The S&P 500 is a US stock market index made up of 500 of the largest publicly listed companies in the United States. UK investors can invest in the S&P 500 by buying an ETF that tracks the index.
This guide explains what the S&P 500 is, why UK investors use it, how S&P 500 ETFs work, which account types you can use and the main risks to consider.
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. This article is for general information only and is not personal advice.
How to invest in the S&P 500 from the UK: quick answer
You cannot invest directly in the S&P 500 index. You can invest in an ETF that aims to track it.
| Step | What to do |
|---|---|
| 1 | Choose an S&P 500 ETF |
| 2 | Choose an account, such as an ISA, SIPP, GIA or Business Account |
| 3 | Decide whether to invest a lump sum or regularly |
| 4 | Check costs, currency exposure and concentration risk |
| 5 | Make sure it fits your wider portfolio |
What is the S&P 500?
The S&P 500 is a US stock market index made up of 500 large US-listed companies. It covers a large share of the US equity market and is often used as a barometer for the US economy.
It includes companies across sectors such as:
- Technology
- Healthcare
- Financials
- Consumer goods
- Industrials
- Communication services
The S&P 500 gives broad US exposure, but it is not globally diversified. Investors should think about how US exposure fits with the rest of their portfolio.
Why UK investors choose the S&P 500
UK investors often use S&P 500 ETFs because they offer:
- Exposure to large US companies
- Access to sectors such as technology, healthcare and financials
- A passive, index-tracking approach
- Low ongoing ETF costs
- The ability to invest through an ISA, SIPP, GIA or Business Account
- A potential core holding for long-term investors
Past performance is not a reliable indicator of future returns.
S&P 500 ETFs available on InvestEngine
Examples of S&P 500 ETFs include:
| ETF | Ticker | Ongoing charge |
|---|---|---|
| Vanguard S&P 500 | VUAG | 0.07% |
| SPDR S&P 500 | SPXL | 0.03% |
| Invesco S&P 500 | SPXP | 0.05% |
ETF costs and details can change, so check the latest fund information before investing.
ETFs featured above may include paid partners.
How to invest in the S&P 500 with InvestEngine
InvestEngine is a UK-based ETF investing platform, authorised and regulated by the Financial Conduct Authority, built for long-term investors who want to create DIY ETF portfolios.
With InvestEngine, you can buy and sell S&P 500 ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
You can invest through:
- A Stocks and Shares ISA
- A Self-Invested Personal Pension
- A General Investment Account
- A Business Investment Account
How it works
- Create an InvestEngine account
- Choose your account type
- Search for the S&P 500 ETF you want
- Choose how much to invest
- Set up a one-off investment or regular Savings Plan
Risks of investing in the S&P 500
- Market risk: the index can fall in value.
- Currency risk: underlying companies and many ETFs are exposed to the US dollar.
- US concentration: the S&P 500 is limited to US-listed companies.
- Sector concentration: the index can be heavily influenced by large technology companies.
- Valuation risk: expensive markets can increase downside risk.
- Short-term volatility: the S&P 500 can move sharply over shorter periods.
FAQs
Can UK investors buy the S&P 500?
UK investors cannot buy the index directly, but they can buy ETFs that track the S&P 500.
Can you hold an S&P 500 ETF in an ISA?
Yes. Eligible S&P 500 ETFs can be held in a Stocks and Shares ISA.
Does InvestEngine charge dealing fees for S&P 500 ETFs?
InvestEngine charges 0% dealing fees for buying and selling ETFs. DIY portfolios also have 0% platform fees. ETF costs apply.
Is the S&P 500 globally diversified?
No. The S&P 500 gives broad US exposure, but it is not a global index.
In summary
The S&P 500 gives UK investors a way to access 500 large US-listed companies through one ETF. It can be a useful long-term holding, but investors should understand US concentration, currency risk and market volatility.
Capital at risk. ETF costs apply. Tax treatment depends on your personal circumstances and may change in future. This communication is for general information only and does not constitute personal advice.