Last update: 25 February 2026

In this article, I’ll explore how to buy the absolute TOP S&P 500 ETFs from Europe (or anywhere in the world) and what to consider when selecting a good S&P 500 fund.

Over the past 50 years, the S&P 500 has delivered annualized returns of over 10%, outperforming major European indices.

This stellar performance has piqued the interest of many European investors looking to tap into this index.

Exchange-Traded Funds (ETFs) are the most accessible way to do so, but which one should you choose?

The absolute Best S&P 500 ETFs for Europeans

I know you want the list of the best ETFs to invest in the SP 500 now, so let’s go straight to the point.

The best ETF for EU citizens are these two below.

To give you the best two ETF on the S&P500 I have excluded (for now) all the Swap-based ETFs and those who distribute dividends.

These two are large and cheap, issued by popular providers that are unlikely to disappear anytime soon.

I invest in the VUAA ETF, denominated in USD, to capitalize on the exceptional performance of the S&P 500 index in recent years and for sustained long-term growth.

I am ok with investing in USD but I understand some investors may prefer the second ETF (IUSE) to protect themselves from EUR/USD exchange rate volatility .

The broker I use to buy and accumulate my VUAA ETF is Freedom24.

Disclaimer: This article is for educational and informational purposes only. The opinions expressed in the article are those of the author and should not be construed as financial advice. Before making any financial investment, it is advisable to conduct your own due diligence or consult your financial advisor. This is a disclosure, not a recommendation to buy or sell securities. Investing always involves risk. Every investment carries risks. Past performance does not guarantee future results. Before investing, it is crucial to conduct your own analysis and consider the associated risks.

S&P500 performance chart

Here below is the main reason for me to invest in the S&P500 ETF: its long term performance.

As you can see, the average yearly return of the S&P 500 has been +11,3% over the last 50 years.

This assumes dividends are reinvested, and this is why I prefer the accumulating ETFs to invest in this index. Adjusted for inflation, the fifty year average stock market return of the S&P 500 index is 7.26% (that is huge).

The Cheapest S&P 500 ETFs in Europe

Many European investors care about the cost of their ETF.

Here is the list of the cheapest UCITS ETFs we can buy in the old continent:

These ETFs have very low total expense ratio.

The largest S&P 500 Europe Equivalent ETFs

When investing in ETFs size matters.

Large ETFs offer higher liquidity, lower costs, greater stability, and better diversification, making them a more attractive option for investors seeking efficiency and reliability in their investments.

Why Popular S&P 500 ETFs Like SPY Are Not Available in Europe?

1. Regulatory Differences:

• UCITS Compliance: European regulations require ETFs to comply with the Undertakings for Collective Investment in Transferable Securities (UCITS) standards. SPY does not meet these standards, making it unavailable to European investors.
• PRIIPs Regulation: The Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation demands specific disclosures that U.S.-listed ETFs often do not provide, further limiting access.

2. Tax Considerations:

• Withholding Taxes: Investing directly in U.S.-listed ETFs like SPY can lead to higher withholding taxes on dividends for European investors.
• Tax Reporting: European ETFs are structured to be more tax-efficient for European investors, aligning better with local tax laws and reporting requirements.

3. Availability of Alternatives:

• UCITS ETFs: There are numerous UCITS-compliant S&P 500 ETFs available in Europe, such as iShares Core S&P 500 UCITS ETF (CSPX) and Vanguard S&P 500 UCITS ETF (VUSA), offering similar exposure with regulatory and tax advantages.
• Local Listings: European exchanges list these UCITS ETFs, making them easily accessible to local investors without the need for dealing with U.S. exchanges. I could even trade the SP500 on option trading platforms.

To sum up:
Popular U.S.-listed ETFs like SPY are not available in Europe due to regulatory, tax, and currency considerations.

European investors can access similar S&P 500 exposure through UCITS-compliant ETFs that meet local requirements and offer greater tax efficiency and convenience.

The downside is that normally UCITS ETFs are more expensive and less liquid compared to the US equivalents.

I could find the original SPY ETF only on specific trading platforms if I qualify as a professional investor:

Disclaimer: This article is for educational and informational purposes only. The opinions expressed in the article are those of the author and should not be construed as financial advice. Before making any financial investment, it is advisable to conduct your own due diligence or consult your financial advisor. As of the publication date, I hold positions in all the stocks and ETFs mentioned below. This is a disclosure, not a recommendation to buy or sell securities. Every investment carries risks. Past performance does not guarantee future results. Before investing, it is crucial to conduct your own analysis and consider the associated risks.

Freedom24 is the best Robinhood alternative now.

VUAA · CSPX · IUSE ETFs Compared

S&P 500 UCITS ETFs are among the most popular choices for European investors. Three of the most discussed are VUAA, CSPX, and IUSE. Here’s how they compare.

VUAA – Vanguard S&P 500 UCITS Accumulating

• Replication: physical.
• Dividends: accumulating (reinvested).
• TER: 0.07%.
• Highlights: very low cost, solid reputation, popular for long-term growth.

CSPX – iShares Core S&P 500 UCITS

• Replication: physical.
• Dividends: accumulating.
• TER: 0.07%.
• Highlights: one of the oldest S&P 500 ETFs in Europe, highly liquid, widely used.

IUSE – iShares S&P 500 EUR Hedged

• Replication: physical with currency hedging.
• Dividends: accumulating.
• TER: 0.20%.
• Highlights: reduces euro-dollar currency risk, useful for investors who prefer stability over FX exposure.

To Sum Up

• For simplicity and low cost: VUAA and CSPX are the go-to choices.
• For euro-based investors worried about USD volatility: IUSE offers hedging, though at a higher cost.

Benefits of Investing in S&P 500 Equivalent ETFs in Europe

S&P 500 ETFs (Exchange-Traded Funds) are investment funds that track the performance of the S&P 500 Index.

The S&P 500 Index is a market-capitalization-weighted index of 500 of the largest publicly traded companies in the United States, covering various sectors of the economy.

1. Diversification:

• Broad Market Exposure: Investing in an S&P 500 ETF provides exposure to 500 of the largest publicly traded companies across various industries in the U.S., significantly reducing the risk associated with investing in individual stocks.
• Sector Coverage: The ETF encompasses multiple sectors such as technology, healthcare, financials, consumer goods, and more, ensuring a well-rounded investment portfolio.

2. Cost Efficiency:

• Lower Expense Ratios: S&P 500 ETFs typically have lower expense ratios compared to actively managed funds, making them a cost-effective investment option.
• Reduced Transaction Costs: Buying an ETF incurs fewer transaction costs than purchasing individual stocks of all 500 companies.

3. Liquidity:

• Ease of Trading: S&P 500 ETFs are highly liquid, allowing investors to buy and sell shares easily on the stock market during trading hours.
• Tight Spreads: High liquidity ensures tight bid-ask spreads, reducing the cost of trading.

4. Dividend Income:

• Regular Dividends: Investors receive dividends from the underlying stocks within the ETF, providing a potential income stream in addition to capital appreciation (Distributing ETFs).
• Reinvestment Opportunities: Dividends can be reinvested to purchase more shares, facilitating compound growth over time (accumulating ETFs).

5. Performance Tracking:

• Benchmark Index: The S&P 500 is a widely recognized benchmark of the U.S. stock market, and its performance is often seen as a reflection of the overall economy.
• Historical Returns: Historically, the S&P 500 Index has delivered strong long-term returns, making it an attractive option for long-term investors.

6. Risk Management:

• Reduced Volatility: The broad diversification across 500 companies helps to mitigate the impact of poor performance by any single stock, resulting in lower overall portfolio volatility.
• Market Stability: The inclusion of large-cap, established companies provides a measure of stability, especially during turbulent market conditions.

Most people use ETFs on the S&P500 to make their main savings plans in the US.

As a matter of fact, it is a good idea since the results have been statistically great in the last 90 years.

Here is what it gets to reach one million by investing 150 euros per week in the SP500:

Why Invest in the best S&P 500 ETF?

Historical Performance

• The S&P 500 index has delivered average annual returns of 7-10% after adjusting for inflation.
• Historically, the index has consistently outperformed many other investment options over the long term.

In the image above, the green lines represent the years when the S&P 500 index closed positive, while the red lines indicate the negative years. Given the index’s strong performance, I find it baffling that some people choose not to invest in it, especially since European indices do not have comparable performance.

Diversification Benefits

• Investing in the S&P 500 provides exposure to a broad range of industries and sectors, reducing risk and increasing potential returns.
• The index is diversified across various market capitalizations, sectors, and industries.

The S&P 500 is an index of top performers, featuring only the largest and most successful companies in the U.S.

Choosing the Right S&P 500 ETF as a European Investor

The most popular ETFs on the Sp500 index are obviously in US dollars.

In Europe we use the Euro, so investing in USD ETFs we expose ourselves to exchange fluctuations.

We are free to invest in hedged ETFs but it comes with a price.

1. Currency Considerations:

• Currency Exposure: Determine whether you prefer an ETF denominated in EUR or USD, as this affects currency risk and conversion costs.
• Hedged vs. Unhedged: Consider whether you want a currency-hedged ETF to mitigate the impact of exchange rate fluctuations.

Personally I prefer unhedged SP500 ETFs.

2. Tax Efficiency:

• Dividend Withholding Tax: Investigate the tax implications of receiving dividends from U.S. companies, as some ETFs may offer more favorable tax treatment for European investors. Normally, as Europeans, we can reduce taxes using Irish based ETFs or synthetic replica ETFs.

3. Expense Ratios:

• Lower Costs: Compare the expense ratios of various S&P 500 ETFs, as lower fees can enhance long-term returns.
• Management Fees: Consider both the expense ratio and any additional fees associated with the ETF.

4. Liquidity:

• Trading Volume: Opt for ETFs with high trading volumes to ensure ease of buying and selling shares.
• Bid-Ask Spreads: Look for ETFs with narrow bid-ask spreads to minimize trading costs.

5. Fund Size and Provider:

• Established Providers: Choose ETFs from reputable providers with a track record of reliability and performance.
• Fund Size: Larger ETFs generally offer better liquidity and lower costs.

6. Distribution Policy:

• Accumulating vs. Distributing: Decide between accumulating ETFs, which reinvest dividends, and distributing ETFs, which pay out dividends to investors.

7. Tracking Accuracy:

• Tracking Error: Evaluate the tracking error of the ETF to ensure it closely follows the performance of the S&P 500 Index.

Investing in the S&P 500 can yield better results compared to ❌ European indices:

Why Synthetic Replica S&P 500 ETFs Make Sense to Save on Dividend Tax (in Europe)

Synthetic replica S&P 500 ETFs offer significant tax advantages for investors, primarily through reduced withholding tax on dividends.

By using derivatives instead of holding the actual underlying securities, synthetic ETFs can bypass the 15-30% U.S. withholding tax that typically applies to foreign investors, resulting in a higher net dividend yield.

This tax efficiency translates into improved net returns, as the saved taxes can be reinvested, enhancing the compounding benefits over the long term.

The largest Swap based ETFs in Europe on the SP500 are:

• Invesco S&P 500 UCITS ETF (IE00B3YCGJ38) SPXS
• Xtrackers S&P 500 Swap UCITS ETF (LU0490618542) XSPU

Investors may fear swap-based ETFs due to counterparty risk, as these funds rely on financial institutions to fulfill their obligations.

Some dislike them also for the complexity and lack of transparency in their structure, making it harder to understand and assess the associated risks.

The S&P500 is a Market Capitalization Weighted Index

How It Works

• The S&P 500 index is a market capitalization-weighted index, meaning that the largest companies have a greater influence on the index’s performance.
• The index is rebalanced quarterly to ensure the weightings remain accurate.

Benefits for Investors

• The market capitalization-weighted index offers a broad representation of the U.S. stock market.
• It provides a way to track the performance of the largest U.S. companies.

What I like is that bad companies exit the index automatically , so I always guaranteed to be invested in the top ones.

Best S&P 500 ETFs by Country

• 🇩🇪 Best S&P500 ETF in Germany: Consider local tax implications and broker options.
• 🇳🇱 Best S&P500 ETF in Netherlands: Focus on ETFs with favorable tax treatments.
• 🇵🇹 Best S&P500 ETF in Portugal: Look for ETFs with high liquidity and low costs.

• 🇬🇧 Best S&P500 ETF in UK: Consider ETFs that are GBP-hedged to avoid currency risk.

In general, a good SP500 ETF for European investors is good regardless of the nationality of the EU investor. There are little differences in taxation but availability is mostly the same all over Europe.

The best ETFs to invest in the SP500 for investors from the United Kingdom may differ because they may prefer to use GBP hedged tools instead.

How to invest in the Stock Market with S&P 500 ETFs

How to Get Started

• Open a brokerage account with a reputable online broker.
• Fund your account and select the S&P 500 ETF you want to invest in.

Tips for Successful Investing

• Start with a solid understanding of the S&P 500 index and ETFs.
• Set clear investment goals and determine your risk tolerance.

⚫️ The dark side of the S&P 500 for European investors

Some will tell you “VWCE and chill” to say that if you invest in the SP500 you are all set and you don’t have to think too much. This is not totally wrong but neither correct. Investing only in the SP500 comes with some risk too.

1. Overconcentration Risk:

• Heavy Weighting of Large Companies: The S&P 500 is market-cap weighted, meaning the largest companies have a disproportionate influence on the index’s performance. This can lead to overexposure to a few dominant sectors or companies, increasing risk if these companies face downturns. Google and Amazon are some of the largest.

2. Lack of Diversification:

• Sector Imbalance: The index may not adequately represent all sectors of the economy, potentially missing out on growth opportunities in smaller or emerging industries.
• Geographic Limitation: As it only includes U.S. companies, investors lack exposure to international markets, which can limit diversification and growth potential.

3. Passive Management Limitations:

• Inflexibility: S&P 500 ETFs and index funds are passively managed, meaning they cannot adjust their holdings in response to changing market conditions, unlike actively managed funds that can take defensive positions during market downturns.
• Following the Market: These funds are bound to follow the market, which can be a disadvantage during periods of market decline or stagnation.

Video best ETF on the SP500

Alternative Investment to the SP500?

In my opinion, the best alternative to the SP500 ETF is a World ETF like VWCE or SUSW.

Diversified Portfolios

• Consider diversifying your portfolio by investing in ETFs that track other indices, such as emerging markets or bonds.

Sustainable Investment Options

• Look for ETFs incorporating environmental, social, and governance (ESG) considerations into their investment strategy.

The best ESG ETFs on the SP500 don’t exist because you cannot track two specialities (SP500 and ESG) at the same time. Still, you may pick ESG companies inside the SP500.

Preferred S&P 500 ETF Europe on Reddit?

Redditors often share valuable insights and discussions about investment opportunities, including the best S&P 500 ETFs for European investors.

Here are some of the most frequently mentioned options:

• Vanguard S&P 500 UCITS ETF (VUSA)
• iShares Core S&P 500 UCITS ETF (CSPX)
• SPDR S&P 500 UCITS ETF (SPY5)
• Invesco S&P 500 UCITS ETF (SPXS)

These ETFs are popular among European investors on Reddit (Best S&P 500 ETF for EU citizens thread) seeking exposure to the S&P 500 index. You can find the best ETFs by using justETF (review here).

Conclusions on the best SP500 ETF Europe

• S&P 500 ETFs offer a convenient way to invest in the U.S. stock market.
• Consider factors such as TER, liquidity, and inception date when choosing an ETF from Europe.

Investing in S&P 500 ETFs provides European investors with a diversified, cost-effective, and liquid option to gain exposure to the U.S. stock market. By choosing the right ETF and considering factors such as total expense ratio, liquidity, and dividend yield, investors can optimize their returns and manage risk effectively.

I use the VUAA ETF to invest in the S&P500 index and I buy it on this broker.

FAQ

Sal Cocurullo

Sal Cocurullo has been investing his own money since 2006 and is financially independent. His portfolio is mainly stocks and ETFs, plus €83,000 currently invested across European P2P platforms. He founded Revenue.Land, where a platform gets reviewed only after he has opened and funded an account. Journalists at Business Insider, Yahoo Finance and Nasdaq have quoted him as a source on European investing. Full bio →