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How to invest in the S&P 500 in Singapore

Find out the quickest and easiest ways to invest in S&P 500 index from Singapore.

The S&P is an index of the 500 largest listed companies in the US. It’s home to some recognisable brands, including many technology stocks, such as Twitter and Netflix.

The largest ten stocks in the index make up 21% of it, and the top four are all technology stocks: Microsoft, Amazon, Meta Platforms (previously Facebook) and Alphabet. We’ve detailed how you can invest in the S&P 500 from Singapore, the most popular S&P 500 index and exchange-traded funds (ETFs), and what else you need to consider.

What is the S&P 500?

The Standard and Poor’s 500 (S&P 500) is a stock market index of the 500 largest listed companies in the United States, measured by market capitalisation. Its name comes from the company created when Poor’s Publishing and the Standard Statistics Company merged. It created an index compiled of 90 companies, later expanding it to 500.

Can I invest in the S&P 500 from Singapore?

Yes, there are a number of ways you can invest in the S&P 500 from Singapore. The S&P 500 is a stock market index that tracks the performance of 500 leading US companies that are listed on the stock exchange. This means you can’t directly invest in the S&P 500, but can buy stocks in the companies that make up the S&P 500 or buy an index fund, such as a mutual or exchange-traded fund that tracks the overall performance of the S&P 500 index.

How to invest in the S&P 500

  1. Find an S&P 500 ETF, index fund or mutual fund. Some index funds track the performance of all 500 S&P stocks, whereas others only track a certain number of stocks or are weighted more towards specific stocks. You should select the fund that best suits your investment goals.
  2. Open a share-trading account. In order to invest in an S&P 500 fund, you’ll need to open a trading account with a broker or platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table below let you invest in US shares. We’ve listed some index funds below that are listed on the Singapore Stock Exchange (SGX)
  3. Deposit funds. You’ll need to deposit funds into your account to begin trading. Some brokers may charge you deposit fees, or you may need to pay a forex fee in order for your Singapore dollars to be converted into US dollars.
  4. Buy the index fund. Once your money has been deposited, you can then buy the S&P 500 index fund. You’ll generally pay a small annual fee to invest in an ETF or index fund.

What S&P 500 index funds can I buy in Singapore?

There is a handful of S&P 500 index funds listed on the SGX that you can invest in from Singapore, and you’ll have access to even more if you have an account with a trading platform or broker that offers direct access to the US stock market.

  • iShares Core S&P 500 UCITS ETF
  • Vanguard S&P 500 UCITS ETF
  • Invesco S&P 500 UCITS ETF
  • Xtrackers S&P 500 Swap UCITS ETF
  • SDPR S&P 500 UCITS ETF
  • HSBC S&P 500 UCITS ETF USD
  • Amundi ETF S&P 500 UCITS ETF USD
  • Lyxor S&P 500 UCITS ETF
  • Fidelity 500 Index Fund (FXAIX)
  • Vanguard 500 Index Investor Share Class (VFINX)
  • Schwab S&P 500 Index Fund (SWPPX)
  • iShares S&P 500 Index Fund (BSPAX)
  • T.Rowe Price Equity Index 500 Fund (PREIX)
  • iShares S&P 500 Growth ETF (IVW)
  • Portfolio Plus S&P 500 ETF (PPLC)
  • Schwab U.S. Large Cap ETF (SCHX)

What’s the best S&P 500 index fund?

As S&P 500 index funds all track the same group of stocks, the returns offered by different funds or ETFs should be fairly similar. When deciding on the best S&P 500 index fund, it’s therefore better to compare them based on the fees they charge, which is measured by Total Expense Ratio (TER).

The cheapest S&P 500 index fund is the Invesco S&P 500 UCITS ETF, which has a 0.05% total expense ratio (TER). This means if you invested $1,000, you’d be charged $50 in annual fees each year. This is followed by the iShares Core S&P 500 UCITS ETF and Vanguard S&P 500 UCITS ETF, which both have a 0.07% TER.

While the performance of different S&P 500 index funds shouldn’t diverge too much, there are some S&P 500 funds that have performed slightly better than others over time.

What is the Singapore equivalent of the S&P 500?

The S&P 500 tracks the performance of 500 of the largest companies on US stock exchanges, and is the most popular US stock index. The equivalent of the S&P 500 in Singapore is the Straits Times Index (STI), which similarly tracks the performance of the top 30 companies on the Singapore Stock Exchange.

Like the S&P 500, the STI is also used as a general yardstick to measure the relative health and performance of the Singapore stock market and wider economy.

How to invest in S&P 500 stocks

If you don’t want to invest in an S&P 500 index fund then you can buy individual S&P 500 stocks.

  1. Find a stock broker. You’ll need one that lets you invest in US stocks – the providers in our comparison table below let you buy US shares.
  2. Sign up and fund your account. You’ll need to provide some personal details and information about how you’ll fund your account. If you’re buying US stocks you may also need to fill out a W-8BEN form.
  3. Find a stock you want to invest in. Research some of the shares you’re interested in and find them on your chosen platform. We’ve listed some of the largest stocks on the index below.
  4. Choose how much you want to invest or how many shares you want. The platform should tell you how much this will cost you.
  5. Hit buy. It’s as easy as that!

If you choose to invest in all 500 stocks, you’ll find that it’s a very expensive method of investing as you may need to pay trading fees on every single stock you purchase. Some of the stocks in the S&P 500 are also valued in hundreds of dollars, so you’d need to invest thousands of pounds in order to get exposure to all companies in the index.

If you’re looking to diversify your portfolio by investing in the companies in the S&P 500, it’s likely going to be a lot cheaper and more efficient to invest with the second option. An index fund tracks the performance of the S&P 500.

What stocks are in the S&P 500?

The S&P 500 comprises 500 of the largest US companies by market capitalisation, which means it includes some of the most recognisable and popular stocks in the world. These include the following:

Why should I invest in the S&P 500?

The S&P 500 features some of the largest and most successful companies in the world and has historically given investors a decent return on their investment.

If you only invest in stocks available on the Singapore Stock Exchange (SGX), you’ll be limited in the number of stocks you can buy. Investing in an S&P 500 index fund or opening a trading account that gives you access to the US stock market will let you diversify your portfolio and open up the potential gains offered by US stocks.

How did the S&P 500 perform in 2021?

Like most stock indices, the S&P 500 saw significant volatility in early 2021 as a result of the coronavirus pandemic. However, those who held or bought during the crash saw their investments rise over the next few months, and the S&P 500 reached record highs towards the end of 2021.

Historically, the S&P 500 has had an average annual compounded return of 7.5%. Since 2009, the index has been profitable every year apart from 2018, and in 2020, despite the coronavirus pandemic, it grew by 16.11%. With the pandemic still ongoing in 2022, it remains to be seen how the S&P500 will fare in 2022.

Pros and cons of investing in the S&P 500

Pros

  • Access some of the largest US stocks
  • Stocks on the S&P 500 tend to be well known and perform pretty well
  • You can invest with index funds

Cons

  • Not completely diversified — you should invest in worldwide stocks to diversify your portfolio a bit more
  • Foreign exchange fees

Bottom line

Home to Disney, Netflix, Twitter and Tesla, the S&P 500 is made up of some of the largest technology companies. It’s understandable why investors want to get a look in! Take some time to consider how you want to invest – are there specific S&P 500 companies that you want to invest in, or are you looking to diversify with an S&P 500 index fund or ETF?

Make sure you consider the costs of investing in US stocks, as there will be a foreign exchange or currency exchange fee on top of any commission.

Compare S&P 500 trading platforms

Name Product Brokerage Fee Tradeable Assets Market Access Trading Platform Offer
Interactive Brokers
SGX stocks: $2.50
US stocks: $1 per share
Stocks, ETFs, Futures, Bonds, CFD
SG, US, CA, AU, UK, IN, JP, HK, MX, FR & 17+ more
Client Portal, Trader Workstation, IBKR Mobile, IBKR GlobalTrader, Impact, IBKR APIs
CFD service. Capital at risk.
Take advantage of low trading fees, multiple platform support, and an extensive list of asset classes across global markets, including stocks, options, futures, forex, bonds, and funds.
OFFER
Syfe
SGX stocks: N/A
US stocks: $1.49 per trade (regular pricing)
Stocks, ETFs
SG
Syfe Trade
Get $60 when you sign up on Syfe Trade (minimum deposit of $2,000 and make one trade). T&Cs apply.
Saxo Markets
SGX stocks: $5
US stocks: $4
Stocks, ETFs, Bonds
SG, US, CA, UK, AU, HK, CN, SG, JP, IT & 16+ more
SaxoInvestor, SaxoTraderG, SaxoTraderPRO
Trade 19,000+ international stocks on global exchanges with brokerage fees as low as $5. Low-risk account is also available for beginners.
OFFER
Tiger Brokers
SGX stocks: $1.99
US stocks: $1.99
Stocks, ETFs, Options, Futures
SG, US, HK, CN, AU
Tiger Trade
Sign up and enjoy unlimited zero commission trades for US stocks for 180 days. T&Cs apply.
OFFER
moomoo
SGX stocks: $0.99 per order
US stocks: $0.99 per order
Stocks, ETFs, Funds, Futures
SG, HK, US, CN, AU
Moomoo
Access Singapore, Hong Kong, US stocks and ETFs with one account. Enjoy free level 2 market data and lifetime commission-free trading on US stocks.
Maybank Kim Eng
SGX stocks: $25
US stocks: $20
Stocks, ETFs, Bonds, CFD
SG, HK, MY, TH, US, UK
Maybank Trade, Maybank Trade +
CFD service. Capital at risk.
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Compare up to 4 providers

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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