Investing in the S&P 500 from the UK is an easy way to gain exposure to the US stock market. However, it’s important to remember that, as with any investment, the price of shares will rise and fall.
The Investing in the S&P 500 from the UK is made up of the 500 largest companies listed on the US stock exchanges and is the most popular way to track the performance of the US economy. The good news is it’s easier than ever to buy a fund that mirrors the S&P 500. Simply find a broker or platform that lets you trade US stocks and you can start investing. You’ll also need to choose an account that will let you pay fees like commission and foreign exchange rates (to convert your pounds into dollars).
There are a number of different funds that track the S&P 500, but it’s important to find one with low fees. These can add up over time, so look for ones with a low total expense ratio (TER). You should also consider whether the fund charges extra fees for buying and selling, such as transaction fees, as this can make a difference to your returns.
Top Strategies for Investing in the S&P 500 as a UK Resident
Inflation is currently running at 8.1% in the UK and expected to reach 10% by the end of 2022, so a S&P 500 index fund can be an excellent choice for those looking to hedge against inflation. It can also help to diversify your portfolio and reduce risk, by spreading your money across a range of assets and sectors.