Vanguard Funds Plc S&P 500 UCITS ETF USD DIS
Why is this fund on our radar?
Exchange traded funds (ETFs) have become a popular starting point for many investors because they offer a simple, low-cost way to access broad markets. An ETF is essentially a basket of investments, usually shares or bonds, that aims to track the performance of a specific index, such as the FTSE All-Share in the UK or the S&P 500 in the US.
Although we believe high-quality active managers can add value over the long term, we also recognise that many investors want simple and transparent building blocks in their portfolios. With this in mind, we reviewed the large universe of ETFs with the aim of selecting options that provide clean, representative exposure to their markets at a low ongoing cost.
The Vanguard S&P 500 ETF provides straightforward access to the largest and most influential companies in the United States, a market that has historically been one of the strongest drivers of global equity returns. The fund tracks the well-known S&P 500 index, which represents around 80% of the US stock market by value and includes household names like Microsoft, Apple and Amazon, along with other world leading businesses across healthcare, technology and finance.
We selected this ETF because Vanguard is one of the most established and trusted names in passive investing, with a long track record of running large index funds efficiently and at very low cost. In this case, the ongoing charge is just 0.07%.
Portfolio
The ETF is large, highly liquid and uses full replication, meaning it holds every stock in the index in proportion to its weight. This helps it stay closely aligned with the benchmark, reflected in its consistently tight tracking error. Its low fees, combined with its scale and broad availability on major platforms, make it an accessible way for investors to gain straightforward exposure to the US market.
