What is the Best S&P 500 ETF to Buy?

Рет қаралды 24,117

Күн бұрын

One of the most popular and more accessible ways to gain exposure to the U.S. market is through the S&P 500. Historically, the S&P 500 has returned an impressive average annualized return of over 10% over the last 20 years.
Among the various ways to invest in the S&P 500, the SPDR S&P 500 ETF (SPY) stands out as a popular choice for many investors. It is the largest ETF in the world with assets under management of over US$520 billion. It also has a solid, long track record of delivering returns that closely match the S&P 500 index’s performance, making it a reliable investment option for those looking to invest in the U.S. market.
However, we don't like the SPY due to a few major drawbacks. Instead, we like these few other S&P 500 ETFs instead...
00:00 Introduction
02:39 Why we won't buy SPY
05:35 CSPX/VUAA
10:27 SPY5
12:51 SPLG
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Пікірлер: 145

@alexchandaranbalagan2921 Ай бұрын

Thank you Adam, Rusmin and Victor. This was great as always, looking forward to your next informational recording!

@TheFifthPersonChannel Ай бұрын

You're most welcome, Alex!

@chuajy86 Ай бұрын

V helpful & all-rounded discussion. Thanks! Hopefully there will a video on whether is it better to invest via stock mkt or fund mgr like Endowus..

@64ytb Ай бұрын

Thanks, guys. It’s really so nice of you to educate people like myself on this. I always learn so much from your videos. Keep it up. Just to double check regarding SPLG, are you referring to the etf currently trading at around 62.50 ?

@TheFifthPersonChannel Ай бұрын

Yes, SPLG is currently trading around US$62

@kctan7495 Ай бұрын

Great information, thank you guys

@TheFifthPersonChannel Ай бұрын

Our pleasure!

@yuppyhoo Ай бұрын

Great content. thank you! this solves one of my worries. I am now thinking that I should (over time, as I am not young!) sell individual US stocks and buy ETFs which won't attract estate duties. can you do a feature on such ETFs?

@clgoh7353 Ай бұрын

thank you for sharing and will be looking at the some alternate investment

@TheFifthPersonChannel Ай бұрын

Thanks for watching!

@xjuan7169 Ай бұрын

Great sharing as usual! I learned a lot. Thanks! 😁

@TheFifthPersonChannel Ай бұрын

You're most welcome!

@BlackSwan-sq2iw Ай бұрын

I invest only in Irish domiciled ETFs for my US allocation to avoid the risk of US estate duty and withholding tax. Not just for stock based ETFs but also for bonds ETF.

@maythasatika7301 Ай бұрын

Great sharing as usual. Do you guys have recommendation for irish domiciled version of Total World Stock ETF like vanguard's VT?

@TheFifthPersonChannel Ай бұрын

Thanks! Yes, VWRA

@nirajpavagadhi2085 Ай бұрын

Nice sharing as always! Thanks! Can you please share your view about S27 ( SGX listed S&P 500)

@TheFifthPersonChannel Ай бұрын

Thanks! S27 is listed in Singapore, but it is U.S.-domiciled so you still have the 30% withholding tax and U.S. estate tax.

@nirajpavagadhi2085 Ай бұрын

@@TheFifthPersonChannel thank you for reply and information 🙏

@sockkerchia756 Ай бұрын

Great video as usual. Question - I have been wanting to switch my SPY to CSPX - since both SPY and CSPX mirror SPX, does it make sense to just sell the SPY and immediately use the proceeds to buy the CSPX on the same day ? Similarly, the Ireland Domicile for QQQ would be CSNDX?

@TheFifthPersonChannel Ай бұрын

Depending on your fund size, you can also stagger your transfer from SPY to CSPX. It's really your personal preference. Yes, an Irish-domiciled equivalent for the QQQ would be CNDX. However, the dividend yield for the QQQ is much lower, so you might not save much in terms of withholding tax.

@sockkerchia756 Ай бұрын

@@TheFifthPersonChannel Thanks! I am more concerned with the estate tax re QQQ as well..

@darylyang2209 Ай бұрын

Mayb it will be good to do another video for best broker to buy Irish dom etf every month for DCA

@nttan5864 Ай бұрын

Thanks, this video is so helpful.

@TheFifthPersonChannel Ай бұрын

Glad it was helpful!

@gparamaeswary7276 Ай бұрын

Thank you

@TheFifthPersonChannel Ай бұрын

Welcome!

@jamesmadison3108 Ай бұрын

I lump sum into cspx in year 2022 if i not wrong just because of seeing finance youtubers talking about it. After purchasing, the cspx price drop and i was in a negative for about a year, but i didnt bother, just left it there as they were my extra funds. Come 2024, cspx has now increase almost 30 percent of its price and now i am ahead at 30 percent haha.. Now just thinking whether should do another lump sum.

@TheFifthPersonChannel Ай бұрын

Good to know!

@limkokchien3033 Ай бұрын

Thank you for your information and sharing. If US ETFs and stocks are purchased and held from a joint trading account, if one of them dies, will the other inherit directly without having to pay estate tax?

@TheFifthPersonChannel Ай бұрын

Technically, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485

@micheleblow Ай бұрын

Regarding estate taxes. What are your thoughts about setting up joint brokerage accounts with spouse and/ or children?

@TheFifthPersonChannel Ай бұрын

You could do that so someone else maintains access to your brokerage account. Technically, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485

@Ben-gp5ty Ай бұрын

What about those options offered by Endowus, its more expensive ? I presume its also subjected to dividend withholding and estate taxes like US domiciled.

@TheFifthPersonChannel Ай бұрын

It's best to email Endowus directly to ask about the dividend withholding and estate taxes for their funds.

@iKeelMellow Ай бұрын

Funny how i literally just explained almost word for word what this video covers! Now i can just send my friends this video HAHAHAHA

@TheFifthPersonChannel Ай бұрын

Synchronicity!

@kaliyaperumaldeepan85 Ай бұрын

Does have similar for tech etf ?

@niccccccs 9 күн бұрын

Would SPLG be the best option if you want to do covered calls on your positions over the long run?

@ralphou Ай бұрын

VUAA (smaller price to purchase too) is a gd replica of ......... CSPX

@roupw303 Ай бұрын

What is the fees that we need to look into for IBKR? I look at their pricing examples and need to pay market data fee, round trip trade fee, etc... It could be quite a substantial amount to maintain to hold the ETF.

@TheFifthPersonChannel Ай бұрын

IBKR charges US$1.70 minimum for USD-denominated trades on the London Stock Exchange. Live market data fees are optional. Round trip fees are simply a buy and sell trade, so a round trip trade is simply twice that for a single trade. Hope this helps! www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php

@livvatt6174 Ай бұрын

Hi Adam, Rusmin and Victor, if the US shares are held in a joint account and if one accound holder passes on, would the other account holder be subjected to estate duties?

@TheFifthPersonChannel Ай бұрын

Yes, from what we know, the proportion of assets owned by the deceased in the joint account is still subject to estate tax in the event of passing. money.stackexchange.com/questions/149317/taxes-on-joint-tenants-with-rights-of-survivorship-stock-brokerage-account-upo www.bogleheads.org/forum/viewtopic.php?p=4375485#p4375485

@RexNut Ай бұрын

Good to remind ppl about the US estate duty. For your mentioned non-US domiciled ETF, any consideration which exchange it's on?

@TheFifthPersonChannel Ай бұрын

Thanks! Most Irish-domiciled ETFs are listed on the London Stock Exchange.

@shamusneo89 Ай бұрын

Hi, why wasn't the spread and transaction fees, amount invested each time, brokers (e.g. IBKR) factored in? I figured that would have been more holistic, i think this might potentially skew the decision depending on the different variables?

@TheFifthPersonChannel Ай бұрын

Commissions on IBKR are US$0.35 minimum for NYSE and US$1.70 for LSE. I guess this will matter if you're investing very small amounts each time.

@nonunpepsisingh779 Ай бұрын

1. I use the Superhero app to invest. Can you do a video on this app? E.g. pros and cons. Also, this app only has the Australian and American stocks available. 2. I live in Australia. Can you do a video on the best ETF if I live in Australia?

@Lucas-wn5wm Ай бұрын

How about for sg investors. We DCA spy500 till a targetted amount. Iiquidate it and buy local dividend stocks?

@TheFifthPersonChannel Ай бұрын

Some investors 'de-risk' their portfolio nearer to retirement, and shift from U.S. equities to Singapore dividend stocks, bonds, etc.

@taker12224 Ай бұрын

The accumulating version of SPY5 is SPYL. If I’m investing in long term, is there any real meaningful differences between all these and CSPX?

@TheFifthPersonChannel Ай бұрын

Thank you! The main difference would be fees with SPY5/SPYL at 0.03% and CSPX at 0.07%.

@Mervc88 Күн бұрын

Should I take out my endowus money and put it into cspx

@DinaizThinagaran Ай бұрын

is it similar for QQQ too? in terms of withholding & inheritance/estate tax?

@TheFifthPersonChannel Ай бұрын

The QQQ tracks the Nasdaq-100 which is a different index. QQQ is U.S.-domiciled, so it has a 30% dividend withholding tax and U.S. estate tax.

@64ytb Ай бұрын

BTW, do you guys think that Amazon is a good buy now?

@gunnerstnt01 Ай бұрын

I will still keep it as it still give mw good returns

@TheFifthPersonChannel Ай бұрын

👍👍

@adelineho7643 Ай бұрын

Will ticker symbol "IVV" under Australian Securities Exchange Ltd (ASX) comparable too? Australia-Singapore Tax Treaty dividend income come at 15%, with ETF Management Fee at 0.04% and under Dividend reinvestment Plan (DRIP) too.

@TheFifthPersonChannel Ай бұрын

Yes, if you don't mind holding Australian dollars.

@firstlast5296 Ай бұрын

Hi, great content, i still have no idea after repeat the video and still don understand, as a Singaporean, if spy is to avoid, can you please advise me which etf is able to avoid any fees so that able to pass on to my spouse or child where i am gone. Waiting for your kind reply. Also which broker to use

@edmundsheah4794 Ай бұрын

Vanguard S&P 500 ETF (Ireland Domiciled) that I know: Distributing: VUSD (USD), VUSA (GBP) Accumulating: VUAA (USD), VUAG (GBP)

@Victor_YNWA Ай бұрын

Are there any irish counterparts ETF for FTEC, QQQM, VTV? The holdings Not necessarily have to be the same, at least 80-90% similar will do I have found some, IUIT for FTEC, R1VL for VTV. What do u guys think?. Thx and cheers from Malaysia

@TheFifthPersonChannel Ай бұрын

CNDX for QQQ. Cheers!

@joeyyork4204 Ай бұрын

Which brokerage can we buy CNDX? I tried IBKR but it doesn’t have. Appreciate if anyone can share their experience.. thanks

@sandeepjagadeesh8182 26 күн бұрын

Hello, Thanks for the video. I started investing in VUAA, but now just thinking about it as it is in LSE(UK). I read that there is a 10% capital gains tax in UK, In that case how should we manage the filing of tax. Just worried that it may affect my withdrawal. Thanks

@TheFifthPersonChannel 26 күн бұрын

VUAA is Irish-domiciled; Ireland is not part of the UK. In any case, there is no capital gains tax on UK stocks for non-UK residents: www.gov.uk/capital-gains-tax/what-you-pay-it-on

@sandeepjagadeesh8182 26 күн бұрын

Thanks for the prompt reply

@xuedalong Ай бұрын

How about other CSPX alternatives? UDVD ? GGRW?

@phantommarine29 Ай бұрын

expense ratio is too high for udvd at 0.35% and is dividends are distributing and not accumulating like cspx. Either way both UDVD and GGRW doesn't track S&P 500 so is not a CSPX alternative

@pork6811 Ай бұрын

Would you mind sharing what brokerage the three of you use for your stocks?

@TheFifthPersonChannel Ай бұрын

We have a few accounts: Interactive Brokers, Saxo Markets, FSMOne, Moomoo, Tiger Brokers, etc.

@ashleighwong2594 Ай бұрын

Which is the best broker?

@mindsoulwhisper Ай бұрын

Hi, is lump sum or DCA better for CSPX?

@TheFifthPersonChannel Ай бұрын

It depends on what you prefer. Lump sum investing offers potentially higher returns, but carries the risk of market timing. DCA reduces this risk by spreading investments over time, providing more stability during volatile periods.

@venusv4698 Ай бұрын

Hi, could you give your view about isac?

@TheFifthPersonChannel Ай бұрын

We'll have a look!

@joeyyork4204 Ай бұрын

Which brokerage can we buy CNDX? I tried IBKR but it doesn’t have. Appreciate if anyone can share their experience.. thanks

@TheFifthPersonChannel Ай бұрын

CNDX is listed on the London Stock Exchange which IBKR has access to. You may want to check again. www.interactivebrokers.com/en/pricing/commissions-stocks-europe.php?re=europe

@graceyong5197 Ай бұрын

Hey Team, but if I were to DCA small amounts (100 SGD) every month into S&P500 ETF, would it be advisable to buy US domiciled ETF using brokerage that have free US trade?

@TheFifthPersonChannel Ай бұрын

Hi Grace, at smaller amounts it'd be better to invest quarterly or semi-annually to save on brokerage fees. We'd still go with an Irish-domiciled ETF over a U.S. one.

@DesmondSG Ай бұрын

it's not an ETF but how does Lion Global Infinity U.S 500 Stock Index Fund SGD compare to those you have mentioned?

@TheFifthPersonChannel Ай бұрын

There's an initial charge of up to 2% according to their webpage. It's best to email Lion Global Investors directly to ask about dividend withholding tax and U.S. estate taxes for their funds. www.lionglobalinvestors.com/en/fund.html?officialNav=IUSS#information

@Milomint_has_joy Ай бұрын

I am new to ETF. Would you share about S27, also S&P 500? Thanks

@TheFifthPersonChannel Ай бұрын

S27 is listed in Singapore, but it is U.S.-domiciled so you still have the 30% withholding tax and U.S. estate tax.

@Milomint_has_joy Ай бұрын

@@TheFifthPersonChannel thank you for reply. I am new to US market, if I buy US stock, will US stock also subject to estate tax? Thanks

@TheFifthPersonChannel Ай бұрын

Yes, U.S. stocks are subject to estate tax as well

@ashleighwong2594 Ай бұрын

What is the best to buy and which platform to purchase? This is for non US citizen and plan to do a long term accumulative for 10-15 years. What is best way? Inject monthly a fix amount or now is good to pump in sum like 100k and let it sit

@Jason-ru7xt Ай бұрын

Which is better for long term hold, CSPX or VUAA ?

@TheFifthPersonChannel Ай бұрын

They're essentially the same.

@limkokchin2549 Ай бұрын

Any withholding tax and inheritance tax for foreigners who invest in VOO?

@TheFifthPersonChannel Ай бұрын

Yes, VOO is U.S.-domiciled.

@kenl.9652 Ай бұрын

Have you factored in the brokerage/transaction fees?

@TheFifthPersonChannel Ай бұрын

Yes, commissions on IBKR are US$0.35 minimum for NYSE and US$1.70 for LSE. This difference will only matter if you're investing very small amounts each time.

@kimdickson6123 26 күн бұрын

Hi there. Do you guys know about a new S&P500 Irish Domiciled ETF? It’s called SPYL, with a much lower expense ratio of 0.03%. But this ETF is traded on EBS and AEB only. I need an expert like you guys to analyze through this ETF whether it’s valuable for the long run since it is quite new as well. I would be thankful if you are willing to make a video regarding this. Much appreciated thanksss😊

@squareculet Ай бұрын

Which platform is best to buy CSPX?

@TheFifthPersonChannel Ай бұрын

You can consider Interactive Brokers, Saxo Markets.

@bettaman8702 Ай бұрын

If I want to invest into S&P500 using SRS, is SPY the only option ?

@TheFifthPersonChannel Ай бұрын

For SRS, the only S&P 500 options are S27 (which is domiciled in the U.S.) or the iShares US Index Fund (which is a synthetic ETF) through Endowus. www.sgx.com/campaign/etf-investing-srs endowus.com/insights/how-invest-s-p-500-index-singapore

@raymondlau560 Ай бұрын

How about setting up a Singapore company to hold US equities since it’s legally a separate and perpetual entity? Put wife and kids as directors in case you up the lorry. Of course, there are maintenance costs but negligible compared to US estate tax esp when portfolio is $1 million and above. Will the above work?

@henrytubing Ай бұрын

not as directors but as trustees

@TheFifthPersonChannel Ай бұрын

That could work if your fund size justifies the running costs. You will need to justify that your gains are not of an income nature to avoid the 17% corporate tax.

@kennethong9136 Ай бұрын

Guys this is good information. A 40% estate tax on US stocks is quite frankly mindboggling. However, I check with my stock broker (a local company), and they that the US stocks held in their brokerage should not be subject to the estate tax. Is that the case?

@TheFifthPersonChannel Ай бұрын

No, all U.S.-based assets including U.S. stocks are subject to estate tax. www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-us-estate-and-gift-tax-rules-for-resident-and-nonresident-aliens.pdf

@kennethong9136 Ай бұрын

@@TheFifthPersonChannel Thanks. Guess I need to go down and clarify with them.

@muksfx Ай бұрын

Does this matter if you're trading stock options instead of investing?

@TheFifthPersonChannel Ай бұрын

Doesn't matter. It's just a different strategy altogether

@laturista1000 Ай бұрын

Can foreigners invest in JEPI etf and JEPQ. ??

@TheFifthPersonChannel Ай бұрын

Yes

@laturista1000 Ай бұрын

@@TheFifthPersonChannel I am biased toward JEPQ. 8.80% dividend yield vs SPY 1.34% SPY ETF has larger basket of holdings. These newer ETFs like JEPQ and many others now concentrate more into 80-100 companies vs 500 companies

@Doreenfreundt Ай бұрын

How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading

@gnvsem8640xnq Ай бұрын

Cspx vuaa since they are accumulating, i dont even pay 15% dividend tax..zero dividend tax, correct ? 0.07% commision is only based on initial invested amount or each year can be different depending on the total amount of etf ? Tks

@TheFifthPersonChannel Ай бұрын

Dividends are taxed 15% first before reinvested. The 0.07% annual fee is deducted from the net asset value of the ETF.

@rickallen9099 Ай бұрын

XUS

@henrytubing Ай бұрын

SPY5 how do we buy?

@TheFifthPersonChannel Ай бұрын

The SPY5 is listed on the London Stock Exchange, so you will need a broker with access to that exchange.

@hatchegg80 Ай бұрын

why not mini-futures? Lower funding

@TheFifthPersonChannel Ай бұрын

You could if you're comfortable using derivatives

@stanlee6436 Ай бұрын

For a second I thought u guys don’t encourage us (non US citizen) to buy S&P 500

@TheFifthPersonChannel Ай бұрын

😂

@valenroy Ай бұрын

If the objective is long term investing (aka like a savings account) and liquidity is not that crucial, the synthetic replicating UCITS I500 Swap ETF (S&P500) and UCITS EQQS Swap ETF (Nasdaq) are great candidates because they do not incur dividend withholding tax due to the non-dividend distributing nature of the underlying assets.

@TheFifthPersonChannel Ай бұрын

If you're comfortable with synthetic ETFs!

@daniellin569 Ай бұрын

What is the most cost effective way to invest in the VOO?

@TheFifthPersonChannel Ай бұрын

Through a Vanguard brokerage account. investor.vanguard.com/investment-products/etfs/etf-fees

@asisatan3731 Ай бұрын

please share all your free documents thanks

@taeyeonist1462 Ай бұрын

no kids no issues

@cool3649 Ай бұрын

6:27 rich people laugh

@JK5000 Ай бұрын

How will Uncle Sam know when you pass on?

@TheFifthPersonChannel Ай бұрын

It's tricky... www.nbcnews.com/business/taxes/why-billions-dollars-estate-taxes-go-uncollected-n457236

@FlamingWind Ай бұрын

SPYL….

@TheFifthPersonChannel Ай бұрын

Yes, another option but just launched on 31 Oct 2023.

@Journeytofinancialfreedom2 Ай бұрын

For irish domicilled etf. Only IKBR have. But they have the annoying currency exchange cost. Its expensive. So not that worth for people investing sub 1k a month.

@TheFifthPersonChannel Ай бұрын

IBKR's foreign exchange rates are one of the lowest in the brokerage industry. You can also invest quarterly/semi-annually to reduce transactions costs.

@Journeytofinancialfreedom2 Ай бұрын

@@TheFifthPersonChannel dont they have an exchange fee of at least $3?

@TheFifthPersonChannel Ай бұрын

Yes, there's a US$2 minimum fee when exchanging currencies on IBKR, but its forex spreads are among the lowest. So you're right that it doesn't make sense at small amounts; it's better to accumulate and exchange/invest larger amounts at wider frequencies. In any case, the U.S.-domiciled SPY and the Irish-domiciled CSPX both trade in U.S. dollars, so you need to make the exchange anyway.

@Journeytofinancialfreedom2 Ай бұрын

@@TheFifthPersonChannel thanks for the quick reply. Not too sure but why are mega investors such as adam khoo in Voo instead og CSPX? Really am confused about that.

@TheFifthPersonChannel Ай бұрын

Haha! We'll ask Adam Khoo next time we see him