Best S&P 500 ETF in Australia (2026)
S&P 500 ETFs give you the 500 biggest US companies. With the holdings the same, fees, hedging and size decide it.
Of the 5 ETFs we compared, VTS has the lowest fee (0.03% a year) and IVV is the largest ($14.9bn). IVV had the best five-year return, +13.4% a year. Over 5 years, IVV tracked its index most closely after fees. The right one depends on your goals: read what to consider below.
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. General information only, not a recommendation.
All the options compared
S&P 500 and US total market ETFs
IVV and SPY track the S&P 500. VTS tracks the whole US market, about 3,500 companies. QUS gives each S&P 500 company an equal weight.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| IVV | iShares S&P 500 ETFLargestBest 5Y | 0.04% | $14.9bn | +10.1% | +13.4% | 0.02% |
| VTS | Vanguard US Total Market Shares Index ETFLowest fee | 0.03% | $7.3bn | +9.8% | +12.4% | 0.02% |
| QUS | Betashares S&P 500 Equal Weight ETF | 0.29% | $1.4bn | +6.6% | +7.9% | 0.06% |
| SPY | State Street SPDR S&P 500 ETF | 0.09% | $403m | +7.4% | +12.9% | 0.03% |
Currency-hedged
Takes out the effect of the Australian dollar on your returns.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| IHVV | iShares S&P 500 (AUD Hedged) ETF | 0.10% | $4.3bn | +15.4% | +10.9% | 0.02% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each S&P 500 ETF tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, IVV tracked its index most closely among the S&P 500 and US total market ETFs, beating it by 0.22% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| IVVS&P 500 Index (net, AUD) | 0.04% | +0.22% | +0.18% | +0.22% | Ahead of its index |
| IHVVS&P 500 Index (net, AUD hedged) | 0.10% | +0.07% | +0.03% | +0.12% | Ahead of its index |
| VTSMorningstar US Total Market Index | 0.03% | +0.00% | -0.01% | +0.00% | Tracking well |
| QUSS&P 500 Equal Weight Index | 0.29% | -0.05% | -0.02% | +0.00% | Tracking well |
| SPYS&P 500 Index | 0.09% | -0.14% | -0.16% | -0.14% | Tracking well |
Gap = fund return after fees minus its benchmark. Issuer figures to October 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- IVV vs VTS. Near-identical returns over time. VTS is US-domiciled, which means a US tax form (W-8BEN) and US estate tax considerations for large holdings.
- Concentration. The top 10 companies are now over a third of the S&P 500. QUS is one way to spread that out.
- Hedging. IHVV removes currency swings. Unhedged has tended to hold up better in sell-offs.
