Anonymous
VUSA vs VUSD vanguard S&P 500 ETF - which is better?
Hi everyone, I'm intending to use IBKR on either VUSA or VUSD as my first trade. So some newbie questions here:
- Anyone have any idea what's their differences? Besides the fact that one is in GBP and the other in USD. And given how strong USD is these days with the Fed intervention, is VUSA the GBP option more cost efficient?
- Are the dividends reinvested?
- Am I right to say we'll have to convert SGD to either foreign currency before investing?
- Any other fees besides the trading fees?
Thanks a tonne!
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Tan Kel Vin
26 Mar 2020
Financial YouTuber at Kelvin Learns Investing
Comparing side by side in Google Finance, VUSA seems to perform slightly better than VUSD.
VUSA: Listed on US Exchange (30% withholding tax)
VUSD: LIsted on London Exchange (15% withholding tax)
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Maybe IB has low (or no?) currency conversion fee, otherwise use TransferWise. VOO seems the best to me. Most of them distribute. You find anything on justetf.com or etf.com.
Buying SP500 is already a very good choice, otherwise:
ultra-long term buy & hold of broadly diversified, cheap and large, physically replicated passive indexing stock ETFs (complemented by 5-10% physical gold) with periodic (f.ex. quarterly) investing via a cheap online broker and all currency switches made (not by the broker or bank but) by Transferwise seems a sound strategy. Avoid mutual funds/unit trusts at all costs