How to invest S&P500
Discussion
Complete novice here.
How can I put a small amount of funds and add to it each month with a nominal amount into S&P500
Easiest and cheapest way?
I don’t have any other stock investments or ISA’s (if ISA is the way to go). I just want plain & simple S&P500. Have no idea what EFT’s and the like, are
Cheers!
How can I put a small amount of funds and add to it each month with a nominal amount into S&P500
Easiest and cheapest way?
I don’t have any other stock investments or ISA’s (if ISA is the way to go). I just want plain & simple S&P500. Have no idea what EFT’s and the like, are
Cheers!
Edited by Soir on Saturday 10th February 19:20
Is there a particular reason why you want to restrict yourself to the S&P500? It's perhaps worth remembering that just seven tech-based companies account for around 30% of its value.
A global tracker would give you some more diversity. Just be aware of which index a fund tracks, as some include emerging markets while others don't.
An ISA would be the best way to invest, as there are no income tax or capital gains tax liabilities.
A global tracker would give you some more diversity. Just be aware of which index a fund tracks, as some include emerging markets while others don't.
An ISA would be the best way to invest, as there are no income tax or capital gains tax liabilities.
As you're going to be adding a small amount each month, I would choose a platform with low or zero dealing costs. Investing in funds rather that ETFs tends to be cheaper in this regard, too.
This gives a pretty good summary of the main platforms' costs: https://moneytothemasses.com/saving-for-your-futur...
This gives a pretty good summary of the main platforms' costs: https://moneytothemasses.com/saving-for-your-futur...
Thanks all
It’s bit savings for my kids (£20k) I did have it in some random shares I bought through HL in a personal ISA 10 years ago but I just want to stick it in S&P500 and forget about it for another 10yrs.
I chose personal ISA instead of kids because I don’t want them to know about it or have access when 18.
I like the idea that SP500 will have a steady increase over a 10yr period and don’t want to risk or keep swopping it.
I just don’t know the best way to purchase them
It’s bit savings for my kids (£20k) I did have it in some random shares I bought through HL in a personal ISA 10 years ago but I just want to stick it in S&P500 and forget about it for another 10yrs.
I chose personal ISA instead of kids because I don’t want them to know about it or have access when 18.
I like the idea that SP500 will have a steady increase over a 10yr period and don’t want to risk or keep swopping it.
I just don’t know the best way to purchase them
BobToc said:
Open an ISA account with Vanguard and buy VUSA with a 0.07% charge. Bish, bash and bosh.
Agree vanguard, but VUSA is distributing (pays dividends), VUAG is accumulating (dividends are re-invested automatically), which I think is a better fit for the OP.Edited by BobToc on Saturday 10th February 19:52
So I'd recommend VUAG instead of VUSA.
I use interactive investor as my platform, they are currently offering £250 for a £20k isa creation, that's basically 2 years of platform fees for free!
Bonza.
stuthe
said:
said: Agree vanguard, but VUSA is distributing (pays dividends), VUAG is accumulating (dividends are re-invested automatically), which I think is a better fit for the OP.
So I'd recommend VUAG instead of VUSA.
I use interactive investor as my platform, they are currently offering £250 for a £20k isa creation, that's basically 2 years of platform fees for free!
Bonza.
I don’t think you can buy VUAG on the Vanguard UK platform oddly enough. So I'd recommend VUAG instead of VUSA.
I use interactive investor as my platform, they are currently offering £250 for a £20k isa creation, that's basically 2 years of platform fees for free!
Bonza.
So every three months I have to log in and reinvest dividends. Not ideal but not the end of the world.
I've got a Vanguard Global All Track.
I'm wondering if I should be investing also in VUAG. The two look to do similar things but with very different stock numbers
All Cap : 7000+ companies
VUAG: 500+ companies
I'm 40 this year and want to save heavily, happy with risk and be in a position in very early 50s to consider stopping or reducing work.
I'm wondering if I should be investing also in VUAG. The two look to do similar things but with very different stock numbers
All Cap : 7000+ companies
VUAG: 500+ companies
I'm 40 this year and want to save heavily, happy with risk and be in a position in very early 50s to consider stopping or reducing work.
redrabbit29 said:
I've got a Vanguard Global All Track.
I'm wondering if I should be investing also in VUAG. The two look to do similar things but with very different stock numbers
All Cap : 7000+ companies
VUAG: 500+ companies
I'm 40 this year and want to save heavily, happy with risk and be in a position in very early 50s to consider stopping or reducing work.
Will the S+P500 continue to outperform global markets? Who knows! I wouldn’t stress about it too much, you still get lots of US exposure through VWRL.I'm wondering if I should be investing also in VUAG. The two look to do similar things but with very different stock numbers
All Cap : 7000+ companies
VUAG: 500+ companies
I'm 40 this year and want to save heavily, happy with risk and be in a position in very early 50s to consider stopping or reducing work.
Soir said:
Complete novice here.
How can I put a small amount of funds and add to it each month with a nominal amount into S&P500
Easiest and cheapest way?
I don’t have any other stock investments or ISA’s (if ISA is the way to go). I just want plain & simple S&P500. Have no idea what EFT’s and the like, are
Cheers!
On the complete novice bit, there are a few decisions you will need to make: active or passive funds, fund choice, and platform. Here are some things I found useful...How can I put a small amount of funds and add to it each month with a nominal amount into S&P500
Easiest and cheapest way?
I don’t have any other stock investments or ISA’s (if ISA is the way to go). I just want plain & simple S&P500. Have no idea what EFT’s and the like, are
Cheers!
Edited by Soir on Saturday 10th February 19:20
Monevator blog has a good overview of passive investing (and also has a co blogger on the active side) Including example portfolios and broker comparisons. https://monevator.com/category/investing/passive-i...
There was a thread here called 'useful resources for the DIY investor'. It's a bit old now but some of the links still interesting!
On the specifics of the S&P500. You might find a simple global tracker scratches the itch while providing some diversification. E.g vanguard's global tracker VWRL has 60% of its shares based in the states!
Personally I wouldn't worry about investing at all time highs, especially if dripping in monthly. https://ofdollarsanddata.com/should-you-invest-in-...
A lot depends on the amount and frequency of contributions.
If you really do just want the S&P 500 VUAG is a good shout but it's an ETF so you can only buy whole units and right now each unit is £75 which may or may not be an issue with the monthly amounts you want to put away.
Some platforms will offer fractional shares but that's got a bit messy with the regulator.
You could look at a fund such as Fidelity Index US where if you only want to invest £50 you can do so.
If you really do just want the S&P 500 VUAG is a good shout but it's an ETF so you can only buy whole units and right now each unit is £75 which may or may not be an issue with the monthly amounts you want to put away.
Some platforms will offer fractional shares but that's got a bit messy with the regulator.
You could look at a fund such as Fidelity Index US where if you only want to invest £50 you can do so.
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