Investing in the S&P 500 is popular and reliable strategy for building wealth over a long time horizon. Since US ETFs can only be accessed in Europe by professional investors, many EU retail investors ask themselves which is the best UCITS equivalent ETF available in the market?
Among the various options available, Vanguard S&P 500 ETF (VUAA) stands out as being one of the best S&P 500 ETFs (Exchange-Traded Funds).
Understanding the S&P 500
The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. It serves as a benchmark for the overall health of the U.S. stock market and is a key indicator of the U.S. economy. This index is diverse, covering various sectors such as technology, healthcare, finance, and consumer goods, and it represents about 80% of the total market capitalization of the U.S. stock market. Investors use the S&P 500 to gauge market performance and compare their portfolio returns, making it a vital tool for assessing investment success.
Why Choose Vanguard S&P 500 ETF (VUAA)
S&P 500 ETFs track the index and offer a convenient and cost-effective way to gain exposure to the index. The Vanguard S&P 500 ETF is considered one of the best S&P 500 ETFs for several reasons.
Firstly, the Vanguard ETF with ticker VUAA has 62.5 Billion worth of assets and a low ongoing cost ratio of just 0.07%.
Secondly, Vanguard’s S&P 500 ETF has a proven track record of accurately tracking the S&P 500 Index, ensuring reliable performance for investors.
Thirdly, this ETF is also highly liquid, allowing you to buy and sell shares easily on a major European stock exchange, in this case Germany.
Performance Overview: S&P 500 Annual Returns
VUAA FSE aims to mirror the performance of the S&P 500 Index, which has historically delivered average annual returns of approximately 18.4% over the last 5 years (Nov 2019-Nov 2024). The S&P 500’s diverse portfolio includes companies with strong long term growth prospects, contributing to robust long-term returns.
S&P 500 Trading and Forecast
It’s important to research and understand each ETF’s structure, fees, and performance history before investing. While timing the market can be challenging, adopting consistent investment strategies such as investing regularly (dollar-cost averaging) can help mitigate volatility.
Additionally, selecting reliable platforms like Moneybase ensure that your trades are executed efficiently and securely. Money and investments entrusted on Moneybase are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09), all investment services provided on the platform are provided by Calamatta Cuschieri Investment Services Ltd.
Vanguard S&P 500 ETF Price
The Vanguard S&P 500 ETF price varies based on market conditions and the underlying performance of the S&P 500 Index. To keep track of Vanguard’s VUAA, simply log in to your Moneybase account, search for VUAA FSE. This allows you to monitor your investments effectively and make informed decisions based on market performance.
Understanding Price Movements
Market sentiment plays a significant role in the price movements of the S&P 500 ETFs. Positive news about the U.S. economy or individual S&P 500 companies can drive ETF prices up, while negative news can have the opposite effect. Additionally, economic data such as reports on GDP growth, unemployment rates, and inflation can influence investor confidence and, consequently, ETF prices. Global events like elections and geopolitical tensions can also cause price volatility, impacting the overall short term performance of the S&P 500 ETFs.
How to Invest in Vanguard S&P 500 via Moneybase
Moneybase is a user-friendly investment platform that simplifies the process of investing in ETFs. Follow these steps to start investing:
- Don’t have a Moneybase account? Create one within a few minutes. Download the Moneybase app and get started!
- Fund Your Account: Deposit by card instantly or send a bank transfer to your moneybase IBAN.
- Choose Your Vanguard ETF: Use the search bar on Moneybase to find VUAA FSE. Click on the ETF to view its details.
- Place Your Order: Decide on the investment amount and choose between a market order (buy at current price) or a limit order (set a specific price). Review your order details and confirm the purchase.
- Monitor Your Investment: Use Moneybase’s dashboard to track the performance of your Vanguard ETF.
Conclusion
Investing in the S&P 500 through Vanguard S&P 500 ETFs like VUAA FSE offers a robust and diversified way to gain exposure towards the U.S. stock market. This ETF is considered some of the best S&P 500 ETFs due to its low costs, broad market exposure, and reliable performance. Vanguard’s S&P 500 ETFs provide a solid foundation for achieving your financial goals. By leveraging platforms like Moneybase, you can invest in these ETFs at low cost and monitor your investments with ease.
FAQs
The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. It serves as a benchmark for the overall health of the U.S. stock market and is widely regarded as a key indicator of the U.S. economy.
Among the best S&P 500 ETFs, VUAA FSE is highly regarded for its low expense ratio and reliable performance in tracking the S&P 500 Index.
You can check the Vanguard S&P 500 ETF price easily through Moneybase. Log in to your Moneybase account and search for VUAA FSE.
The S&P 500 has historically delivered average annual returns of approximately 18.4% over the last 5 years (Nov 2019-Nov 2024). However, past performance is not indicative of future results, and returns can vary based on market conditions and economic factors.
VUAA does not charge entry or exit fees and has total expense ration of 0.07% p.a. Investing in VUAA on moneybase starts at just EUR 1.25
To invest in the S&P 500 via Moneybase, sign up for an account, fund your account, search for VUAA FSE, place your order, and monitor your investment through the Moneybase dashboard.
Disclaimer
This is a marketing communication addressed to knowledgeable and experienced investors. The information herein does not represent and shall not be construed as investment advice, recommendation, or inducement to buy or sell financial instruments. The information presented is general in nature and is not directed to any specific person, and is therefore provided to you on the express basis that it is not advice, and you may not rely upon it in making any investment decision. Investments in any financial instruments involve risks; you should conduct your own research before making any investment decisions and seek the assistance of a financial advisor if in doubt. Before making any investment decision please carefully examine the Key Information Document (KID) available on Moneybase platform in the instrument details section, or contact us at any time for assistance. The KID contains important information in relation to the security, including the associated risks.
This is a complex instrument and may not be suitable for retail clients. Past performance is not indicative of future results. The value of your investment may go down as well as up and may be affected by changes in currency.
Calamatta Cuschieri Investment Services Ltd (CCIS) is licensed by the MFSA to undertake investment services business under the Investment Services Act. CCIS is a subsidiary of Calamatta Cuschieri Moneybase plc with registered address at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara, BKR 9034, Malta.
