How to invest in the S&P 500 in the UK

We've summed up how to invest in the S&P 500 from the UK and shown some popular S&P 500 index funds and ETFs.

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The S&P 500 is the most famous stock index in the world. So much so that when people refer to the US stock market, they’re usually talking about this index. It’s a mammoth collection of some of the best companies in the world and it’s now easier than ever to invest in the S&P 500 from the UK.

Key takeaways

  • The S&P 500 index is made up of 500 of the biggest and best companies in the US.
  • You can invest in individual companies or a “fund” that tracks the S&P (see best performers).
  • Watch out for any ongoing fees, usually referred to as “TER” – aim for as little as possible.

S&P 500 ETFs

One of the best ways to invest in the S&P 500 index from the UK is with an exchange-traded fund (ETF). These let you invest in all 500 stocks in a single investment. Here are the best-performing ETFs.

Note: We’ve added a link next to each of these funds, which takes you to a share trading app where you can sign up to invest in that S&P 500 fund.

ETF 5-year performance (to Jan. '25) Link
Invesco S&P 500 ETF (SPXP) Invesco S&P 500 ETF icon 108.13% Invest Capital at risk
Xtrackers S&P 500 Swap ETF 1C (XSPX) Xtrackers S&P 500 Swap ETF 1C icon 107.59% Invest Capital at risk
HSBC S&P 500 ETF (HSPX) HSBC S&P 500 ETF icon 106.37% Invest Capital at risk
iShares Core S&P 500 ETF USD (Acc) (CSP1) iShares Core S&P 500 ETF USD (Acc) icon 105.95% Invest Capital at risk
SPDR® S&P 500 ETF (SPX5) SPDR® S&P 500 ETF icon 105.53% Invest Capital at risk
Vanguard S&P 500 ETF (VUSA) Vanguard S&P 500 ETF icon 108.33% Invest Capital at risk

Pros and cons of investing in the S&P 500

Pros

  • Access some of the largest US stocks
  • Investing in the index provides a degree of automatic diversification
  • You can invest with ETFs and funds
  • By tracking an index rather than actively picking stocks, you can invest passively which is often cheaper

Cons

  • Not completely diversified — it only includes US stocks
  • Foreign exchange (FX) fees might apply if you buy individual S&P 500 stocks
  • Market cap weighting means most of your investment goes to the top stocks
  • You get no control over the investments in an S&P 500 fund

The September effect

New research from personal finance comparison site Finder shows that September is a universally bad time for the stock market, no matter where you are in the world. Across 4 major global stock market indices, September was far and away the worst-performing month over the past 50 years.

You can see the average performance of the S&P 500 in different months of the year in the chart below with the average returns or losses taken from every year since 1973. You can also compare this with the FTSE 100, Euro Stoxx 50 and Nikkei 22 by click through the charts below.

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Bottom line

Home to Nvidia, Amazon, Apple, Tesla, and much more – the S&P 500 is made up of top US companies. It’s understandable why investors want to get a piece of the action. Take some time to consider how you want to invest – are there specific S&P 500 stocks you want to buy, or are you looking to diversify with an S&P 500 index fund or ETF?

Make sure you consider the costs of investing in US stocks, as there will likely be a foreign exchange (FX) fee on top of any commission. If you buy an S&P 500 fund or ETF in GBP denomination, you can avoid this. Investing in the S&P 500 is a decenture to the US stock market with a single investment, but remember to think about how this fits in with the rest of your portfolio.

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To make sure you get accurate and helpful information, this guide has been edited by Liz Edwards as part of our fact-checking process.
George Sweeney, DipFA's headshot
Deputy editor

George is a deputy editor at Finder. He has previously written for The Motley Fool UK, Nasdaq, Freetrade, Investing in the Web, MoneyMagpie, Online Mortgage Advisor, Wealth, and Compare Forex Brokers. He's focused on making personal finance and investing engaging for everyone. To do this he draws from previous work and his Level 4 Diploma for Financial Advisers (DipFA), sharing what he’s learnt. When he’s not geeking out about money, you’ll find him playing sports and staying active. See full bio

George's expertise
George has written 195 Finder guides across topics including:
  • Investing
  • Personal finance
  • Tax
  • Pensions
  • Mortgages

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