Home Best S&P 500 ETFs UK to Watch
Connor Brooke
Fact Checked
Fact Checked
Everything you read on our site is provided by expert writers who have many years of experience in the financial markets and have written for other top financial publications. Every piece of information here is fact-checked.
Please note that we are not authorised to provide any investment advice. The information on this page should be construed for information purposes only. We may earn commissions from the products mentioned on this site.

If S&P 500 ETF’s are something you would like to get involved in, you’ve come to the right place. This guide on 10 S&P 500 ETFs in the UK will explore some of the important features of this class of ETFs.

Key Points on S&P 500 ETFs in the UK

  • There are heaps of ETFs that track the S&P 500 index, allowing most investors with a range of risk tolerances to gain exposure to the index via ETFs.
  • Typically the only fees you’ll have to pay when trading ETFs is the expense ratio which can be as low as 0.07%.

Here is a rundown of 10 popular S&P 500 ETFs UK based on trading volume. A more detailed analysis of each ETF will be provided in the next section.

  1. SPDR S&P 500 ETF
  2. Vanguard S&P 500 ETF
  3. iShares Core S&P Small-Cap ETF
  4. iShares Core S&P Mid-Cap ETF
  5. SPDR S&P Biotech ETF
  6. ProShares Short VIX Short-Term Futures ETF 
  7. Invesco S&P 500 Low Volatility
  8. ProShares Ultra S&P 500
  9. SPDR Portfolio S&P 500 Growth ETF 
  10. SPDR S&P 500 UCITS ETF
Crypto vs. Stocks?

Cryptocurrency is now one of the most popular financial assets and offers the potential for huge growth and big returns in a quicker time than traditional stocks. Investing in crypto to diversify is also an effective way to hedge a portfolio over the long term. However, the volatility of crypto means there are some risks, so make sure you do your research before investing.

S&P 500 ETFs UK Reviewed

As you can see above, there are a variety of ETFs that are based on the S&P 500 index. Each ETF has its own individual focus, meaning there is an option for every risk appetite. However, with so many to choose from, it can be difficult to analyse them all and decide which one suits you.

In the section below, we will touch on each of the S&P 500 ETFs mentioned above.

1. SPDR S&P 500 ETF

The SPDR S&P 500 ETF is one of the most popular ETF’s globally and is included in a vast number of people’s portfolios. It tracks the S&P 500 index’s performance, and will buy shares of 500 mid-cap and large-cap US equities.

This ETF is fantastic for its diversification benefits, as it includes stocks from sectors such as IT, healthcare, financial services, industrials, and more. The three most heavily weighted within this ETF are Apple, Microsoft, and Amazon.

If you invest in this ETF, you are essentially investing a portion of money into each constituent of the S&P 500. The size of the portion depends on the ETF’s weighting, so if you invested in the SPDR ETF, you would have more of an ‘investment’ in Apple, Microsoft and Amazon than you would in the other equities within the fund.

2. Vanguard S&P 500 ETF

Like the previous fund, the Vanguard S&P 500 ETF tracks the performance of the S&P 500 index, investing in all 500 constituents.

This ETF has a low expense ratio. A lot of ETF’s charge expense ratios creep close to 1% each year; although it doesn’t sound like much, it can add up if you invest more significant amounts. The Vanguard S&P 500 ETF only charges 0.07%, so if you invest £1000 in it for a year, you will only have to pay 70p in fees!

With assets under management of $26.8billion, this ETF is incredibly popular worldwide. What’s more, it even pays a quarterly dividend – meaning you will receive a cash payment every three months, calculated as a percentage of your investment.

3. iShares Core S&P Small-Cap ETF

If you like the idea of investing in the S&P 500 but want to gain more exposure to small-cap stocks, then this is for you. This fund tracks the performance of a selection of small-cap US equities rather than mid-cap or large-cap funds.

4. iShares Core S&P Mid-Cap ETF

Similar to the previous ETF, the iShares Core S&P Mid-Cap ETF invests in a selection of US equities based on the S&P 500. However, as the name implies, this fund focuses more on mid-cap stocks. Again, although not strictly an S&P 500 ETF, this fund is similar in the sense that it utilises some of the same elements and attempts to replicate or even beat the returns generated by the S&P 500.

One thing about this ETF is it pays a quarterly dividend, meaning you get a nice cash bonus every three months. What’s more, over the long-term, it has generated some return for investors, averaging approximately 9.52% each year.

5. SPDR S&P Biotech ETF

Investing in an S&P 500 ETF that provides exposure to the biotech sector is an attractive prospect for many traders, as the potential returns are enormous, especially with the R&D boost that the Coronavirus pandemic has caused.

The SPDR S&P Biotech ETF derives its investments from companies that operate within the biotech sector. The majority of the companies within this ETF are small-cap, with a few being classed as mid-cap. Due to this, it is a little riskier than an investment in a typical S&P 500 ETF.

6. ProShares Short VIX Short-Term Futures ETF

This S&P 500 ETF is slightly different from the others in terms of how it makes a return. Rather than generating a return based on the movements of the underlying S&P 500, this ETF instead generates a return based on VIX futures. These futures are contracts based on the VIX, an index that tracks the volatility of another asset (in this case, the S&P 500).

Although this may seem confusing, it can be thought of as a way to speculate on how volatile the market will be at a particular time. However, with this VIX ETF, you are speculating on the inverse of what will happen.

Unlike other ETFs, this one provides investors with short exposure who seek to profit from decreases in the volatility of the S&P 500. If you think that the S&P 500 will be less volatile over the next six months, you could invest in this ETF and make a return if your prediction comes true!

7. Invesco S&P 500 Low Volatility

The Invesco S&P 500 Low Volatility tracks the returns of the S&P 500 Low Volatility index, which is made up of equities that are less risky but tend to generate a lower return.

8. ProShares Ultra S&P 500

ProShares are an ETF and bond provider, being traded on various exchanges. The ProShares Ultra S&P 500 offers an investment that aims to double the daily performance of the S&P 500 index before fees and expenses.

This ETF has a slightly higher expense ratio of 0.91% – still pretty negligible in the grand scheme of things. However, the fund has recorded an impressive return of 50.21% over the past year alone. Although this is an outlier, it showcases the type of returns that this ETF can produce.

9. SPDR Portfolio S&P 500 Growth ETF 

Another ETF offered by SPDR is the S&P 500 Growth ETF. This fund aims to replicate the S&P 500 Growth Index’s performance, which comprises equities that exhibit ‘growth’ characteristics. These characteristics can take many forms but typically highlight a company that is expected to grow at a higher rate than the market average.

This ETF has experienced an incredible 68.62% return in the last year alone. However, since January of this year, it is currently down 0.51% overall. This highlights the volatile nature of investing in growth stocks. Also, it has a very cheap expense ratio of only 0.04% annually.


The final ETF we are going to touch on today is the SPDR S&P 500 UCITS ETF. This ETF aims to make a similar return to the S&P 500 index whilst also providing a reliable quarterly dividend to investors.

In 2020, this ETF returned 13.46%, which is a solid return considering the scale of the Coronavirus pandemic. Furthermore, this ETF has an expense ratio of only 0.09%, making it fall in line with other cheap ETFs. Finally, with a 12-month dividend yield of 1.25%, you can receive a solid quarterly payment that adds to this ETF’s attractiveness.

Fundamentals of S&P 500 ETFs

As the above section highlights, there are numerous S&P 500 ETFs to choose from. The question is – which one is right for you?


The first thing to consider is the returns you would like to make.

Looking at the S&P 500 over the past ten years, the index has returned an average of 13.6% each year. If you had invested in an ETF based on the S&P 500, this is the sort of return you can expect on average. This is a larger return than the FTSE 100 traded on the London Stock Exchange, which only returned an average of 7.38% per year.

Risk tolerance

Another crucial element you must consider is your risk tolerance. Although the S&P 500 is thought of as a ‘safe’ investment in some circles, this does not mean it is 100% risk-free. In the past ten years, it has only made a negative annual return in one year; however, this highlights that there is always that element of risk when investing in these kinds of ETFs.


The nature of ETFs means that there will always be a small percentage of fees attached; this is often referred to as the expense ratio. However, ETFs are popular due to the low level of these fees relative to other assets such as mutual funds.

S&P 500 UK Brokers

After you have determined which S&P 500 ETF is for you, the next step involves choosing an appropriate investment platform. There are various options available to investors these days, each one offering a different selection of features and varying fee structures.

To help you decide, we have chosen our stock brokers for investing in an S&P 500 ETF. The section below discusses the features and fees associated with each one.

1. IUX.com

iux.com logoIUX.com is a forex broker designed to empower traders of all experience levels. They offer a comprehensive suite of trading tools, including a wide range of instruments, flexible account types, and the industry-standard MT5 platform. This combination allows you to tailor your trading experience and pursue opportunities across the forex market.

IUX.com boasts competitive spreads, a key factor for maximizing your profit potential. They also advertise high leverage, which can amplify gains (and losses) for experienced traders comfortable with calculated risks. The MT5 platform is a user-friendly and powerful tool, providing advanced charting functionalities and a robust set of technical indicators to help you make informed trading decisions.

IUX.com understands that every trader has unique needs. That’s why they offer a variety of account types, allowing you to select the option that best suits your capital and trading style. This level of flexibility ensures you can enter the market with confidence, knowing your account is set up for your specific goals.

If you’re looking for a forex broker that prioritizes your trading experience, IUX.com is definitely worth considering. Their diverse platform, competitive offerings, and focus on trader empowerment make them a compelling choice for those seeking to navigate the forex market.

Your capital is at risk

2. Fineco Bank

Italian financial institution Fineco Bank recently entered the UK stock broker scene. It allows you to purchase and sell shares in a super-competitive manner at just £2.95 per trade. This is also the case for ETFs. If you’re looking to add some international shares to your portfolio, Fineco Bank gives you access to heaps of foreign markets.

Fineco Bank is also popular with UK investors as it allows you to get started with a small investment of £100. If you do feel comfortable investing on a DIY basis, Fineco Bank offers multiple research tools and ongoing market commentary.

When it comes to safety, Fineco Bank is heavily regulated. Your funds are protected by the FSCS and the broker holds that all-important FCA license

Commission Starting from £0 commission on FTSE100, US and EU Shares CFDs, market spread only and no additional markups. 
Deposit fee Free
Withdrawal fee $0
Inactivity fee None
Account fee None
Minimum deposit £0
Stocks markets Access to 13 stock markets
Tradable assets CFDs, Forex, Commodities, Stocks and ETFs, indices, mutual funds, bonds, options, futures,
Available Trading Platforms Web-based trading platform, mobile trading app, desktop trading platform

Your capital is at risk

3. FP Markets

FP Markets is a highly regarded online forex and CFD broker known for its comprehensive trading solutions and customer-centric approach. Established in 2005, FP Markets has built a reputation for providing an extensive range of trading instruments, including forex, indices, commodities, and cryptocurrencies, which cater to a diverse range of trading preferences.

One of FP Markets’ standout features is its commitment to offering competitive pricing with tight spreads, ensuring that traders can maximize their profits. The broker also supports various trading platforms, such as MetaTrader 4, MetaTrader 5, and IRESS, allowing traders to choose the platform that best suits their trading style and needs.

FP Markets strongly emphasizes education and resources, providing traders with access to a wealth of educational materials, webinars, and market analysis. This dedication to trader education helps both beginners and experienced traders enhance their trading skills and make informed decisions.

Customer support at FP Markets is highly responsive and available 24/5, ensuring that traders receive prompt assistance whenever needed. Additionally, the broker is regulated by top-tier authorities like ASIC and CySEC, providing traders with a sense of security and trust.

In summary, FP Markets stands out as a reliable and versatile broker. It offers a robust trading environment supported by competitive pricing, excellent educational resources, and top-notch customer service.

Your capital is at risk


To summarise, investing in S&P 500 ETFs is one potential way to earn a passive income. As these ETFs comprise firms from the US equity market, they provide an avenue to positive annual returns, along with supplying diversification benefits to your portfolio.

As mentioned in this guide, there are a wide variety of ETFs to choose from, each one with its own merits. However, you must heed investment advice and do your own due diligence before investing in an S&P 500 ETF.

Frequently Asked Questions on  S&P 500 ETFs UK

Who are some ETF providers in the UK?

What is the minimum to invest in an S&P 500 ETF?

What type of returns can I get by investing in an S&P 500 ETF?

Are S&P 500 ETFs a risky investment?

Connor Brooke

Connor Brooke

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.