What's the difference between the S&P 500 ETFs?

(Michelle ) #1

Hi I noticed there are s&p 500 shares available on the app and one is around £20 more then the other. I just wondered what the difference between then was. I am still new to this all and trying to figure it all out so I am sorry in advance if it is a stupid question.

Thank you.

Michelle

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Are VUSA and VOO essentially the same? What's the difference?
(Alex Sherwood) #2

It’s not a stupid question at all, in fact, you’re not the first person to ask it. I’ve moved it to back to it’s own topic now though as I can’t find the topic where it was discussed before :thinking:


sorry @Certi.Curti for cutting you off there

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#3

Its not a silly question.

One is provided by Vanguard, the other by iShares - Simply put they’re two separate organisations tracking the S&P 500. The difference in share price isn’t a factor worth looking at - the key thing is to look at historical performance - how well they track the index, and fees (known as expense ratio)

In the case of these two, they’re both 0.07% and their performance have been pretty identical. iShares marginally better in the last year by decimals.

Its a question of whether you think one will track the performance of the S&P better than the other going forward. I hold iShares - this may change in the future depending on performance.

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#4

LOL I was thinking what just happened there…

Don’t you sleep? Alex lol.

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#5

Alex is always on the prowl

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(Michelle ) #6

Thank you all so much. The support within this community always amazes me.

Michelle.

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#7

Just adding to the very good answer by Certi.Curti, specifically for IUSA and VUSA, probably one of the main differences is the way that they track the index.

The former uses what we call Optimized sampling, while the latter uses Full replication.

You can see the difference here

https://www.etf.com/etf-education-center/21038-how-to-run-an-index-fund-full-replication-vs-optimization.html

The bottom line is that full replication buys all the securities in the index, while optimized sampling uses statistical metrics in order to choose some of them.

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(Gareth) #8

Would it be possible for Freetrade to add the OCF to the ‘About’ Section when you’re looking at the ETF? To me, that’s the most important thing to check. It would save me having to open the Key Information Document, which can sometimes be a pain to do on mobile. But I guess it would then be a problem of keeping it up to date…

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#9

Hi @Gaz92 (and @jazzersi) it’s a really good idea, and the primary way I filter funds.

If you add your vote to the idea right here the sheer weight of numbers will hopefully help FT prioritise it :slight_smile:

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