ETFs like VOO (Vanguard S&P 500 ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are not available on UK broker platforms such as Trading 212, Interactive Investor, etc.
You may have seen YouTube videos which recommend these ETFs.
Here are some equivalents which are usually available to UK and non-USA citizens.
Whole market Funds
VT & VTWAX
Similar to Vanguard FTSE All-World UCITS ETF (VWRL) and tracks the FTSE All-World Index. VWRP is the accumulation version of VWRL.
VTSAX & VTI
For the US ETFs Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) or Vanguard Total Stock Market ETF (VTI), UK investors can try the Legal & General UK Index Trust (C) Accumulation (e.g. from Hargreaves Lansdown). This fund tracks the performance of the FTSE All-Share Index.
VOO & SPY
 |
| CSPX is a good substitute for VOO or SPY. SWDA and EQQQ added for comparison purposes. |
UK equivalents to US large-cap ETFs like Vanguard S&P 500 ETF (VOO) or SPDR S&P 500 ETF Trust (SPY) include the iShares Core S&P 500 UCITS ETF (CSPX). CSPX mirrors the performance of the S&P 500 Index. A hedged version, GSPX also exists if you believe the UK GBP will strengthen in the next few years!
Large Cap and Growth Funds
VFIAX
The UK equivalent to Vanguard 500 Index Fund Admiral Shares (VFIAX) is represented by the HSBC FTSE 100 Index Fund (C). This fund tracks the FTSE 100 Index, composed of the leading UK stocks with potential for steady growth and dividend income.
QQQ & QQQM
For exposure to technology and innovation sectors akin to Invesco QQQ Trust (QQQ) or Invesco QQQM ETF (QQQM), UK investors can consider the Invesco EQQQ NASDAQ-100 UCITS ETF (EQQQ). EQQQ tracks the performance of the NASDAQ-100 Index, comprising non-financial companies listed on the NASDAQ Stock Market, offering growth potential driven by leading global technology firms.
You may like to look at IITU and IUCM also.
VTV
UK investors seeking US value stocks similar to Vanguard Value ETF (VTV) can explore the SPDR iShares Russell 1000 US capped Value ETF (R1VL).
VBR & AVUV
UK equivalents to US small-cap value ETFs like Vanguard Small-Cap Value ETF (VBR) or Avantis U.S. Small Cap Value ETF (AVUV) include the iShares MSCI UK Small Cap ETF (CUKS). CUKS tracks the MSCI UK Small Cap Index, offering exposure to small-cap stocks listed on the London Stock Exchange, emphasizing companies with strong growth potential and attractive valuations. It is not currently available on Trading212 but it is on Interactive Investor.
Dividend Funds
UK equivalents focusing on dividend-paying stocks provide investors with stable income streams and potential for capital appreciation.
SCHD
For exposure to US dividend equities similar to Schwab U.S. Dividend Equity ETF (SCHD), UK investors can consider the SPDR S&P US Dividend Aristocrats UCITS ETF (UKDV). UKDV tracks the performance of high-dividend-yielding US companies that have increased dividends for at least 20 consecutive years, emphasizing dividend sustainability and income generation.
See also IUKD above and HDLG instead of UKDV.
VYM
VYM holds top US dividend paying stocks. The UK equivalent to Vanguard High Dividend Yield ETF (VYM) is the iShares UK Dividend UCITS ETF (IUKD). IUKD invests in UK companies with a track record of consistent dividend payments, offering income stability and exposure to sectors such as utilities, telecommunications, and consumer staples. Performance of IUKD has not been great, but if you prefer US dividend stocks, bear in mind that a 15% withholding tax is deducted from dividends paid to UK investors.
Dividend stocks like HDLG (3.4% div), USDV or GBDV from S&P500 may be preferable, with HDLG my favourite (dividends around 3.4%). Dividend payments from US companies are subject to automatic withholding tax of 15%.
Global and International Funds
UK equivalents to global and international funds provide diversified exposure outside the UK market, enhancing portfolio diversification and capturing global economic growth.
VXUS
For broader international equity exposure akin to Vanguard Total International Stock ETF (VXUS), UK investors can consider the HSBC MSCI World UCITS ETF (HMWO). HMWO tracks the MSCI World Index, encompassing large and mid-cap stocks across developed and emerging markets outside the UK and US, providing comprehensive global diversification. This is also very similar to the MSCI benchmark ETF SWDA which has a slightly higher TER charge.
VGT
Investors seeking exposure to global technology companies similar to Vanguard Information Technology ETF (VGT) should try EQQQ or the Tech ETFs listed above such as WTEC.
Bond Funds
UK equivalents to US bond funds offer fixed-income opportunities with varying risk profiles and investment objectives.
BND
The UK equivalent to Vanguard Total Bond Market ETF (BND) includes funds such as the iShares Core UK Gilts UCITS ETF (IGLT). IGLT focuses on UK government bonds, offering income stability and capital preservation with minimal credit risk, suitable for investors seeking low-risk fixed-income investments. IGLT has performed poorly however (lost money!) and you may wish to buy a money market fund such as CSH2 which pays a steady rate (currently around 5%) based on the overnight interbank rate.
Technology Sector Funds
Global and USA funds are available.
XLK
Main UK alternatives are TECW (WTEC) and GXLK (SXLK). Also TNOW and WITS. XLKQ is a good synthetic, capped, accumulating ETF too with good performance which may outperform uncapped Tech stocks in 2025.
You might also wish to consider IITU+IUCM together for a USA tech combination.
 |
| 5 Year performance |
My top 6
This exercise has been quite interesting for me and I will now have to look hard at maybe switching to the following ETFs which may suit my performance-driven requirements better (1yr 2024 gain + 5yr gain in bold in brackets):
- CSPX S&P500 Core (30%,103%)
- EQQQ NASDAQ (31%, 153%)
- HDLG for dividends (18% inc. dividends, 39%) - not really for me at this time
- IITU (some overlap with XLKQ) (43%, 202%) - my favourite satellite stock
- CSH2 for interest on cash (inside an ISA so no tax calculations needed) (5%, 13%)
- XLKQ for US technology (46%, 211%)
No comments:
Post a Comment