getting a trading 212 account any time soon haha) thank you ^^ love content been watching for few months !!
I am actually not a huge fan of most subset ETFs of the S&P 500. I hold some Nasdaq 100 but that’s about it.
Is trading 212/freetrade safe to invest and forget about it for long term investors, i.e 10 years +?
You touched on it briefly however it's actually quite a big point - when you buy VUSA you are buying it in £ which Vanguard then converts to $. If the value of the £ increases against the $ while you are invested in VUSA, the value of your investment will go down. Example: if S&P500 doesn't move over 1 year (0% gain) but the £ increases in value against the $, you will have a negative % over that 1 year. This can be avoided by investing in hedged ETFs - completely removing the currency risk.
Hedged as in... investing in UK companies?
This exact risk exists for investing in any US or non-£ company in the same way.
That's a choice for everyone. I personally don't subscribe to hedging the currency risk because the net growth trumps the fluctuation for me but I guess this is one where everyone needs to make their calls.
@@SashaYanshin There are S&P500 ETFs that are hedged against GBP - so whether the value of GBP against USD increases or decrease no longer matters. If you look at VUSA over the last 1 year vs. GSPX which iShares S&P500 hedged ETF you will see that I mean (+29% vs. +43%). Profits from VUSA have been eroded over this time period because GBP has been increasing in value against USD.
@@Duncan94 Yeah - the issue is that hedging works both ways and you can easily lose out because of currency fluctuations as well as gain from the hedge.
That and the typically higher fund fees, higher spreads and less frequent rebalancing so I generally don’t use them.
Sure - if you are certain the currency is going to swing one way maybe you’ll go for it but I am not in that camp.
Hi Sasha, I’m your follower and subscriber from the middle east. I was wondering if you have any thoughts for CSPX i have most of my money there. Is it a good etf for foreigners ? I’m really confused
Although I chose the North American etf instead of the S&P 500, this is really helpful Sasha. Especially the bit on spread. I never factored it into my decision-making before but will do going forward.
Also Trading 212 is driving me nuts with the wait. But still holding out hopes for a miracle in the next two weeks.
You could just buy on Vanguards platform in the meanwhile and transfer when you’re ready and Trading212 is more stable. Remember time in the market is worth more than the money itself, don’t wait too long!
I agree - who knows what's going to happen. They might introduce yet another fee when they reopen to new accounts or they could pause for longer. I would pick the best platform available and then make choices from there. If you only want to invest in the S&P 500 for example, then Vanguard is probably the next cheapest option if you go for an ISA or Freetrade if you go for a regular investing account.
Hi Sasha, are these low trading volumes of vusa something to worry about (Compared to spy and voo)? Could that mean the vusa etf has a risk of closing?
Hey, would you recommend using etoro for the SP 500 index fund?
Great video! Question - *Why isn't Trading 212 allowing new accounts? And when do you suppose they will open up again?*
You should watch some of my videos about Trading 212 that I made recently! There is no official timeline but I think that new accounts will open up as soon as the new tax year starts personally - but that is just a random guess.
@@SashaYanshin Will do! I've only just discovered your channel, and I'm new to all this. But I love the clarity with which you explain everything. Thank you!
Great info. Love the detail
Thank you!
Hi Sasha, Thanks for the video. Any idea wher can buy SOXX? iShares Semiconductor ETF? Thanks
This has left me slightly confused. I agree with your views on us outperforming all in the future. So if I had to pick one etf for the long term what would that be.
Surely it's vuag based on the growth opposed to vusa. Please let me know what's the best etf for long term if its either of these or something completely different
Hi Sasha and thanks for the great and informative video!
Maybe you can help me with this question:
I have Interactive Brokers set up as Ukraine resident, and I see that Ukraine is on the US Tax Treaty list with values of 15, 5, 0 written in the table.
As a novice, it's difficult for me to understand - generally speaking, does this put me on VOO (USA) side of the market, or CSPX (Ireland) side?
Can you give your own opinion please?
Would love to hear as well from you, fellow RUclips viewers...
Thanks in advance! 💪😊🌟
What is your thoughts on buying VUSA on Trading 212 over the long term (20-30 years)?
Hello! I am from România. I could use Revolut to buy with euro or even pounds. What should I do? Which one of the ETFs should I buy? Thank you for your support 🙏
great video, found it very helpful :)
Thanks Michael!
Superb video as always!
But im confused about the VUAG dividend point. How can the dividend be used to increase the share price? Surely the price is determined by the market, so I'm confused how the dividend can be used to increase the share price? Unless its vanguard who is setting the price? But you also said the spread is set by the market, so clearly I'm missing something :P
Yeah - the price is determined by the market. But imagine the market agrees that the price of the share is £50 and there are 1,000 shares in total - the total value of the fund is £50k. Imagine that the fund gets £1k in dividends and now there is £51k of value in the fund - the share price will adjust immediately with people only wanting to sell for the higher price given the underlying value.
I did mention it because most people don't know this is what happens :)
I believe there is more to the issue than that. The £1k that you mention would be used to buy more underlying shares (Microsoft, Amazon,..), which in turn would lead to additional dividends inside the existing ETF. Over time, this translates into a faster growth rate in the price of VUAG as compared to VUSA.
What factors should I consider to determine the optimal stock exchange for investing in the Vanguard S&P 500 UCITS ETF (VUSA) from North Macedonia-between options like Amsterdam, Italy, and Germany
Which platform do you use to buy US ETF's? I have an IG account and am now unable to trade anymore US ETF's due to change is legislation using a KID document. I'm now thinking of buying the VUSA.
Hi Sasha! Appreciate your videos. I will be relocating from Russia to the UK and your channel is very helpful in terms of investing in the UK! I am curious if you have any Russian origins, you second name is a typical Russian one :) once again thanks!
Hi, thanks for this. What would you suggest for Hargreaves Landsdowne users?
Do you have any of these ETFs on the platform? There are iShares equivalents as well.
I am guessing you want to invest in one of the free/cheap funds but I don’t have an account with HL so I don’t know what the options are.
Thanks for doing this helpful video. We spoke briefly about fund fees on a different video. I’ve come to the conclusion that although 1% total fund fee might have a bigger impact down the road when my portfolio grows in terms of monies lost, perhaps it’s worth paying if the fund is doing really well and generating great returns. I don’t think the slightly higher fees of say Hargreaves v Vanguard or other platforms deter me. HL is an established platform and has many funds to choose from. I guess these are all points that should be considered when selecting a platform.
You've got to pick what you're comfortable with at the end of the day. I have my preferences and I prefer not to pay £12 per trade but some people value security a lot more and perceive the free platforms to lack in that so it's completely your call!
@@SashaYanshin That’s true. £12 per trade is a lot although funds have no immediate cost except the small ongoing charge. I use FreeTrade for individual stocks. 👍🏻
Sasha, what are your thoughts in respect of SPDR S&P500 accum ETF. As of March 2024 has TER of 0.03% with physical replication.
IVUSA - Euro based , To avoid currency conversion can I prefer euro base s&p instead of dollar/pound one ?
How does these costs compare with buying oeic"s or unit trusts tracking either the sane or similar indices in the UK?
I’m using Charles Stanley direct to invest in the sand p is there much difference in price with vanguard
Hi Sasha, thank you for the great video! I use a Freetrade GIA (not an ISA) account. I notice that for VUSA, apart from 0.0701% ongoing charges, it also charges me a very small transaction fee of 0.0144%. Is that due to the spread??
Those transaction fees are built into the ETF and are on buying/selling out of positions. In reality, it will be so negligible that you won't notice the impact on any portfolio that doesn't carry a crazy number of zeros.
@@SashaYanshin Thx!
I'm using IUSA instead of VUSA, is there any particular advantage in switching to VUSA?
No difference at all - just operated by different companies but do the exact same thing 👍
Great video Sasha, liked and shared. etoro doesn't allow purchase of actual ETF asset, they only allow CFD, which is risky as you said and you recommended against it.
Does Trading 212 allow purchase of actual ETF asset?? I don't want to buy CFD.
Thanks
They do have some ETFs - eg. the iShares equivalents. So it does vary.
@@SashaYanshin I actually checked iShares s&p 500 IVV on etoro, and not possible to buy actual asset in UK. It only shows CFD option..
@@shahinjet1 Check IUSA
Etfs have deemed disposal in ireland - which means 41% is taxed on the gains of the fund every 8 years.
You’re smashing these videos, really top content! 👍
Thank you Theo! Appreciate it!
Sasha isnt the invesco SP500 cheaper at 0.05% now? Can you compare
Would you invest in the S&P 500 within a Vanguard account or App like t212?
He talked about it at the end of the video I believe, I'm sure Vanguard charge a small managment fee so it's probably wiser to invest on an apps such as T212/Freetrade. Although I think it depends on the amount per year.
Ive got a small question, i can buy VUSA in Euros which is better for me but since that index is US based companies won’t I have to pay 30% tax since Im not a US resident?
Since lockdown started in March last year I've been on the waiting list to sign up to Trading 212 and still not had an email to say they're open for registration.
Same for me, I complained yesterday and they sent me this:
"I am sorry to share that since the residential address is located in the UK, we will not be able to proceed with your account verification. The reason for such a decision is that we have launched our entity under which we are registering all clients who are residents of the European Union.
We are currently working on finalizing the enlargement in our infrastructure so we may continue registering accounts outside the EU.
In addition, be sure to join our waiting list so that you can get informed once the account activation process is enabled."
You should be able to get on it now because my friend did the other day
you said in VUSA dividens are not reinvested automatically, does this means you have to go manually into the platform and choose to reinvest them? or how do you do it if you want the dividends to be reinvested?
Yes - once a quarter OR you can put the VUSA in a Trading 212 Pie and then set the Pie to automatically reinvest any dividends - then it'll just do it automatically for you 👍
@@SashaYanshin thank you good sir, awesome video as always
@@SashaYanshin Do Freetrade have an equivalent of the T212 pie?
Awesome 👏 I was going to ask about this dividend reinvestment with VUSA but the pie solves it. Sasha are you tempted at all to open the vanguard life strategy fund this year or will you keep going with trading 212 and add another £20k and just buy more VUSA monthly? I think I will be doing the latter 😌🙌
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Always smashing out the right subjects. 👍. Could I ask a topic on ETFs that would be good to look at other then VUSA, ones that are available on 212?! Especially £ versions maybe.
I do have a video about some great UK ETFs here: ruclips.net/video/yz-5Wf1S9Uk/видео.html
hi sasha, looking to invest in s&p 500, i have a isa and invest account on trading 212, what would you recommend i use?
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I'm still not clear on why VUSA would be cheaper than VUAG? Does this still hold true? Currently, I don't see any difference in spread between the two (maybe I'm looking at it incorrectly). On Hargreaves Lansdown's site they have the spread for both at 0.08%, translating to a difference of 5p for each. On the other hand you do have costs associated with having to reinvest the dividends as well as the hassle of having to do so manually, neither of which are an issue with VUAG. So I can't see any reason for why VUSA would be the better option. I'm trying to decide currently which I would be better off investing in. If you have a moment, any further thoughts on why you invest in VUSA rather than VUAG would be super helpful! Thanks.
And then related to the above, could the spread change further over time where VUAG actually becomes narrower than VUSA?
Question, why not buy straight into VTI or SPY
Is it worth investing in both of them vusa and vuag ??
Something i noticed and im sure is a simple reason but VOO & SPY seem to have a much better % return considering they all track the same thing, is it due to currency?
May well be if you are viewing one in £ and the other in $
Hi Sasha, thanks a lot for the video.
Considering moving from freetrade to trading 212 this April for my stocks ISA.
Will I be able to keep my old account (and not put money in it) and open new account for this financial year? Or i need to sell and close Freetrade before I jump.
I understand that we’re allowed only one investment isa per year
Many thanks
Why wouls you I use both free trade why more enjoyable
But yeah you can do both just let the free trade grow without depositing anymore
@@elka-bs8590 that’s great
Yep - you can keep the old one open and open a new one. You can even transfer the old one INTO the new one if you choose to do so (although that'll cost you on FX fees if you hold non-£ stocks in there).
@@SashaYanshin thanks so much Pal, I’d probably leave Freetrade account open. The only niggle is that to keep the account open, I’d have to continue paying £3 monthly fee.
Literally just set up £100 a month payments into the vanguard s&p 500 so let’s hope you talk good about it in this video
Ahaha. But which one is the question!
@@SashaYanshin I’ve invested in VUSA, which seems a pretty good choice after watching the video!
@@kierxn248 👍
Hi sasha, just stumbled across this video as I'm wanting to begin to invest using the s and p 500. If I'm only planning on investing £50 per month into it, would you advise just using the GIA on free trade as I wouldn't reep the benefits of the stocks and shares ISA?
I'd say initially there is no real reason to pay the £3 ISA fee if your investments are going to be that low - you always have the chance of moving inside an ISA later on if your investments grow/you begin depositing more 👍
Thanks for the reply! Is it as simple as transferring investments over to the stocks and shares account from a Gia when wanting to do so?
Love your videos , one question though. Is it worth to invest ETF through etoro?
eToro is probably the worst out of the platforms for ETFs - you can't invest in the big European ones like VUSA at all on there and if you invest in something like VOO, you are only buying a CFD (albeit with no fees or leverage involved) but you do not actually own a share in VOO - not buying the underlying asset. So I personally wouldn't use that platform for ETFs as I think there are better options for that elsewhere.
@@SashaYanshin thank you for your answer😃
@@SashaYanshin So, if you do not own a VOO ETF on etoro that you paid with your money, does it mean they can close your position at anytime?
@@coffee7398 Not really except in pretty specific unusual circumstances - if you are not buying on leverage, it becomes a very simple 1:1 instrument. You can buy IUSA directly though - same thing and not a CFD.
VUSA which is the vanguard UCITS etf - correct?
What do you mean we cannot invest in voo?
I am based in the UK and VOO is available on etoro... Is there a problem investing in that index if I am based in the UK?
You’re investing in VOO through a CFD on Etoro. You can’t buy the actual shares. 👍
@@SashaYanshin hmm
Is that a huge problem? Sorry I am new into this 😁
@@SashaYanshin Also VOO on HL
I invested in VUAG before watching this video. 😩 Do you think it's worth swapping over now?
The differences we're talking about are miniscule and given you already bought in, there is no benefit to swapping to VUSA - that tiny microscopic difference in spread is already gone. You won't even notice it.
Hey Sasha, can you make a difference between the vanguard and ishares S&P500???
I am struggling to decide between the 2
There is pretty much no difference.
Hi Sasha I would like to ask as an European resident not living in UK. Which ETF should I buy on Trading 212 when I use €? If I buy VUSA in £ it will be converted from € -> £. And then dividends will be paid from $ -> £ -> € ??? So 3x conversion? Or how is it? I do not see any VUSA alternative in € on Deutch exchange. Thanks
I am pretty sure you can buy VUSA in Euros on the Amsterdam Euronext and the Deutsche Börse in Frankfurt. Took a look and looks like you can buy it in Euros in Italy as well - you just need a broker who has it on their books.
If you buy in Euros, I am 99% sure the conversion will just be USD > EUR without the interim GBP step.
@@SashaYanshin So Trading212 does not have it in eur? Or I just can not see it. I see that it has VWCE which is in € and seems to be same as VWRL in £. But no SAP 500 in €. It is really confusing for people who have account in EUR. Using just Etoro and Trading 212 for now. And thank you for reply :)
@@MultiDELAK IUSA and SXR8 are the iShares equivalents to VUSA and VUAG pretty much but have Euro versions on Trading 212. 👍
Do your own research of course - I'm just a random guy on the internet!
so what is cheapest way to invest in this find from UK now ? thanks
I’m from the uk and looking to invest £500 a month into a Hargreaves’s and lansdown Isa and I want to invest in the S&P 500 so is vuag that?
Hi, could you answer a query I have please, Vanguard S&P 500 says (Tax) UK reporting. so is it UK reporting even if its in an ISA? Or is it completely Tax exempt if its in ''Vanguard Stocks & Shares ISA''. Thanks
The Reporting bit is the name/class of the ETF - it’s a requirement to be able to invest in the EU so it doesn’t really mean anything. If it’s inside the ISA, the Cap Gains and Dividend tax free benefits still apply.
@@SashaYanshin cheers mate, been wondering about this for couple weeks, big help 👍🏻
Hello Sacha, My wife and I are retired and we live in UK. We have 100,000 euros in a bank in Spain, the account grows by around 3,000/month from a pension fund from our tenants. Could you please give us some advice on where to invest? Thank you for your wonderful video.
Just invest 10000 in S&P 500 and sit back and relax
So you’d say to signup to a Stocks and Shares ISA on Vanguard UK would be the best choice?
I am not really saying that. Vanguard has the 0.15% annual fee which makes them a little more expensive than some of the alternatives...
If you just buy and hold for a long time. Isn't VUAG better option as you get more value due to auto dividend reinvesting?
Well there is nothing stopping you reinvesting dividends from VUSA - same effect and some investing apps let you do it automatically.
@@SashaYanshin wouldn't you pay spread every time you re-invest dividends ?
Hi Sasha, thank you for another great video. If I buy VUSA (and other ETFs) with Freetrade's GIA account, do I have to file Self Assessment report to HMRC? Are the dividends and capital gains classified as in come?
You might want to check out the two videos I made yesterday - one about Tax on Investing and one about calculating Capital Gains Tax. All explained in detail there :)
@@SashaYanshin Thank you so much, Sasha! You're great! :)
On vanguard you will have a transaction cost as well? It outlines three costs: ongoing, your 0.07%, the spread and the transactional cost?
All replicating ETFs will have costs associated with buying and selling in and out of stocks - these are very very low though - low even compared to the annual fee and spread. We're talking something like 0.0014% maybe for VUSA - about 1.5 pence per year per 1,000 invested.
@@SashaYanshin thankyou for that. If you pull up the costs on the Vanguard site, it’s 7 basis points for ongoing charge, 1 basis point transaction fee and another 2 basis points for a one off charge!
I’m guessing that buying on another platform, the last two charges i mention will be different?
www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges.pdf
@Dean Robert Noble, if u invest using vanguard platform, then there are transactional costs if you want to perform the transactions immediately.. U don't pay transactional cost if u allow the platform to buy and sell in lots(mostly after market hours)
All of the ETF fees are baked into the ETF returns - you won't receive separate charges for these. And it doesn't matter which platform you buy them on - these are entirely separate from platform/brokerage fees.
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Hi there Iv got a£1000 is S&p500 a good way to go ?
What about VUSA VS CSPX?
Hello, I am based in Germany, I would like to know which specific ETF is better to invest in with low fees , is tax efficient and will give me more in terms of return on investment. I would like to invest in the S&P 500, but I don't know which one in Germany is better, the accumulating or the distributing type and with all of those I've mentioned above. Thanks and more power to you!
VUAG is better as a 'set and forget' than VUSA. Not sure why he bangs on about VUSA over VUAG
I currently invest in Vusa vanguard s&p 500 on Freetrade but you have to invest over £55 each time, is there anyway if you want to invest less?
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Europe prohibiting to buy American ETFs directly is an utterly disgrace. They claim the products are too risky but in fact simple stocks are even riskier. They're just preventing people to make money by themselves and most of European brokers loosing their jobs.
It's not really to do with the risk - all to do with the reporting that these ETFs do and the way these differ by different markets. There's perfectly adequate alternatives for the S&P 500 ETFs based on the London Stock Exchange so I don't think it's that big of a deal.
@@SashaYanshin Thanls. Is there any European alternative to Vanguard VTI? It outperforms S&P500 index. Or VGT? Or MGK?
@@nomcognom2332 Did you find an alternative to VGT ETF in Europe? I am also interested. It had very good performance. Most likely in the future also.
The iusa on free trade is cheaper than vusa on free trade where u can buy 1 full share at a time? (The ishares s&p500)
What do you mean by "cheaper"? You mean the share price is cheaper? That share price doesn't really mean anything by itself. And yeah - I hear you on the fractional share issue with Freetrade. Hope they improve that in the future but at £50 a pop it's still not too bad - certainly not like buying 1 Amazon share :)
@@SashaYanshin so if I’m investing around £50-£60 a month it doesn’t matter if I buy 2 shares of i shares S&p 500 at £28 or 1 share of vusa at £50? I’m just starting out thanks
@@ibrar4397 No - it's an index ETF so the price of the actual fund makes no real difference. It's the relative growth in that price that really matters :)
What about another VUSA in EUR?
I had to watch this 3 times, so much information and you speak super fast. 🤣🤣 thanks though
So is VUSA the English equilvant of s and p 500?
Yep and for most other countries too. The non-US version of VOO
What is the ubs 500 accumulation on HL is that different to vusa?
Hi
In your opinion if you were to invest just £100 a month s&p 500 and your choice was between 'freetrade' or 'vanguard'
Which platform would you use (if it was you)
He says in the video: Freetrade
Out of those I'd pick Freetrade unless I was going for an ISA - with an ISA and a low-ish amount, Vanguard would be cheaper but for larger amounts of over £24k (more than 1 year of contributions), Freetrade will again be cheaper.
So not a straight-forward answer there.