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S&P 500: VUAG vs VUSA

VUAGThe S&P 500, dividends reinvestedvsVUSAThe S&P 500, paying cash dividends
The short answer
  • Both track the S&P 500 index and hold the same companies, so the real choice is what happens to dividends, not performance.
  • They cost the same to hold: 0.07% a year each.
  • Performance is almost identical: +82% versus +82% in USD over the past five years.
  • VUAG reinvests dividends automatically (accumulating); VUSA pays them out as cash (distributing), so pick based on whether you want income.
Performance
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Shown in USD. Past performance is not a reliable guide to future results.

MetricVUAGVUSA
Annual fee (TER)
0.07%
0.07%
Tracks
S&P 500
S&P 500
Distribution
Accumulating
Distributing
Domicile
Ireland · UCITS
Ireland · UCITS
Risk
Medium (3/5)
Medium (3/5)
Trades in
LSE (GBP)
LSE (GBP)
Provider
Vanguard
Vanguard
The S&P 500, dividends reinvestedVUAG
Tracks S&P 500

The set-and-forget version of Vanguard's S&P 500 fund. Identical holdings and fee to VUSA, but dividends are reinvested inside the fund automatically, so your money compounds without you lifting a finger.

See full VUAG details →
The S&P 500, paying cash dividendsVUSA
Tracks S&P 500

Vanguard's hugely popular S&P 500 fund on the London Stock Exchange. You own the 500 biggest US companies and the dividends land in your account as cash every three months. If you would rather have dividends reinvested automatically, the same fund exists as VUAG.

See full VUSA details →
Tax notes for non-US investors

Both VUAG and VUSAare Irish-domiciled UCITS ETFs, so dividends from their US holdings are taxed at 15% under Ireland's US treaty, rather than the 30% that applies to US-domiciled funds for many non-US investors, and they sit outside US estate tax. Your own local tax still depends on where you live, so check your country's rules; for most investors the main ongoing cost to watch is each fund's annual fee.

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Frequently asked questions

Which is cheaper, VUAG.L or VUSA.L?

They cost the same, 0.07% per year each, so choose based on what each fund actually holds rather than on fees.

Are VUAG.L and VUSA.L accumulating or distributing?

VUAG.L is accumulating, so dividends are reinvested automatically inside the fund. VUSA.L is distributing, so dividends are paid out to you as cash. Accumulating funds suit investors who want hands-off compounding with no cash dividends to reinvest manually.

Are VUAG.L and VUSA.L both UCITS ETFs?

Yes, both are UCITS ETFs (VUAG.L domiciled in Ireland, VUSA.L in Ireland), so both give non-US investors the 15% US dividend withholding rate and sit outside US estate tax, unlike US-domiciled ETFs.

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