Just about to invest in the S&P 500, which one do I want to be using for the dividends to be reinvested? ISA account UK GBP
SPXL is the cheapest at 0.03%.
2 Likes
Check this out: Best S&P 500 ETF (Acc) - 2024 Results : r/ETFs_Europe
XYLP is the highest dy distributing, if you’re lazy for accumulating, find the equivalent. I prefer gathering dividends, and setting the price I am prepared to buy in, the market normally comes to meet me within 2 weeks.
@Goblin highest dividend yield doesn’t mean much if the overall long-term returns are still way below par.
Since inception (July 2023), XYLP made about +26% (including dividends) while pretty much all “normal” S&P500 ETFs have made around +40%.
(Looking at returns in GBP. The percentage values may differ when looking at returns in different currencies, but the ratio remains roughly the same)
This seems like mistakenly chasing high dividend yield on a “specialized” ETF while losing on the overall market returns.
Also the TER is quite high (for an S&P500-adjacent ETF anyways) and the returns certainly aren’t there to justify it.