Which S&P 500 tracker if I am in the UK?

šŸ“Š Investing
1

I see that there are quite a few S&P 500 trackers available on Trading212, such as those from Vanguard and iShares.

Iā€™m looking for a vanilla standard one. Accumulation.

Which one would you suggest please?

Which has the lowest fees?

I couldnā€™t find the fees they take in their details page on Trading212.

Iā€™m in the UK and investing via GBP.

Thank you!

2

The cheapest is SPDR S&P 500 UCITS ETF (Acc).

  • TER: 0.03%
  • Ticker: SPXL

Itā€™s very liquid as well so bid/ask spread is low.

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3

Google or www.justetf.com will help.

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4

Incredible! Thank you very much.

The 0.03% seems awesome.

My only concern is it seems to be ā€˜too good to be trueā€™.

Is there any downside to this ETF compared to other similar ones?

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5

Thatā€™s really helpful. Iā€™ve been looking through it. Many thanks!

6

Hehe, it really is true. Thatā€™s what competition does, it drives down fees.

As far as I know, no downsides. As I mentioned itā€™s very liquid (low spread) and itā€™s also big in AUM (3+ billion dollars) so no chance of closing.

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7

Iā€™d go with SPXL or SPXP, theyā€™re both uber-cheap at 0.03% and 0.05% respectively. In theory, the latter should marginally outperform because itā€™s swap based but some prefer full replication, myself included, even if itā€™s a bit of a misnomer due to existing lending/counterparty risks.

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8

I am tremendously grateful for the helpful advice above.

ā€œthe latter should marginally outperform because itā€™s swap basedā€ - pardon my ignorance, but may I ask what the means please?

Thank you in advance.

9

Hereā€™s a good explanation from Invesco: https://www.invesco.com/uk/en/insights/where-swap-based-etfs-could-have-advantage.html

and justetf: https://www.justetf.com/en/academy/synthetic-replication-of-etfs.html

Personally I prefer to invest in funds that own the real securities. By investing in a swap fund you take on additional risk for a small gain.

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10

Thank you! Youā€™ve been incredibly helpful.

I will study the articles youā€™ve linked to now.

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11

bid/ask spread - you mentioned this, but T212 doesnā€™t show this, why? Is T212 profiting from the spread for limit orders?

12

I donā€™t know why T212 doesnā€™t show bid/ask spread, but for sure they are not profiting from it as itā€™s illegal to add to the spread when trading stocks or ETFs (they can and do add to CFDs though).

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13

Beat me to it. This!