In recent years, the United States stock market, particularly the S&P 500 index, has consistently outperformed many other global markets. The S&P 500, which represents 500 of the largest publicly traded companies in the US, has shown robust returns and resilience.
After some research, best options to get exposure as a European investor are:
- Buy CFD without owning underlying asset: Easily get them in every broker platform. Tickers like VOO or SPY are the most common.
- Buy UCITS ETF that replicates S&P500: Best option for long-term investors. Tickers like VUAA,VUSA,CSPX are the most common. I would suggest choosing the ETFs with the most liquidity. Also, decide between accumulating and distributing dividends.
- Buy Index Funds (Fondos Indexados): A recently attractive option, especially for Spanish investors, is using platforms like MyInvestor to buy index funds such as the iShares US Equity Index Fund (clase S). This approach offers a significant tax advantage: in Spain, investment funds allow you to transfer your capital between different funds without triggering capital gains taxes ("traspasos sin tributar", amparándose en el régimen de diferimiento fiscal del artículo 94 de la Ley del IRPF). This means you can rebalance or move your money without a tax hit until you actually withdraw it.
CFDs and ETFs generally have 15% taxes on US dividends (if you are based in Spain). Total expense Ratios tend to be lower with CFDs, but i would rather own the underlying asset.
Finally, I would recommend using Interactive Brokers (IBKR) as your broker. IBKR offers a significant advantage for Spanish investors looking to invest in US markets: a recurring investment option that incurs no fees when exchanging from EUR to USD. This feature allows you to set up regular investments, such as monthly contributions, without worrying about currency exchange fees eating into your returns. This can be particularly beneficial for long-term investors who want to implement a dollar-cost averaging strategy while minimizing costs.