iShares Core S&P 500 UCITS ETF v VOO?


#1

iShares Core S&P 500 UCITS ETF is an ETF which contains stocks from the top 500 US companies and this ETF is managed by Blackrock; whereas VOO is an ETF which also contains stocks from the top 500 US companies but the ETF is managed by Vanguard, correct?If I am correct, then I assume that both ETFs have the same/similar diversification and risk; both have a TER of 0.07%.

So how does one chose between iShares Core S&P 500 UCITS ETF and VOO? what are the key aspects one should consider when selecting between two funds which follow the same index, have same TER, but which are managed by different Companies?

Thanks.


#2

I think you are making some mix here.

iShares Core S&P 500 is an irish ETF, traded in Europe. You can have in in two flavours, accumulating (CSSPX) and distributing (IUSA).

Vanguard S&P 500: you can have the irish version (VUSA), also traded in Europe and with TER 0.07% or the USA version (VOO), which is traded on USA stock exchanges and has a TER of 0.04%.


#3

As @weirded said, in Ireland you have IUSA, CSPX & VUSA, and in USA you have SPY & VOO. All of them track the same index: S&P 500. The domicile is a crucial thing when choosing an ETF, but for this you can search in this forum for more info.

When an ETF tracks an index, it tries to reproduce the same return as the index. The benefit is, that no human needs to make decisions what to buy and sell. There are however many ways in which you can reproduce an index. Then, if you get dividends, the ETF can either pay them out to you, or buy more stocks with that money.


#4

Ok I understand that one is Irish domiciled and the other is US domiciled - sorry I chose a bad example to illustrate my question (In this case VOO US domiciled ETF is better to tax reasons - I already read the Tax optimization post from @nugget in great detail).
But my general question is still open because of poor choice of funds I took to illustrate my question - but let me take another example please:

How would I chose between iShares Core S&P 500 and VUSA (both are Irish domiciled ETFs, and both track the same index)?
Thanks


#5

You get double taxed with UCITS ETF unlike the US one, about +0.30% to TER. Except if you don’t earn enough to file a tax return…


#6

Flip a coin ? :wink:
Fund size ? (VUSA > IUSA)
Replication ? (VUSA Full replication, IUSA Optimized sampling)


#7

“You get double taxed with UCITS ETF unlike the US one, about +0.30% to TER. Except if you don’t earn enough to file a tax return…”

Yes I fully agree. Sorry but my initial choice of funds (iShares S&P v VOO) to illustrate my question was poor, so please allow me to take another example: How would I chose between iShares Core S&P 500 and VUSA (both are Irish domiciled ETFs, and both track the same index)?


#8

Actually the biggest European ETF is CSPX, so the accumulating iShares S&P 500.

When you’ve got to choose between two identical ETFs by different providers, then I would definitely look at the fund size. Bigger fund size means more liquidity. The reason why Vanguard is so popular is (quote from Wikipedia):

Vanguard is structured as a mutual company; it is owned by funds managed by the company, and is therefore owned by its customers.

So at Vanguard the decisions are made by people investing in its products.


#9

Vanguard is structured as a mutual company; it is owned by funds managed by the company, and is therefore owned by its customers.

I thought that was a (patented) feature of their american funds only, but not european?

So at Vanguard the decisions are made by people investing in its products.

You wish, it’s almost always the management who call the shots. They have $5T+ AUM, even the richest men on Earth (Bezos) has 50 times less.


#10

I meant the American one. But anyway, do you know what is the connection between Vanguard US and Europe? Is V Europe owned by V US? The structure of Vanguard is really patented? That is so ridiculous, what you can patent…

Didn’t think about that. It would be cool if people who own Vangaurd’s products could at least vote for who will be in the board.