Vanguard S&P 500 US Shares Index ETF (V500) — Review & Analysis

V500 is Vanguard's direct attack on iShares' dominance in Australian S&P 500 exposure, with $115 million in assets as at May 2026 — a rapid debut. Vanguard launched V500 on 4 March 2026 at 0.07% MER — three basis points more than IVV (0.04%) but with the Vanguard brand pull. The launch fundamentally changed the US equity ETF competitive landscape on the ASX: investors who wanted Vanguard's brand previously had to use VTS (broader US market, 0.03% MER but US-domiciled and requiring W-8BEN paperwork). V500 is Australian-domiciled, avoiding both issues.

To compare V500 side-by-side with every other ETF on the ASX, see the full ETF directory.

V500 tracks the same S&P 500 Index as IVV — the 500 largest US companies. As at May 2026, the top 10 holdings make up approximately 35% of the index — Microsoft, Apple, Nvidia, Amazon, Meta, Alphabet (A and C share classes), Berkshire Hathaway, Eli Lilly and Broadcom. By sector V500 is approximately 31% information technology, 13% financials, 12% healthcare and 10% consumer discretionary. V500's gathered $115M in just 2 months — among the fastest debut raises of 2026. The fund will compound over time as Vanguard customers consolidate their US equity exposure into the Vanguard ecosystem.

V500 pays distributions quarterly (late March, June, September and December) at a modest yield. As at May 2026, the trailing 12-month cash distribution yield runs around 1.2% — V500 is a capital-growth fund, not an income fund. There are no franking credits — the underlying holdings are US-domiciled. V500 is currency-unhedged. For the AUD-hedged version, see V5AH (also launched 4 March 2026, 0.09% MER).

V500 is the right choice if you specifically want Vanguard-branded S&P 500 exposure from Australia. For pure cost minimisation, IVV at 0.04% remains the cheapest option (saving 3 basis points). For broadest US coverage, VTS at 0.03% covers 3,500 stocks vs V500's 500. The new launch is most useful for investors building 100% Vanguard portfolios who want all-Vanguard tickers across their core. See IVV vs VGS vs VTS — which international ETF should you buy.