Cheapest S&P 500 ETF - SPXL (GBP) London listed

SPDR® S&P® 500 UCITS ETF (Acc) - SPXL
TER 0.03%

@tom.winterton

Please could you add LSE:SPXL
SPDR® S&P® 500 UCITS ETF (Acc)

Thanks

Hi @USER2023, SPXL is a 3X leveraged ETF I believe…

I don’t think this is what you are looking for? It only trades in USD so it will not be available on IE.

Perhaps you mean SPX5? This is on IE advertised as TER 0.09%. I’d question that with IE because it’s 0.03% on Just ETF

Hi @Carl
Please don’t confuse this with American ETF SPXL | Direxion Daily S&P 500 Bull 3X Shares Overview | MarketWatch

I’ve requested LSE listed ETF which is traded in GBP

London Stock Exchange
Trading Currency : GBP
Listed on : 02 Nov 2023
Ticker : SPXL
Bloomberg Code : SPXL LN
https://www.bloomberg.com/quote/SPXL:LN

Yes, I see that on Bloomberg, thanks. It’s newly listed so probably why I couldn’t find it on Just ETF or Morning Star.

That would definitely be worth adding to IE with such a competitive TER!

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It’s a new ETF. I would wait until it’s got some liquidity before buying.

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@Gandalf Good point

More than 50,000 in volume today.

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@NikitaBlinkov
Please could you add this ETF
SPXL (GBP) LSE listed

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I am unsure if the information you have is correct as the TER on Morningstar is 0.09% which makes it slightly more expensive than the more popular S&P 500 Tracker Funds who also have performance history and data to evaluate them which instantly makes them the better choice.

A major red flag for me is that there is both conflicting information on the internet about the fund (specifically the TER, share class size, and sometimes the tracker code) and a complete absence of most, if not all, useful information regarding it’s performance - especially compared to it’s competitors. This makes it a poor investment choice. Obviously, this will be because it has only just recently listed and there are some potential positives such as it’s method of tracking (physical replication) and it’s share class is not tiny for a newly-listed fund- between $700-£900ish million - suggesting that it could perform well over time, but it is simply beaten on these factors by most of the major competitors who also have a reliable track record.

For example, VUAG which is the S&P 500 index tracker I invest in. It’s TER is 0.07%, has a share class size of $7.832 billion, is traded far more frequently than SPXL (although trading volume is not a reliable indicator of liquidity), has a performance history demonstrating 3 year annualised returns of 11.32% and a tighter bid-ask spread (a more accurate measure of a funds liquidity) of 0.06 (0.088%) compared to 0.014 (0.161%).

Trading volume is unreliable as a measure of liquidity. For example, one large investor could buy 1,000 shares etc. in one trade. Whilst it is important, It is more important to understand how often trades take place. It shows that although 52,063 shares were traded on the last trading day, only 8 actual trades took place. Compared to VUAG where 91,183 shares were traded in 901 trades. On the second metric of frequency of trading, I have been unable to find this information relating specifically to the acc class of SPXL, but I have for it’s sister Dist. ETF that launched on LSE at the same time. It shows that although it had a high volume of shares traded yesterday (52,063), the number of days where no shares were traded last month outweigh the number of days where shares were traded (13 and 7, respectively). Compare that to VUAG where there is a high trading volume every single day. It is therefore more liquid.

Personally, I wouldn’t bother investing in SPXL, at the very least not for a couple of years when there is more fund performance information available, because, even if the TER is 0.03%, this would only equate to a saving of a only a few pennies per £1,000 invested in that fund. The risk-adjusted return simply wouldn’t be worth it, especially, as this is already a competitive section of the market and almost any popular S&P 500 tracker will beat SPXL on any metric at the moment.

As a side note and with the spirit of trying to be helpful rather than patronising or condescending, it is worth gathering information on funds from a variety of different sources, including the Funds Prospectus and Key Investor Information. Each website has it’s own pros and cons, like justETF can be a bit delayed whilst I find Google Finance is only useful for tracking the daily performance of my portfolio and the underlying funds in real time. Finally, as kind of implied throughout, it is always best to do a side by side comparison with a leading ETF that tracks the same index as this makes it easier to evaluate a fund. I have left the sources I have used below. I hope that this has been useful.

SPDR S&P 500 UCITS ETF (Acc) (IE000XZSV718.SG) Stock Price, News, Quote & History - Yahoo Finance,