SPXP and VUSA S&P 500's advice

Hello :wave: I am new to the whole investment thing, and I recently I invested in Vanguard S&P 500 (VUSA), someone told me that it might worth to change them to Invesco S&P (SPXP), I tried to find out the reason of this advice as that is the only way I learn as well, and I found

the difference from what I can tell is that SPXP is 0.02% cheaper, synthetic instead of physical, and Accumulating instead of Distributing in comparison to VUSA

So… these terminologies kinda confused me, are they essentially the same stock, but the once cheaper as it is provided by a different body? Or there are more significant differences?

Any help would be greatly appreciated.

There is a topic in which it was mentioned.

Hi,
Whilst I’m no financial professional, the accumulating means they automatically reinvest dividends straight back into your ETF whilst distributing means you get paid the dividend into your account for you to spend however. I believe ‘distributing’ is a little easier (in the UK) to work out your tax should you need to fill out self assessment. It looks like both funds are otherwise similar barring their size and v.small difference in cost.
Like you I was looking at S&p500 ETFs and gettting stumped as to which one is best(and have got one in my portfolio). I have a since discovered other ETFs that appear to have better growth like ishares nasdaq100 and ishares clean energy for a bit of diversification…just a thought.

Oh yes, certainly I invested a bit already in stocks like the one you mentioned, I was just wondering if they are really similar, then you might as well go with the SPXP one as it is slightly cheaper even by 0.2%.

Thanks Vedran, that’s very useful.

Very interesting post thanks for sharing :grin:.
Aren’t dividends non taxable in a isa account?

I’ve gone with the SPXP , after seeing that article. So thanks to all for highlighting this👍.

Personally, while I am quite new in investing, I will stick with the Vusa at least for now, as it sounds more risky for my risk tolerance to go with a synthetic option for long term.