Which S&P 500 ETF Index Fund Is Better? Vanguard VOO or VUSD

The last few days before I wrote this article, the market took a big plunge after CPI (Consumer Price Index) rose by 0.3% and caused a 1000 points drop in Dow. (Not as bad as Covid, which drop almost 2000 points)

Many people panic and the market started to plunge in anticipation that this increase will causes businesse to collapse.

Real investors knows that this is a good opportunity to pick up good companies.

What is a good company?

In my opinion…

1. They are companies that have sales daily, products that people would be buying daily (eg. Apple, Samsung, Petroleum Companies, Colgate Palmolive) — Just think of all the brands you’re buying on most days, even when you did not get a pay raise due to bad economy.
2. They are constantly innovating current products and creating new products to increase market share(eg. Apple etc)

Usually these companies are already in the S&P 500 index funds and let’s look at what we need to look for when investing in S&P 500 index funds.

We can look at 2 things…

1. Their returns over time
2. Their yearly fees
3. Their dividends (Note that the Dividends are tax 30% in states but 15% for funds that are domiciled in UK)

Let’s do some comparison at this point in time

The most popular S&P 500 ETF index fund is the Vanguard VOO ETF and VUSD ETF, so let’s compare them.

Vanguard ETF VOO Performance

VUSD S&P 500 UCITS ETF (USD) Distributing (UK Domiciled Fund)

Seems like in terms of performance, VOO seems to outperform.

Now let’s compare their fees now

VOO Fees is at 0.03% Per Year

VUSD Fees Is 0.07%

Clearly the winner is VOO cos you pay more than double the fees with VUSD

Now let’s Compare Dividends

VOO Dividends At 1.59% in 2021

VUSD Dividend Is 1.25% in 2021

So if your dividend for VOO after tax is 70% of 1.59% = 1.113%
For VUSD after tax, your return Dividend is 85% of 1.25% = 1.06%

Again VOO WINS…

So I guess you can already conclude that the Winner Is VOO!

You can invest VOO ETF Index Fund either through fundsupermart, interactive brokers or moo moo.

I used to use interactive brokers until I found Moo Moo which gives a better deal.

Here are MooMoo Trading Fees which I find it rather reasonable

At US$0.99 for US stocks, HK$3 for HK stocks and S$0.99 for SG stocks, the minimum commission fee required is also low — even more so than the likes of Tiger Brokers and Interactive Brokers (IBKR)and minimum 0.03% of trade value (min. SGD 1.50 per trade) for platform fees. In total, you get charged a minimum of $2.49 per trade with Moomoo.

*Updates 14 May 2022, For Singaporean, it’s $0 Commission For US Stocks FOREVER on MooMoo!

Like most platform, they also have holding fees for your stocks.

For example, MooMoo charges just 0.03% of the transaction amount for stocks on SGX and US$0.0049 per share for US stocks.

Plus now you have a chance to Win up to 5 free stocks worth $3 — $3,500 each from MooMoo.

You Can Go To Moo Moo by Clicking Here & Get Up To 1 Tesla Share

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Blessings To You,

Winston Ye

P.S: What other question do you have about investing I can write for you. Leave in the comments below.