I have been investing in S&P 500(Acc) for the past 8months and I haven’t see any increase in my portfolio.
And even when the market is doing well, the only increase I had was £7 (which later disappeared) and I’m concerned because I have friends who started the same S&P 500(Acc) investment after me and their portfolio has increased with profit and they have less amount of Investment that I have.
What could be wrong?
I wanted to know if I am doing the right thing or there is some I need to do?
The primary reason your portfolio hasn’t grown, despite the S&P 500’s strong underlying performance—is a combination of adverse currency movement (GBP strength) and the specific timing of your initial investment.
The Currency “Drag” (Stronger Pound): When you invest in the S&P 500 from the UK, you aren’t just betting on US companies; you are also betting on the US Dollar ($) against the British Pound (£).
GBP/USD Strength: Since August 2025, the British Pound has generally strengthened against the Dollar. It rose from around $1.3281 in early August 2025 to as high as $1.3824 in late January 2026.
The Effect: Even if the S&P 500 index grows by 5% in US Dollar terms, if the Pound also strengthens by 5% against the Dollar, your return in GBP becomes 0%. Essentially, the increased value of the stocks is cancelled out because each Dollar they are worth now buys you fewer Pounds.
Purchase Timing (Entry Price): If our friends started later than you, it likely gave them a much better "entry price”.
Market Peaks: By investing 8 months ago (August 2025), you entered the market at a relatively high point. While the index is “doing well” now, it may only be returning to the price you originally paid.
Market Dips: If your friends, starting later, they may have caught a market dip, such as the one in late 2025 when the GBP/USD was lower ($1.3021) or during early 2026 volatility. Because they bought in “cheaper,” any recovery looks like a profit to them, whereas for you, it is just “breaking even.”
The difference between your £0 growth and your friends’ profit often comes down to these factors:
Hedged vs Unhedged: If your friends used a GBP-Hedged fund (which removes currency risk), they would have seen the full 20%+ growth of the US market over the last year without the Pound’s strength dragging them down.
Lump Sum vs Monthly: If you invested a large lump sum in August, you are tied to that one price. If your friends are investing monthly, they are “averaging” their cost, which often leads to smoother (and sometimes faster) visible profits during volatile periods.
Investing in an Accumulating (Acc) S&P 500 fund is a standard long-term strategy for a GBP ISA. The “missing” profit is currently sitting in the currency exchange rate. If the Pound weakens (USD gets stronger) or the US market continues to climb significantly past its 2025 highs, your portfolio value will rise.
As you specified the increase you’ve seen in GBP, I would guess that you already have an ETF listed in GBP.
So you’ve already found out that, just because an ETF is listed in GBP, doesn’t mean it’s hedged. If it doesn’t specifically mention that it is hedged, you will suffer or enjoy the exchange rate just the same.
If it’s worth paying the additional fee for the hedging is a different matter. You will have to do some research to see if it makes sense for you.