Freetrade have a nice article on stock indices, but don’t offer acc and dist ETFs that track all of them. Let’s change that by voting!
(My picks are based purely on being at least 3 years old and having the lowest OFC in their category; this naturally tends to equate to the best 5 year performance, or at least in the top 3: performance is also affected by tracking error of the ETF in question, so Freetrade could equally go with the ETF that has the highest 5 year performance, or some balance of past performance and low OFC.)
S&P 500 Acc: Invesco S&P 500 UCITS ETF SPXP 0.05% Dist: VUSA is already offered, which has the lowest dist OFC in the category (0.07%) and top 3 performance. I’m not sure why there is also IUSA, which is like VUSA, but a bit worse.
(Acc ETFs naturally tend to have better 5 year performance that dist, which is why I think they should definitely be offered across the board. That and the fact Freetrade doesn’t offer DRIP to automatically reinvest dividends from dist ETFs.)
There are lower priced ETF shares that are following the same S&P 500 index and are also Accumulating like SPXP, so would be similar to buying SPXP in smaller increments/fractions with equivalent performance.
VUAG and CSP1 have a higher expense ratio (0.07 %) than SPXP (0.05%) and correspondingly SPXP performance has been better over the time it has been in existence.
While this is cheaper, and it would be the one I’d buy, it’s worth noting that SPXP uses swap-based replication rather than full physical replication of the index as VUAG does.
It’s also has a high unit price, so it’s not the most accessible unless you have thousands to invest.
Synthetic ETFs carry an additional counterparty risk. More details can be found below. I’d say the risk is minimal but if it bothers you, it’s only 0.02% more for physical replication anyway.
