Asked by Joel Pang

S&P 500 ETF and Funds? What is the difference and which and where to buy?

Been trying to read up throughout this forum on the S&P 500 before I start investing into it and stumbled across both the Fund and ETF. Seems like ETF is more preferred due to the prices and costs involved while Fund requires tracking and Timing? Also there still seems to be so many ways to purchase the S&P 500, anyone has comments on the most cost effective way to start with a small capital?

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  • Yu Qian, Austin
    Yu Qian, Austin
    Level 1. Freshie
    Answered on 14 Mar 2019

    In Singapore, there is an index fund : lion global infinity US 500 stock index fund, either SGD or USD. It is said to track SP 500 in USA. Domicile is in Singapore. Fee is around 0.45% (can’t remember exactly, sorry) You may try to buy it from broker (online brokers fundsupermert, DollarDex, etc impose lower fees or no fees). Buying patten can be one time (if you time the market) or Make it as Regular Plan ( just giro by authoring the broker)

    Happy researching.

    Also, previous comment to buy from Ireland is worth considering too. You will just need to consider 1. Fund fees 2. Broker convenience and fees 3. Capital gain tax 4. If not in SGD, there is a currency risk

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  • Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered on 14 Mar 2019

    There are not much index funds for us. I would recommend getting the S&P 500 ETF from the london stock exchange such as CSPX and VUSA. They are ireland domiciled which means the usual US withholding tax on dividends will be reduced from 30% to 15%. You can buy them with Standard Chartered or any brokers that have london stock exchange.

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