Which S&P 500 ETF?

[Mahogany]

Hi all,

Which S&P 500 tracker/ETF would you recommend buying in an ISA/SIPP? I've been using CSP1 for a long time but wondering if anyone has any better options in terms of spreads or fees. If it makes any difference, I use ii (interactive investor).

Thanks

[Ridealong]

This one on H&L platform UBS S&P 500 Index Class C - Accumulation (GBP) OCF 0.09%

[UrbanAchiever]

Ridealong said:

This one on H&L platform UBS S&P 500 Index Class C - Accumulation (GBP) OCF 0.09%

Agree, this is where I put my money, but worth checking the platform fees of HL, vs Fidelity, vs YouInvest (AJ Bell) to ensure you are getting the lowest cost provider. Not sure if Hargreaves Lansdown is the cheapest right now.

You can invest in UBS S&P 500 Index Class C - Acc through any of them as far as I know.

[VR99]

There is also VUSA/VUAG from Vanguard which is slightly cheaper but only VUSA (Inc version) is available on Vanguard, assume HL have both.

[av185]

Worth nothing HL do not charge buying and selling fees on funds.

[bitchstewie]

But they'll charge you a 0.45% platform fee on the first £250K worth whilst ETFs are capped at £45/year.

VUSA or any number of ETFs are cheap as hell.

OP is on II though so not an issue thankfully

[thekingisdead]

This might be of interest.

https://www.finumus.com/how-do-some-etfs-outperfor...

Finumus is now a contributor to Monevator - which I rate highly

[NowWatchThisDrive]

thekingisdead said:

This might be of interest.

https://www.finumus.com/how-do-some-etfs-outperfor...

Finumus is now a contributor to Monevator - which I rate highly

While the article does a good job of illustrating the difference between physical and synthetic ETFs, it's not necessarily always best to own the synthetic one. The extra return isn't quite a free lunch, as the provider is taking on counterparty risk by taking out a TRS. That TRS will be collateralised to some extent but there are complications which can ultimately result in the investors still taking a haircut in the event of the swap counterparty failing and the market for the collateral assets experiencing severe distress as a result.

[Derek Chevalier]

NowWatchThisDrive said:

thekingisdead said:

This might be of interest.

https://www.finumus.com/how-do-some-etfs-outperfor...

Finumus is now a contributor to Monevator - which I rate highly

While the article does a good job of illustrating the difference between physical and synthetic ETFs, it's not necessarily always best to own the synthetic one. The extra return isn't quite a free lunch, as the provider is taking on counterparty risk by taking out a TRS. That TRS will be collateralised to some extent but there are complications which can ultimately result in the investors still taking a haircut in the event of the swap counterparty failing and the market for the collateral assets experiencing severe distress as a result.

Yep, Finimus has spent years in the city so not sure why he made the last point - maybe I'm misinterpreting what he's saying.

"and buy the swap based ones"