This Is The Cheapest S&P 500 ETF For Europeans 

Hi Mantas, many thanks 🙏 Great point, noted it down and will keep it in mind for future videos 👌 Cheers

Thanks a lot Nicolas and yes, I think this well eventually spread to more investors and get them excited to invest in it and in turn increase AUM though 8,676m should be enough liquidity for time being 😉 Cheers mate

Awwww, I can always count on your support and kind words, thank you so much 🙏 Happy Sunday my man 👋 Cheers

Thanks a lot indeed, super happy to hear that 🙌 I will most likely do the same very soon 👌 And no, I did not know that fact before, thanks for sharing and makes me even more excited about them 😉 Cheers

Hi Brian, thanks a lot and yes, once I pull the trigger and make the change, I would indeed need to sell my Vanguard position and buy this ETF with those funds 👌 In the long-term though, might be worth it. Cheers

Hi Zuzana 👋 Great questions all around. Let's dive in! The "index fund bubble" is a spicy topic, isn't it? Here's the deal: index funds have become massively popular because they're an easy, low-cost way to diversify. But when too much money flows into them, some argue it could inflate the prices of the stocks within those indexes, potentially leading to a bubble. I'm all for healthy skepticism, but remember, markets are complex beasts with many moving parts. As for passive investing impacting market efficiency, it's a legit debate. The theory goes that if everyone's going passive, there might be less price discovery because fewer people are analyzing the fundamentals of individual stocks. There's some truth there, but the market's a long way from becoming inefficient. Active traders and hedge funds are still very much in the game, keeping things spicy. Is the S&P 500 overvalued? Ah, the million-dollar question! Valuation is subjective and depends on many factors like interest rates, earnings growth, and economic conditions. Some metrics suggest it's pricey, but it's also the home of some of the most innovative and profitable companies globally. Always look beyond the numbers; context is key. In essence, keep a balanced perspective. I am not worried about it at all to be fair though, if it collapses it would be a major global melt-down, in which case we would have other problems. Though that's why I don't only invest in ETF's or Stocks, but also Real Estate & Bitcoin 😉 Cheers

Thanks for your insight! 👌 Cheers and have a nice day!

@@zuzanadrabikovavozarova109 My pleasure and you too 👋

Oh, I see now what you mean, well I am a long-term investor not a trader so I don't like shorting, too much risk for me:) But if it works for you, go for it 😉

Hi and sure thing, it's equally great 👌 Just in case though, 'the cheapest' one I talked about is also available in € and accumulating for the same low TER of 0.03% you can find it here www.justetf.com/en/etf-profile.html?isin=IE000XZSV718 but both are great options. Cheers

@@SmartMoneywithKai Thanks for the answer. It is appreciated.

I am also sticking to SRX8 despite slightly higher management fee. The reason is that if i sell now, I have to pay 37,5% tax on the gains (live in Norway). Since it is a long-term investment, I will just let it run. Hopefully iShares will also reduce the annual fee to stay competitive. Cheers and thanks for the video :)

@@georgiik Thanks for sharing and makes perfect sense. Wow, 37.5% capital gains is crazy :) Yes, I am sure ishares and Vanguard will react eventually to keep customers with them 👌 Happy Easter 👋 Cheers

​@@SmartMoneywithKai hi Kai, i appreciate the video but this ETF fund currency is USD. I am looking for the S&P 500 UCITS ETF with these properties: fee 0.03%, accumulating, physical replication and fund currency Euro. Is there any such ETF available, I couldn't find though

Appreciate that Lukas and thanks for all your support. Subscriber numbers are like compound growth, it takes a long-time to get started, but if you stick with it, you will be rewarded eventually 😉 As the community keeps growing, I'll be super excited to have subscriber meet ups in different cities in the future 🙌 Cheers

Hi mate, thanks a lot 🙌 Probably not anymore, will keep it for time being, but new S&P buys will go through this ETF instead 👌 Cheers back to Riga, been many times, lovely city.

Indeed, very impressive and great to see, it just shows the importance of low fees. We've seen the same with the Bitcoin ETF, where people left Grayscale to go to Blackrock for much lower fees 👌

Awesome to hear that and my pleasure 🙌

Hi, that's strange, maybe go into your settings and under trading permissions ensure all stock markets globally are enabled, that should do the trick. Cheers

Hi, thanks a lot and great question. Funny you ask that, just going through answering the comments I got and on another video one subscriber said he converted his EUR to USD to get higher interest rates on it, but now lost out because USD dropped vs EUR and he needed the money so he actually was worse off despite the higher interest rates. That's why, if you mostly earn and spend in EUR, then better stick with it, because FX rates fluctuate and you might loose out on that. I earn in USD and spend in both USD and EUR so for me I can choose and long-term I see USD stronger, but if I would need EUR in short-term I would keep it EUR as well 👌 Cheers

Nobody does this, which is why all these videos are useless. One of the reasons VWCE is so good despite 0.22%.

Hi and yes, great point, which I did not mention. They are all fairly similar but I am happy with their performance, you can check it out here www.trackingdifferences.com/ETF/Index/S&P%20500%20Index Cheers

Hi, as I wrote before, I just did that and am very happy with their tracking performance. Not sure how your comment is related as VWCE is based on a completely different set of shares and equally has tracking errors, most likely even more which is normal since it's tracking over 3600 stocks, but if you like that ETF, then great 👌

According to the table the Vanguard ETF has a 0.07% TER and -0.24% TD. While the SPDR ETF has a 0.03% TER and -0.20% TD. So the SPDR TER reduction is lost by the SPDR TD increase so there is a net 0% gain? I.e. only your broker (fees) and government (taxes) will win if you swap the Vanguard for the SPDR ETF and vice versa. 🙂

@@wout I compare those two USD based as UCITS which I will be investing in and makes it more apple to apple comparison taking out the FX factor and here SPDR www.trackingdifferences.com/ETF/ISIN/IE00B6YX5C33 actually has a lower difference than www.trackingdifferences.com/ETF/ISIN/IE00B3XXRP09 plus lower fees so for me it's a no-brainer, but if you like Vanguard than that's totally find, surely a good option too. As for fees, if you invest with Trading 212 there are none, if you invest with IBKR those are neglibile in comparison to potential savings. As for taxes, I am UAE based so no taxes 😉 Cheers

Hi and thanks a lot. You can invest in both and you won't see any major difference, especially in the beginning and with smaller amounts, but over time you will. It's your choice of course, but I moved to SPY5 completely, just keeps things simpler in my portfolio 😉 Cheers

@@SmartMoneywithKai thanks, yeah I guess it is best to observe on long run as more or less the portfolio companies are almost same.

Hi, for me personally not that relevant but there are many ESG based ETF's out there, though I still feel in many ways it's more about 'green-washing' than anything else 😉 Cheers

Hi and good question, though State Street knows what they are doing. Their SPDR S&P 500 ETF is the biggest ETF on the S&P by volume and they have been around. The fund is new, but the operator very much trusted. Ultimately up to you, but for me I feel very good with them 👌 Is like buying a new phone from Apple, we don't know how good it will be over 1-2 year period, but knowing Apple, you can trust them. Cheers

@@SmartMoneywithKai that is a good analogy, thanks a lot! I appreciate the time and effort to make this video btw, really helpful for somebody like me who's just starting out. Have a great day! :)

Thanks and my pleasure 🙌

Hi Kai ! Couldn’t find it on Revolut, under what name is it? Any idea why I cannot see it? Regards !

Hi Rafa, Revolut does not offer this ETF, yet another reason why I don't recommend Revolut for investing plus the fact that you can't transfer your portfolio to another broker. Cheers

Hi Marek, don't look at the share price, it does not tell you anything. It depends on shares in circulation. Imagine the same ETF but one has 10 shares only each share would be worth multiple millions. The other ETF based on the same index has 1 million share, each share would be worth few €. Ultimately they all move percentage wise the same if they are based on the same underlying asset in this case the S&P 500 so don't worry about the price difference and most brokers anyways allow you to buy fractional shares so it's easy. Cheers

Hi there, thanks though I am not sure I fully follow the comment 😉 Cheers

@@SmartMoneywithKai Oh it's simple ETF's-short are more luctrative the coming years than Etf's. But if you mix them you get profit from both sides😉

@@EdED-gg6fr Got you now, as I said, I don't short stocks or ETF's, just too risky for me, I prefer lower returns bu sleep peacfully at night 😂 Cheers

@@SmartMoneywithKai Okay, everyone has his method.

Hi you could do it via Interactive Brokers or Trading 212, both work and I have links to both brokers. With Trading 212 you can even get a free share up to €100 if you use my link and you support the channel, win-win 😉 Cheers

Thank you my man 🙌 Good questions. Generally, for EU-based investors, the taxation of investment income (like dividends or capital gains) from an S&P 500 UCITS ETF is primarily determined by the investor's country of residence, not by the country where the stock market is located. This means your tax obligations are more about where you live than where you invest within the EU. So long story short it should really make a big difference between those two if you are based in another EU country 👌 Though I would probably go with zee Germanz 😉 Cheers

@@SmartMoneywithKai thank you for the advice! Keep rocking those videos! 🫡

Thanks and will do my friend 💯

$10.6 Milliarden macht Ihn zu einem der top ETF's und er waechst stetig seid Sie die fees verringert haben, da brauchst du dir kein Kopf machen 👌

Hi 👋, Invesco's ETF with a TER of 0.05% is quite attractive, especially given its low cost. Synthetic ETFs, like this one, use derivatives to replicate index performance, which can offer some advantages like lower tracking errors. However, they do come with counterparty risk since they're reliant on financial institutions to fulfill their obligations. For me I prefer physical replication and in the past this ETF I mentioned in the video had a TER of 0.09% so naturally the results would be lower, but now I am sure they will improve given the lowering of fees, which has a major impact on returns. Cheers.

@@SmartMoneywithKai Might want to keep in mind the greatest advantage of synthetic etfs, Since they don't actually own the stocks they don't have to pay the 15% tax on the dividend that the physicals do. This together with better tracking means they should outperform the physical ones, although apparently this is offset somewhat by the swap fees.

@@Jauhl1 Hi, might be, but I prefer physical as I know there is actual value behind and since I plan to keep those for many years feel better with that option and can't beat 0.03% expense ratio, haven't seen a cheaper one. Cheers

@@SmartMoneywithKai . The added security of holding the assets is of course a valid reason to chose a physical one, you pay a price for that however. The dude you responded to asked why the invesco's synthetic etf outperformed the physical one despite a higher expense ratio. The main answer to that is that synthetic etfs don't pay taxes on dividends because they don't hold the actual assets. This is of course a huge advantage in a S&p 500 etf and why the invesco one likely will outperform your cheap one over time.

@@Jauhl1 Could well be and definitly a point to consider, yet in my case the 2% difference between the two over a 5 year period is worth for me that added feeling of security. For higher returns and emotional rollercoaster I have my Crypto 😉 Cheers and thanks for sharing your insights 🙌

Hi mate, glad to hear you enjoyed it. IBKR takes a flat $2 per conversion so if you converted a smaller amount as a percentage it will be high, but the great thins is for example you exchange €5K it's still only $2 so as a percentage that's very little plus the actual FX rate you get is unbeatable. However, if you don't like it, try using Revolut for it, made a video about this here ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HAx0vQfJ1Ic.html Cheers

@@SmartMoneywithKai thank you for your answer ! It makes more sense now !😊

@@SmartMoneywithKai i tried investing in VUSA a while back, I made sure that I have all of markets open in order to trade and it’s still restricting me, any video suggestion for that as well?

@@Rafawmw My pleasure, anytime ✌️

@@Rafawmw That’s very strange especially if you have all of the permissions enabled 🤔 Then maybe best to reach out directly to their support to double check 👌

Hi and not 100% though I also use ByBit and they have some of the lowest fees in the industry. Though I personally use Nexo, easy to use and really like the platform 👌

Hi and yes, if you live outside the US and buy the UCITS version of SPYL based in Ireland, US will charge a dividend withholding tax on your quarterly dividends. This is usually 30% but can be reduced to 15% if your country has a tax treaty with the US. This only applies to the dividends and as they are low on the S&P500 it's not too bad but for pure dividend investors, this can really hit you. You don't actually pay that money, your broker will just keep it for you and pay it to the US if you filled out a W2BEN form. Cheers

@@SmartMoneywithKaithank you But my country is not in Europian Union And i talk about accumulating etf So US charge me a tax, maybe Irleand and my coutry also, right?

Hi, this depends on your country of residency which tax you are charged but in most cases I would recommend to go with Ireland UCITS if you are not US citizen to avoid the major US estate tax on all your US holdings 👌

@@SmartMoneywithKai i am from Serbia,and here everyone talks obut this difirent.

Danke Sascha und ja, ich denke langfristig aufjedenfall, gerade mit mehr AI trading sollten die Kosten fuer solche ETF's fallen 👌

Hi 👋 Absolutely, here is the link www.justetf.com/en/etf-profile.html?isin=IE00B6YX5C33#stock-exchange scroll down and you can find this ETF on all the different available exchanges and currencies there. Cheers

Depends on your investment strategy. Simply, if you plan on holding shortly (0-3 years ) then yes, if you are long (5+ years) then no

@@kylo7018 thanks Kylo 👍🏻

Hi and I would agree, I personally don't and convert all my EUR to USD as I invest long-term and I think USD will perform better than EUR over next 10-20 years. Cheers

Hi, just checked and sadly it seems at this stage they don't have it offered yet. Cheers

I have the spdr etf on Scalable

Thanks a lot 🙌 Happy Sunday 👋

Hi, not quite sure I understand your question but yes as non-US citizen we can't buy ETF's directly listed in the US, instead UCITS ETF and this one only costs 0.03% and is in USD, but also available in EUR so for me this is the perfect option 👌

Thank you

My pleasure 👋

@@SmartMoneywithKai is it accumulating fund?

Hi and yes, I would say so, this way you avoid FX fees. I buy it in USD though, as I mostly earn in USD and I think long-term it's the strongest currency. I also buy it on London Stock Exchange. Actually made a new video around this topic dropping in a few minutes on my channel 🙌

Hi you can buy it via Trading 212 👌 0.03% is the fund management fee, what State Street takes out of your returns for managing that fund, you don't have to pay them. Taxes are separate depending on your country of residence 👌

@@SmartMoneywithKai I am investing from Serbia, i thougt that i invest via SPYL on Irleand domicil.I saw that i can invest in xetra,but can i conect xetra and inetractive brokers and invest?

I did not find SPYL on XETRA on IBKR, but you can buy SPYL in EUR in Amsterdam AEB 👌

@@SmartMoneywithKai Thank you very much.I have one more question. In my country there are many fraud about this.Please tell me where i can find an official average yearly income for S&P 500, in my case SPYL.Thank you very much.

@@IvanStancic-m7f My pleasure and sure, here you go www.justetf.com/en/etf-profile.html?isin=IE000XZSV718

Thanks great, nobody should convince anyone that one investment type is better than another, it has to work for you. And buying S&P500 ETF is definitely a solid choice 👌 Cheers

If someone sees this can they please tell what a tax benefit account is? I have 2 broker accounts with scalable and trade republic

@@CindyLenzewski an account where you pay less taxes than the regular taxes already credited. you gotta see the account your country or bank offer. in France we have a PEA where you can buy international ETFs at a max 18% fixed tax

Yeah would like to know what a tax benefit account is too. Thanks!