Vanguard S&P 500 UCITS ETF USD (Acc.) - VUAG

Stock Discussions
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This ETF tracks the S&P 500 index. It reinvests dividends back into the fund.

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Hey everyone, is this a good first investment for a beginner?

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It is generally considered a good start. :+1:

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Hi @chelsea - happy to offer my 2 cents.

If you’re looking for a diversified portfolio EFT’s are a good choice and then you’re only choices are-

  • What to track This EFT tracks the S&P500 which is very US focused. There are more global funds such as VWRL if your prefer not to be so USA exposed.
  • Accumulating or Dividend. This collects the dividends paid by the companies and reinvests them. If you don’t need any income and are looking for growth this is a good way of compounding your investment. (Ie your investment returns go back in to increase the value for free)
  • Currency hedged - This is really not for beginners but they manage the difference between the value of £/$. I wouldn’t worry about this just yet.
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Hi Neil, thanks for taking the time to explain and share your knowledge. I’m really excited to get started and learn. This was really helpful! :blush:

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New to investing can I make fractional share to this S&P 500 if so what amount of could I purchase it for

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Hi @MDC2010 welcome to the forum. Firstly let me start by saying that as a relative newbie exploring a diversified ETF is a fantastic way to start.

Fraction shares, as of now, are o LG again let on US listed stocks. While this tracks a US index it’s listed in London. You’d need to buy this is I whole amounts of £58.27 (+- the movements)

The FT team have hinted to at fractional shares will be coming for more regions and I would expect to see hit shipped when they launch the European markets.

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Hi @chelsea how did you get on? Did you pick any winners so far?

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Hi @NeilB. Hope you are well. I’ve kept it safe for now. I’ve been buying a couple of these shares every month until i’m confident enough to invest elsewhere.

Thanks for checking in!

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That’s awesome - if you’re serious about building wealth and not about pretending you’re a super smart stock trader then a well diversified portfolio is the way to go - the easy way to that (at a young enough age) is with these ETF’s. Keep it up! :ok_hand:t2:

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Sorry question. How do you do regular investing on Freetrade? On my other platform, I regularly invest £25 monthly to my fund. Is it possible to do it on an ETF on Freetrade? Thanks.

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You can do that on Freetrade. However, there are no fractional ETFs, so you have to invest what one part of the ETF trades at as a minimum. For this ETF this would currently be ~£64.

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How do you go about setting that up?

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Hi @gianthegreat :ocean:

Did you pick your user name like it appeared on the school register? Here Sir :raised_back_of_hand:t2:

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I’ve bought Vuag but am wondering if there is an etf that tracks just the top 50 or 100 of the S& 500? I am trying to increase exposure to the biggest (mainly tech stocks) within the s&p 500

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@MMtrader

Check out the Nasdaq 100 trackers

iShares Nasdaq 100 ETF - ticker CNX1

Invesco Nasdaq 100 ETF - ticker EQQQ + Hedged EQGB

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Have a look at XLKQ which focuses on the tech companies only within the S&P 500. This differs from NASDAQ 100 which is mainly tech companies but not exclusively.

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Hi guys

Just a quick question.

I was looking to invest into Vanguard Vuag to track the SP500 but there is also Vusa, ishares SP500 snd a few others

They all seem to track the SP500 but what’s the difference and as a beginner which would you suggest?

Any help is much appreciated

Jamie :grin:

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VUAG is Accumulating (Acc) and VUSA is Distributing (Dist). Acc means income from the stocks is reinvested, I.e. encourages growth, while Dist means the income is distributed to shareholders, I.e. paid in dividends.

As for differences between ETFs that track the same indexes, you should look at the Key Information Document and do your own research there. Look out for differences in currency hedging, risk appetite, reinvestment scheme, etc.

When comparing ETFs that track the same index, check out the Costs & Charges.

Ultimately choose an ETF based on your preferences.

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Quick question,
So I understand with VUSA you are paid dividends into your account as cash. But with the accumulation type (VUAG) are you still technically paid the dividends but they are automatically reinvested or are they just kind of not paid to you at all?
Is VUAG basically just like VUSA but u don’t have to reinvest manually? Will I receive extra shares like I would in VUSA if I was to reinvest?
Any help would be appreciated :slight_smile:

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