All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The S&P 500 is the most famous stock index in the world. So much so, when people refer to the US stock market, they’re talking about this index. It’s a mammoth collection of some of the best companies in the world and it’s now easier than ever to invest in the S&P 500 from the UK.
Best S&P 500 ETFs
One of the best ways to invest in the S&P 500 index from the UK is by using an
The table below shows the best-performing S&P 500 ETFs available right now. There’s only slight changes in performance which largely comes down to when each ETF updates the stocks. All S&P 500 ETFs should contain an almost identical selection of stocks.
Icon | Fund | 5-year performance | 1-year performance (to December 2023) | Link to invest |
---|---|---|---|---|
![]() | Xtrackers S&P 500 Swap (XSPX) | 82.02% | 10.33% | Invest with XTBCapital at risk |
![]() | Invesco S&P 500 (SPXP) | 81.84% | 10.19% | Invest with XTBCapital at risk |
![]() | iShares Core S&P 500 (CSP1) | 80.24% | 10.26% | Invest with eToroCapital at risk |
![]() | Vanguard S&P 500 (VUSA) | 80.13% | 10.20% | Invest with XTBCapital at risk |
![]() | SPDR S&P 500 ETF (SPX5) | 79.84% | 10.17% | Invest with IGCapital at risk |
![]() | HSBC S&P 500 (HSPX) | 79.29% | 9.70% | Invest with IGCapital at risk |
Which S&P 500 fund is best?
Rather than looking at slight discrepancies in performance, you’re better off looking for the cheapest S&P 500 ETF or index available on your chosen investing platform.
Because these funds are all copying the same index, there’s no reason you should pay higher fees. Cheap is often best when it comes to investing in passive S&P 500 tracker-funds. S&P 500 funds are passively managed (rather than actively managed), so you don’t get any added benefit by using a specific brand or fund.
It’s also going to be worthwhile ensuring your share dealing account charges low (or no) commission for investing in the S&P 500 through a fund.
How to invest in the S&P 500 from the UK
There are 2 main ways to invest in the S&P 500 – the first is to buy shares in all 500 companies at the same weightings as they have in the index, then constantly keep up to date with changes to the index and rebalance your portfolio. This can be very time consuming and expensive.
The preferable option, which saves you time and money, is to invest in an S&P 500 fund (like an ETF). Essentially, someone else does the above for you and all you have to do is choose one to invest in. Here’s how to do it:
- Find an S&P 500 index fund or ETF. We have some examples of S&P 500 funds at the top of this page as well as information on how to choose an S&P 500 index fund.
- Open a share dealing account. In order to invest in an S&P 500 fund, you’ll need to open an investment account that offers index funds. Keep in mind that some index funds may only be available on certain brokerages or platforms – we’ve listed some S&P 500 index funds and platforms that offer them above.
- Top up your account. You’ll need to deposit funds into your account to invest. Some platforms charge you deposit fees and you may need to pay a foreign exchange fee in order for your pounds to be converted into US dollars.
- Buy the S&P 500 fund. Once your money has been deposited, you can then buy your chosen S&P 500 index fund. You’ll generally pay a small annual fee to invest in an ETF or index fund.
The whole process can take as little as 15 minutes. You’ll need a smartphone or computer, an internet connection, your passport or driving licence and a means of payment.
How to choose an S&P 500 index fund
Some S&P 500 index funds and ETFs 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.
When you choose to invest in an S&P 500 fund, you’re not necessarily looking for the one that performs best. Each one aims to match the performance of the S&P 500 index, so they should all mirror the performance of the index.
As S&P 500 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 or ETF, 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 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 50p 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 funds shouldn’t diverge too much, there are some that have performed slightly better than others over time. Also, investment companies need to pay royalties to have “S&P” in the title of its fund, so some will avoid this by calling it something like the “US 500” fund.
What is the S&P 500?
The S&P 500 (Standard and Poor’s 500) is an index made up of 500 leading public companies in the US. The Standard and Poor’s (S&P) name comes from the merger of 2 financial data companies: Poor’s Publishing and the Standard Statistics Company.
The index contains some of the most recognisable companies in the world and when people talk about the “US stock market” they’re often referring to the S&P 500 because this has become a key measure of the US economy and gives a snapshot into its overall health.
The companies in the index are hand-picked by the US Index Committee. Contrary to popular belief, it’s not just the 500 biggest US stocks. There’s some basic criteria to allow a company to be eligible to be part of the S&P 500 — it must be a US company, have a market capitalisation of at least USD $12.7 billion, be highly liquid, have a public float of at least 10% of its shares outstanding and its most recent quarterly earnings and the sum of its trailing 4 consecutive quarterly earnings must be positive.
- Energy
- Materials
- Industrials
- Consumer discretionary
- Consumer staples
- Healthcare
- Financials
- Information technology
- Communication
- Real estate
- Utilities
There’s some basic criteria to allow a company to be eligible to be part of the S&P 500 — it must be a US company, have a market capitalisation of at least USD $11.8 billion, be highly liquid, have a public float of at least 10% of its shares outstanding and its most recent quarterly earnings and the sum of its trailing 4 consecutive quarterly earnings must be positive.
The Standard and Poor’s (S&P) name comes from the merger of 2 financial data companies: Poor’s Publishing and the Standard Statistics Company. S&P created an index compiled of 90 companies, later expanding it to 500.
Latest updates
Our experts keep on top of the markets to bring you the latest on what's shaking up stock prices.
24 November 2023: The Thanksgiving period is historically a positive one for the S&P 500 index, performing well during this week 80% of the time and it looks like this year will be no different.
16 November 2023: After a few positive trading sessions, the S&P 500 index is gaining momentum and breaking out of correction territory after rallying for 8 straight days as the possibility of lower interest rates sinks in.
Can I invest in the S&P 500 from the UK?
Yes! There are several ways you can invest in the S&P 500 from the UK. You can buy stocks in the companies that make up the S&P 500 or buy an index fund, mutual fund or ETF that tracks the overall performance of the S&P 500 index.
Platforms where you can invest in the S&P 500
These trading apps allow you to invest in S&P 500 stocks directly, companies or invest in and S&P 500 funds (like an ETF).
- Commission-free trades
- Receive dividend payments
- Invest in fractional shares
- 13,000+ shares to invest in
- Choose from over 5,000 ETFs
- Exclusive out-of-hours trading
- 0% commission on trades
- Choose from 3000+ stocks
- Real-time live pricing
What S&P 500 funds can I buy in the UK?
There are more than 100 S&P 500 index funds and ETFs listed on the London Stock Exchange (LSE) that you can invest in from the UK, 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.
What is the UK equivalent of the S&P 500?
The S&P 500 tracks the performance of 500 leading companies on US stock exchanges, and it’s the most popular US stock index. The equivalent of the S&P 500 in the UK is the FTSE 100, which tracks the performance of the 100 largest companies on the London Stock Exchange.
Like the S&P 500, the FTSE 100 is also used as a general yardstick to measure the relative health and performance of the UK stock market and wider economy.
How to invest in S&P 500 stocks
If you don’t want to invest in a fund then you can buy individual S&P 500 stocks.
- 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.
- 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.
- Find a stock you want to invest in. Research some of the shares you’re interested in and find it on your chosen platform. We’ve listed some of the largest stocks on the index below.
- Choose how much you want to invest or how many shares you want. The platform should tell you how much this will cost you.
- 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 share purchase. Some of the stocks in the S&P 500 are also valued in the 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 an index fund or ETF that tracks the performance of the S&P 500.
What stocks are in the S&P 500?
We’re not going to bore you by listing all 500 stocks in the S&P 500. Instead, here are the current top 10 S&P 500 stocks by market cap (as of November 2023). With most S&P 500 funds, the bulk of your investment will go to these top holdings:
- Apple (AAPL)
- Microsoft (MSFT)
- Amazon (AMZN)
- NVIDIA (NVDA)
- Alphabet Class A (GOOGL)
- Tesla (TSLA)
- eBay (EBAY)
- Meta Platforms (META)
- Berkshire Hathaway (BRK.B)
- Exon Mobil (XOM)
- UnitedHealth Group (UNH)
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. It’s one of the best (and simplest) ways to get exposure to the US economy as an investor.
If you only invest in stocks on the London Stock Exchange (LSE), you’ll be limiting your options. Investing in an S&P 500 index fund or accessing the US stock market to invest in stocks listed on the S&P 500 will help to diversify your portfolio internationally.
How much does it cost to invest in the S&P 500?
There are a couple of fees to keep in mind if you plan to invest in US stocks – the commission fee (the cost of carrying out the trade), and the foreign exchange or FX fee (which is the cost of changing your money over to US dollar). Here are some of the costs of buying US stocks with major brokers:
Platform | Fee for a US trade | Foreign exchange fee |
---|---|---|
Degiro | €0.50 (£0.43) + $0.004 per share | 0.1% |
eToro | £0 | 0.5% |
Freetrade | £0 | 0.45% |
Hargreaves Lansdown | £11.95 | 1% |
IG | £10 | 0.5% |
Stake | £0 | 0.5% |
Trading 212 | £0 | 0.15% |
Fineco | $3.95 (£2.98) | 1% |
The most expensive part of buying US stocks is the foreign exchange fees. Compare the fees for the providers that have the lowest foreign exchange fee, even if they’re not commission free, to work out whether it might work out cheaper to go with another provider.
Expert comment: Is the S&P 500 index overpriced?

The S&P 500 contains plenty of growth-oriented companies that tend to trade at higher multiples than other stocks. So many analysts who compare the S&P 500 to something like the FTSE 100 will tell you that the S&P 500 index is overvalued and will likely fall to a more reasonable level. This makes sense. The problem is that analysts have been saying this for years.
Although the flagship index from the US tends to see greater volatility and bigger falls when things turn sour, it’s also proven over long periods that it can make back lost ground (and then some), leaving other international markets in its dust. Unless the US becomes less important to the global economy, paying a premium to invest in many of its best stocks sounds reasonable.
Pros and cons of investing in the S&P 500
Pros
- Access some of the largest US stocks
- Investing in the index provides a degree of automatic diversification
- You can invest with ETFs and funds
- By tracking an index rather than actively picking stocks, you can invest passively which is often cheaper
Cons
- Not completely diversified — it only includes US stocks
- Foreign exchange (FX) fees might apply if you buy individual S&P 500 stocks
- Market cap weighting means most of your investment goes to the top stocks
- You get no control over the investments in an S&P 500 fund
Bottom line
Home to Disney, Amazon, Apple, Tesla, and much more – the S&P 500 is made up of top US companies. It’s understandable why investors want to get a piece of the action. Take some time to consider how you want to invest – are there specific S&P 500 stocks you want to buy, 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 likely be a foreign exchange (FX) fee on top of any commission. If you buy an S&P 500 fund or ETF in GBP denomination, you can avoid this. Investing in the S&P 500 is a decent way to get exposure to the US stock market with a single investment, but remember to think about how this fits in with the rest of your portfolio.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Expert comment: Instacart IPO

Instacart had a strong start to trading, with the share price breaking the $40 mark, thanks to the recent success of Arm's IPO, with investor sentiment beginning to turn from sour to sweet after a long IPO drought.
This valuation could still provide a bargain investment opportunity, considering that Instacart was valued at $39bn back in 2021 just a couple of years ago. So, the market could be valuing Instacart at its cheapest, compared to something like Deliveroo, which was valued at $10bn (possibly its peak), before tumbling to a valuation 5 times smaller than it was at its IPO.
Instacart has managed to capture over 50% of America's online grocery delivery market share. While plenty of companies and apps focus on takeaways, online grocery delivery is a larger overall market in the US. Analysts predict Instacart could swallow up even more of this market if it continues to grow.
This comment may be republished with a link to this page
Press enquiries
Comparing 5 major indices
The Nikkei 225 is the best performing index of 2023 so far.
The Hang Seng is the worst performing index of 2023, having a lower value than the start of 2023 since the 3rd of May (market day 83).
The FTSE 100 has been around the same value as the start of 2023 for most of the year.

All the content may be republished with a link to this page
Press enquiries
Latest news on global markets

S&P 500 slides as Powell says interest rates will be “higher than anticipated”
US shares sold off sharply on Tuesday night, after comments from Fed chair Jerome Powell argued why interest rates may need to be higher for longer.
Read more…
S&P 500 reaches 5-month high as tech shares rally
The S&P 500 gains off the back of Meta, Apple, Amazon and Alphabet’s latest results.
Read more…
S&P 500 snaps winning streak ahead of the next Fed update
Stocks snapped a strong January rally as investors look towards a busy week on the market.
Read more…More guides on Finder
-
How to buy Casper Sleep shares
Ever wondered how to buy shares in Casper Sleep? We explain how and compare a range of providers that can give you access to many brands, including Casper Sleep.
-
How to buy Lowe’s Companies shares
Ever wondered how to buy shares in Lowe’s Companies? We explain how and compare a range of providers that can give you access to many brands, including Lowe’s Companies.
-
How to buy John Wiley & Sons shares
Ever wondered how to buy shares in John Wiley & Sons? We explain how and compare a range of providers that can give you access to many brands, including John Wiley & Sons.
-
How to buy DraftKings shares
Ever wondered how to buy shares in DraftKings? We explain how and compare a range of providers that can give you access to many brands, including DraftKings.
-
How to buy SpartanNash Company shares
Ever wondered how to buy shares in SpartanNash Company? We explain how and compare a range of providers that can give you access to many brands, including SpartanNash Company.
-
How to buy Xtrackers FTSE 100 Income UCITS ETF 1D
Ever wondered how to invest in XUKX ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy iShares Core MSCI Japan IMI UCITS ETF USD Acc
Ever wondered how to invest in SJPA ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy Lyxor Core MSCI Japan DR UCITS ETF Daily Hedged to GBP Acc
Ever wondered how to invest in LCJG ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy SPDR FTSE UK All Share UCITS ETF Acc
Ever wondered how to invest in FTAL ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.
-
How to buy Franklin FTSE United Kingdom ETF
Ever wondered how to invest in FLGB ETF? Learn more about it now and find out where you can invest in it. Compare ETF brokers to start investing today.