A US ETF is usually the core of most investors\u2019 portfolios. For Europeans, the questions of CSPX vs VUSA<\/em> or VUSA vs IUSA<\/em> often pop up.<\/p>\n In this post, I\u2019ll do my best to answer the trilemma and give my recommendation.<\/p>\n Ticker symbols: CSPX, SXR8, CSP1<\/em><\/p>\n CSPX (iShares Core S&P 500 UCITS ETF (Acc.))<\/strong> is an ETF tracking the S&P 500 \u2013 an index composed of the largest US companies weighted by market-cap.<\/p>\n It has a TER<\/a> of 0.07% and it\u2019s an\u00a0accumulating fund\u00a0<\/em>(it reinvests the dividends instead of distributing them to investors).<\/p>\n Currently, the fund manages $55b worth of assets.<\/p>\n CSPX is one of the go-to options for the US allocation of many investors.<\/p>\n Ticker symbols: IUSA, IDUS<\/em><\/p>\n IUSA (iShares Core S&P 500 UCITS ETF)<\/strong> is also an ETF<\/a> tracking the S&P 500 offered by iShares.<\/p>\n It\u2019s the distributing<\/em> equivalent of CSPX. They\u2019re both offered by iShares, having all the same characteristics, with the only difference being that IUSA pays dividends to shareholders<\/a>.<\/p>\n Same as CSPX, its TER is 0.07%.<\/p>\n The funds currently holds $12b worth of assets and it\u2019s also one of the ETFs that\u2019s commonly held by European investors.<\/p>\n Ticker symbols: VUSA, VUSD<\/em><\/p>\n VUSA (Vanguard S&P 500 UCITS ETF)<\/strong> is almost the same as IUSA, but this ETF is offered by Vanguard.<\/p>\n They have exactly the same characteristics: both track the S&P 500<\/a>, have 0.07% expense ratio, and pay out dividends.<\/p>\n The only differences are that VUSA is a larger fund (manages $27b worth of assets) and does full replication of the S&P 500. IUSA does optimized sampling of the index, which means that the performance of VUSA is closer to that of the S&P 500. This is a minor difference so please don\u2019t feel like you\u2019ve made a \u201cmistake\u201d if you already hold IUSA.<\/p>\n As can be seen by the total assets, VUSA is the preferred option for many investors.<\/p>\n All three ETFs are very similar to each other. So there\u2019s no surprise why many investors are unsure which one to pick.<\/p>\n The main difference between them is their distribution policy<\/strong><\/a>:<\/p>\n This means that the amount of expenses you\u2019d have depends on the\u00a0dividend tax<\/a>\u00a0treatment in your country. However, rather than leaving it at\u00a0\u201cit depends\u201d<\/em>, I\u2019d like to give an actual answer.<\/p>\n I actually have a strong preference for one of these ETFs before the others, even if we assume that dividends aren\u2019t taxed at all.<\/p>\n Why do I choose CSPX, although these ETFs have the same\u00a0expense ratio<\/strong> and we assume there are no extra costs<\/strong><\/a>?<\/p>\n It\u2019s simple: I prefer accumulating to distributing ETFs.<\/strong><\/p>\n Of course, it boils down to preference, but my opinion is that every<\/strong> investor should prefer accumulating funds to distributing funds<\/a>.<\/p>\n Let me explain why you should as well.<\/p>\n Since you\u2019re comparing CSPX vs VUSA, you\u2019re probably still in the \u201caccumulation phase\u201d (you\u2019re investing, rather than living off of your investments<\/a>). Also, you\u2019re analyzing S&P 500 funds, which means you\u2019re into index investing<\/a>.<\/p>\n These statements bring us to the conclusion that you\u2019re looking for a long-term vehicle to park your extra money.<\/strong><\/p>\n Given that assumption, why would you like the fund to take out a part of its value<\/em> in order to give you more cash<\/em> every quarter?<\/p>\n Cash<\/em> is what you\u2019re trying to get rid of in the first place \u2013 that\u2019s why you\u2019re becoming an investor<\/a>.<\/p>\n There are only two things that you could do with some extra money every quarter:<\/p>\n\nCSPX
\n<\/h2>\n\nIUSA
\n<\/h2>\n\nVUSA
\n<\/h2>\n\nCSPX vs VUSA\/IUSA
\n<\/h2>\n\n
\nMonkWealth\u2019s Choice: CSPX<\/strong>
\n<\/h3>\nWhy?<\/strong><\/h4>\n
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