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S&P 500 ETFs: Vanguard fund is most popular for UK and EU investors

The Vanguard S&P 500 UCITS ETF USD ACC (GBP) is the most popular S&P 500 ETF among Hargreaves Lansdown investors. S&P 500 ETFs track the performance of 500 large US companies.

  • The S&P 500 index rose by approximately 386% between January 1, 2000, and January 1, 2026.
  • In the year to August 17, 2026, the S&P 500 index increased by around 20%.
  • The Vanguard S&P 500 UCITS ETF USD ACC (GBP) is listed on the London Stock Exchange with the ticker "VUAG".

The Vanguard S&P 500 UCITS ETF USD ACC (GBP) is the most popular S&P 500 exchange-traded fund (ETF) among Hargreaves Lansdown investors. This ETF, which tracks the performance of 500 of the largest US companies, is listed on the London Stock Exchange (LSE) under the ticker "VUAG".

The S&P 500 index has shown strong historical performance, increasing by around 386% between January 1, 2000, and January 1, 2026. More recently, the index rose by approximately 20% in the year to August 17, 2026.

ETFs offer exposure to a diversified mix of investments, helping to spread risk, according to Kate Marshall, investment analyst at Hargreaves Lansdown. When choosing an S&P 500 ETF, investors consider factors such as expense ratios, with VUAG having a relatively low annual fee of 0.07% compared to HSBC's S&P 500 ETF at 0.09%.

ETFs can be accumulating (ACC), reinvesting dividends, or distributing (Dist), paying dividends to investors. Afolabi Thomas, equity specialist at Vanguard, suggests that investors focused on long-term growth may prefer accumulation shares, while those seeking an income stream might prefer distribution shares.

Why this matters: The S&P 500 is considered an effective proxy for the US stock market, and ETFs provide a way for investors to track its performance.

What this means for you: If you are considering investing in the S&P 500, popular ETF options include the Vanguard S&P 500 UCITS ETF USD ACC (GBP) and its distributing counterpart, VUSA. Your choice between an accumulating or distributing fund may depend on whether you prioritise long-term growth through reinvested dividends or a regular income stream.

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