How to invest in S&P500 in Singapore

If you had bought the S&P500 during the 2008 crash and held onto it till now (Jan 2023), you would have been seating on a 456.82% gain, even after the markets tanked!

Today, Singapore investors are spoilt for choice when it comes to investing in the S&P500. Here, we share how you can invest in the S&P 500 in Singapore, the Best S&P 500 ETFs for Singaporeans and more.

What is the S&P 500?

The S&P 500 index is a stock market index that tracks the performance of 500 large companies listed on US stock exchanges. The index is weighted by market capitalization, so the larger companies have a greater impact on the overall performance of the index.

As the saying goes, “If you cannot beat the index, buy the whole index!”

Alas, you cannot buy the index directly. Instead, you do so using index funds.

How to buy S&P 500 ETF in Singapore?

Step 1: Choose the type of investment vehicle you prefer

You can invest in the S&P500 index through unit trusts or ETFs. (we compared all the S&P500 ETFs in a table below)

Today, ETFs are more readily available and their prices fluctuate during the active trading hours.

Comparatively, unit trusts may only update prices once a day.

Step 2: Choose market you wish to invest in

As a popular market index, there are many S&P500 ETFs listed across different exchanges which I have listed in the section above.

If you are not comfortable investing in overseas markets, then your only option would be the S27 SPDR S&P500 ETF that is listed on SGX.

If you already have a brokerage account and wish to handle all your investments in the same place, then you can narrow down your choice of markets based on what your current broker offers.

Do take note of the trading currency as it could expose you to currency exchange risks.

Step 3: Select your broker

Different brokers offer access to different range of ETFs with varying fees. We have compiled the best brokers in Singapore.

Step 4: Fund account and start investing

Once you have selected your broker, simply open an account, deposit your capital in and start investing.

Your broker should provide exact instructions on how you can fund your account and place your buy orders.

At the point, you might be wondering how to choose the best way to invest in the S&P500, here’re three factors to consider.

How to choose the Best S&P 500 ETF for your needs?

Each investor is unique, here’s how you can choose the best S&P500 ETF for yourself.

i) Expense Ratio

The expense ratio is basically the fees that the ETF manager charges, this should be as low as possible.

Index ETFs tend to be passively managed and have a lower expense ratio that actively managed ETFs.

ii) Liquidity

How much ETFs are being bought and sold daily. It is better to invest in ETFs with higher liquidity to make sure that you can sell your positions whenever you need to. Your buy or sell transaction may take several days to be filled when investing in ETFs with extremely low liquidity.

iii) Dividend Withholding Tax

This is the tax that you would have to pay depending on where the ETF is listed, and whether you are in a country that has a tax treaty.

Singaporeans investing in the US markets are liable to a 30% withholding tax on their dividends. This means for every $100 dividend you get from stocks or investments in the US markets, only $70 reaches you.

Comparatively, there is no dividend withholding tax in the Singapore markets. Hence, you get 100% of your dividend payouts from sto

The Irish have a tax treaty with the U.S. and are subjected to a discounted dividend withholding tax of 15%. Investing in Ireland domiciled ETFs means that you get to enjoy the discounted rate as a Singapore investor.

For a list of dividend withholding tax across different stock exchanges, refer to our short guide on dividend withholding taxes.

Best S&P 500 ETFs For Singaporeans

ETF Name	Ticker	Fund Manager	Expense Ratio (Annual)	AUM (USD)	Domicile	Why This ETF?	Exchange & Currency
SPDR S&P 500 ETF	S27	State Street Global Advisors	0.0945%	$353.2B	US	Listed in Singapore	Singapore Stock Exchange (USD)
SPDR S&P 500 ETF	SPY	State Street Global Advisors	0.0945%	$353.2B	US	The O.G. the oldest and largest S&P 500 ETF	New York Stock Exchange (USD)
SPDR Portfolio S&P 500 ETF	SPLG	State Street Global Advisors	0.03%	$14.7B	US	One of the cheapest S&P 500 ETF	New York Stock Exchange (USD)
Vanguard S&P 500 ETF	VOO	Vanguard	0.03%	$262.3B	US	One of the cheapest S&P 500 ETF	New York Stock Exchange (USD)
iShares S&P 500	IVV	Blackrock	0.03%	$290.2B	US	One of the cheapest S&P 500 ETF	New York Stock Exchange (USD)
SPDR S&P 500 UCITS ETF (Dist)	SPY5	State Street Global Advisors	0.09%	$4.98B	Ireland	Lower dividend withholding taxes	London Stock Exchange (GBP/USD), SIX Swiss Exchange (CHF), Deutsche Börse (EUR), Borsa Italiana (EUR), Euronext Paris(EUR)
Vanguard S&P 500 UCITS ETF (Dist)	VUSD	Vanguard	0.07%	$33B	Ireland	Lower dividend withholding taxes	London Stock Exchange (GBP, USD), SIX Swiss Exchange (CHF), NYSE Euronext (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR)
iShares Core S&P 500 UCITS ETF (Dist)	IUSD	Blackrock	0.07%	$11.8B	Ireland	Lower dividend withholding taxes	London Stock Exchange (GBP, USD), SIX Swiss Exchange (USD), Euronext Amsterdam (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR), Bolsa Mexicana De Volares (MXN)
iShares Core S&P 500 UCITS ETF (Acc)	CSPX	Blackrock	0.07%	$51.2B	Ireland	Lower dividend withholding taxes	London Stock Exchange (GBP, USD), SIX Swiss Exchange (USD), Euronext Amsterdam (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR), Bolsa Mexicana De Volares (MXN), Tel Aviv Stock Exchange (ILS)

To learn how to invest in ETFs, refer to our beginners guide here, or read on to learn about the different S&P 500 ETFs available to you as a Singapore investor.

SPDR S&P 500 ETF (S27)

SPDRs conveniently known as “spiders” (due to its abbreviation) actually stands for Standard & Poor’s Depository Receipts.

The SPDR S&P500 ETF (S27) is listed on the Singapore exchange, denominated in US$.

Counter name: SPDR S&P500 ETF
Board Lot Size: 1
Currency: USD
Total Expense Ratio: 0.0945% p.a.
Listed on Singapore Exchange
Issuer: State Street Global Advisors
Domicile: US

How to buy SPDR S&P 500 ETF in Singapore?

As it is listed on the SGX, you can buy S27 on local brokers that allow you access to the Singapore markets.

Advantages

You can invest in the S&P500 easily through most brokers in Singapore via S27, you do not need to have a US trading account nor access to the US stock markets in order to start investing in the S&P500 using this.

Another advantage is that you can invest in S27 during SGX’s active trading hours instead of waiting for the US markets to open. (the downside of this is that the price may not reflect the S&P500 price exactly)

Disadvantages

Although it is listed on the Singapore exchange, do note that SPDR S&P500 ETF (S27) is still subject to 30% dividend withholding tax as it is domiciled in the US.

SPDR S&P 500 ETF (SPY)

The SPY ETF tracks the S&P500 index. Like the S27, it is managed by SPDR.

Counter name: SPDR S&P500 ETF (SPY)
Board Lot Size: 1
Currency: USD
Total Expense Ratio: 0.0945%p.a.
Listed on New York Stock Exchange (NYSE)
Issuer: State Street Global Advisors
Domicile: US

How to buy SPY ETF in Singapore?

You can buy the SPY ETF through brokers that offer access to ETFs listed on the US markets. Some examples include FSMOne, Saxo and Interactive Brokers.

It is also worth noting that the SPY was launched in 1993 and is one of the first ETFs in the US. Hence, it has the largest AUM and best liquidity, although it has a higher expense ratio.

SSGA had launched a newer, low cost SPDR Portfolio S&P 500 ETF (SPLG) in 2005 to compete with Vanguard and Blackrock. The SPLD offers a lower expense ratio of 0.03% but has significantly lower liquidity and AUM.

Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF (VOO) tracks the S&P500 and is popular among investors due to its low cost.

Counter name: Vanguard S&P 500 ETF (VOO)
Board Lot Size: 1
Currency: USD
Total Expense Ratio: 0.03%p.a.
Listed on New York Stock Exchange (NYSE)
Issuer: Vanguard
Domicile: US

How do I buy Vanguard S&P 500 ETF in Singapore?

You can buy the Vanguard S&P 500 ETF in Singapore via brokers that offer access to ETFs listed on the US markets. Some examples include FSMOne, Saxo and Interactive Brokers.

iShares S&P 500 (IVV)

iShares S&P500 ETF also tracks the S&P500 Index. Like VOO, the IVV is also a low cost ETF.

Counter name: iShares S&P 500 (IVV)
Lot Size: 1
Currency: USD
Total Expense Ratio: 0.03% p.a.
Listed on New York Stock Exchange (NYSE)
Issuer: Blackrock
Domicile: US

How do I buy iShares S&P 500 ETF in Singapore?

You can buy the iShares S&P 500 ETF in Singapore via brokers that offer access to ETFs listed on the US markets. Some examples include FSMOne, Saxo and Interactive Brokers.

SPDR S&P 500 UCITS ETF (SPY5)

The SPDR S&P 500 UCITS ETF is an Ireland domiciled ETF that’s listed on various stock exchanges across UK.

UCITS aka “Undertakings for the Collective Investment in Transferable Securities” is another name for investment funds regulated at European Union level. These usually refer to ETFs listed in the UK.

Counter name: SPRD S&P 500 UCITS ETF (SPY5)
Board Lot Size: 1
Base currency: USD
Trading Currency: USD, GBP, EUR, CHF
Total Expense Ratio: 0.09%p.a.
Listed on Deutsche Börse (EUR), London Stock Exchange (GBP/USD), Borsa Italiana (EUR), SIX Swiss Exchange (CHF), Euronext Paris(EUR)
Issuer: State Street Global Advisors
Domicile: Ireland
ETF Type: Distributing

Vanguard S&P 500 UCITS ETF (VUSD)

The Vanguard S&P 500 UCITS ETF is an Ireland domiciled variation of Vanguard’s S&P500 ETF that’s listed on various stock exchanges across UK.

Counter name: Vanguard S&P 500 UCITS ETF (VUSD)
Board Lot Size: 1
Base currency: USD
Trading Currency: USD, GBP, EUR, CHF
Ongoing Charges Figure (OCF) aka Total Expense Ratio: 0.07%p.a.
Listed on London Stock Exchange (GBP, USD), SIX Swiss Exchange (CHF), NYSE Euronext (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR)
Issuer: Vanguard
Domicile: Ireland
ETF Type: Distributing

iShares Core S&P 500 UCITS ETF – Distributing (IUSD)

The iShares Core S&P 500 UCITS ETF (IUSD) is an Ireland domiciled version of the iShares S&P 500, managed by Blackrock.

Counter name: iShares Core S&P 500 UCITS ETF (IUSD)
Board Lot Size: 1
Base currency: USD
Trading Currency: USD, GBP, EUR
Total Expense Ratio: 0.07%p.a.
Listed on London Stock Exchange (GBP, USD), SIX Swiss Exchange (USD), Euronext Amsterdam (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR), Bolsa Mexicana De Volares (MXN)
Issuer: iShares plc
Domicile: Ireland
ETF Type: Distributing

iShares Core S&P 500 UCITS ETF – Accumulating (CSPX)

The iShares Core S&P 500 UCITS ETF (CSPX) is an Ireland domiciled version of the iShares S&P 500, managed by Blackrock. Do note that the CSPX is an accumulating ETF (more on this below)

Counter name: iShares Core S&P 500 UCITS ETF – Accumulating (CSPX)
Board Lot Size: 1
Base currency: USD
Trading Currency: USD, GBP, EUR, MXN, ILS
Total Expense Ratio: 0.07%p.a.
Listed on London Stock Exchange (GBP, USD), SIX Swiss Exchange (USD), Euronext Amsterdam (EUR), Deutsche Boerse (EUR), Borsa Italiana S.p.A. (EUR), Bolsa Mexicana De Volares (MXN), Tel Aviv Stock Exchange (ILS)
Issuer: iShares plc
Domicile: Ireland
ETF Type: Accumulating

Distributing vs Accumulating ETFs

Most ETFs that track market indices like the S&P500 would pay out dividends received from the underlying assets, on a regular basis. These are termed as distributing ETFs.

On 2010, iShare released the CSPX ETF which is an accumulating ETF. As its name suggests, accumulating ETFs do not pay out dividends to its shareholders. Instead, the managers would reinvest your dividends back into the fund, with no additional expenses.

This would allow the value of your ETF holdings to grow faster over time.

If you like the idea of compounding your money, the latter may be a good option for you because you don’t have to manually reinvest your dividends for a fee.

Do note that both distributing and accumulating Ireland-domicile ETFs are subject to 15% dividend withholding taxes. This are charged to the ETF managers when the underlying assets payout dividends.

What are Ireland-Domiciled ETFs?

Ireland-domiciled ETFs are ETFs that are registered and regulated in Ireland. They offer investors a convenient way to invest in a range of global markets, including the US, Europe and Asia Pacific, through a single investment. Ireland-domiciled ETFs are under the US/Ireland tax treaty and are subject to a 15% dividend withholding tax (instead of the usual 30%).

Singapore investors do not have to pay taxes on dividends from UK listed ETFs and hence can enjoy the 15% tax rate if we invest in Ireland-domiciled ETFs.

However, do note that Ireland-domiciled ETFs tend to come with a higher expense ratio. Hence you have to decide if a higher expense ratio is worth the savings on the dividend tax.

Lion Global Infinity U.S. 500 Stock Index Fund

(Note that this is a unit trust instead of an ETF, hence it is not in the table above.)

Lion Global Investors Limited has liaised with Vanguard to offer Infinity U.S. 500 Stock Index Fund which is a feeder fund in the Vanguard U.S. 500 Stock Index Fund. This gives Singaporeans a valuable chance to invest in Vanguard’s managed funds.

US calls it mutual fund whereas in Singapore, it is known as Unit Trust.

How to buy the Infinity U.S. 500 Stock Index Fund?

Singaporeans can buy the Infinity US 500 stock index fund as a unit trust under CPF or SRS. You can also gain exposure via brokers like FSMOne.

However, due to the structure of this fund, there are two tiers of fees that you will be paying.

As an investor, you are charged:

Preliminary charge: 2%

The fund expenses are:

Annual Expense Ratio: 0.67%

As a sub-fund, the following charges are paid to the main fund manager:

Management Fee: 0.475% p.a.
Annual Trustee Fee: 0.02% p.a. of the Net Asset Value on the first S$100 million and below, and 0.018% p.a. of the Net Asset Value above the first S$100 million.
Ongoing charges: 0.1% p.a.

So which is the right choice for me?

It really depends on your needs.

ETFs are convenient to buy and sell as you can trade them like stocks. If you plan to invest a lump sum, you can do so easily.

However, if you intend to buy a small amount on a regular basis, using the dollar-cost-averaging method, then you’ll have to be mindful of the cost of brokerage fees incurred each time you buy.

If your broker charges a minimum of $25 per transaction, the cost can easily eat up a significant amount of your DCA capital. In this case, it will be beneficial to look for institutions that have regular investment plans as the charges will definitely be more reasonable.

We listed the Best ETF Monthly Investment Plans in Singapore here.

That said, there are downsides to investing in the S&P500 index as well. Since the S&P500 focus on large listed companies in the US, this means that you will not be exposed to fast growing young companies or non-US listed companies. If you wish to expose your portfolio further, you would have to explore other ETFs.

In addition, the S&P500 index provides market returns to investors. This is great for investors who don’t want to put in too much work to monitor their portfolio. However, if you wish to beat the markets, the S&P500 ETFs may not be sufficient. Instead, you could do better by learning to pick stocks.

You can start here:

Frequently Asked Questions

How to dollar cost average (DCA) into the S&P500?

If you are planning to dollar cost average, you can either do it manually by buying the ETF on a regular interval. Or, set up an automatic regular savings plan.

We listed the Best ETF Monthly Investment Plans in Singapore here.

If you’re not sure whether you should DCA or do lump sum investing, we shared the differences here.

S27 vs SPY: which SPDR S&P 500 ETF is better?

If you’ve been doing your research, you would have noticed that the S&P 500 ETF is also listed on SGX under the ticker, S27. You’re probably be wondering which is a better option for you.

Truth is, they are pretty similar – both are managed by SSGA, trade in USD and are subjected to the 30% dividend withholding tax. However, there is one key difference you should note as a Singaporean investor: you can buy S27 using SRS, but not SPY.

On top of that, you should note that the trading volume for S27 is way lower than that of SPY. And if you’re just starting out, SPY can be purchased in smaller quantities than S27.

Here’s a quick comparison of S27 vs SPY:

	S27	SPY
Fund Manager	State Street Global Advisors	State Street Global Advisors
Tracks	S&P 500	S&P 500
Exchange	SGX	NYSE
Trades in	USD	USD
AUM (USD)	$326.3B	$330.7B
Expense Ratio	0.0945%	0.0945%
Dividend Withholding Tax	30%	30%
Minimum Board Lot Size	10 units	1 unit
Average Trading Volume	500	102,547,526
How to buy?	Cash or SRS fund	Cash

How can I buy US index funds in Singapore?

You can buy the US index funds in Singapore via brokers that offer access to US index funds listed on various markets. You’ll want to look out for brokers that give you access to at least these two markets: SGX, NYSE.

Does SPY pay dividends?

Yes it does.

And so does all the other S&P 500 ETFs listed above. However, you should note that the Irish-Domiciled ETFs come in ‘Distributing’ and ‘Accumulating’ variations. The former will pay out dividends to you while the latter will accumulate and reinvest the dividends for you without additional cost.

What are Index Funds?

Index funds lets investors track the performance of a specific index without having to purchase all of the underlying stocks. By buying an index fund, you can gain exposure to a broad range of stocks at a relatively low cost. Additionally, index funds are often considered to be more stable than individual stocks, making them a desirable investment for risk-averse investors.

Index funds have been widely available for a long time in US and Vanguard is the leading index fund provider. John Bogle who founded Vanguard is a strong believer that the Index is hard to beat in the long run.

What are ETFs?

Exchange Traded Funds (ETFs) are similar to index funds, but they trade like stocks on a stock exchange. This means that you can buy and sell ETFs throughout the day, giving you more flexibility than with traditional index funds. Additionally, ETFs typically have lower fees than index funds.