What are the differences between IVV and IUSA
What are the differences between IVV and IUSA
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Drecker · External communityPost link
External question — Personal Finance Stack Exchange
Author: Drecker
Original post: https://money.stackexchange.com/questions/149037
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I'm looking into various index-tracking ETFs. I was suprised by the differences between IVV
ETF tracking S&P 500 traded in the US
and IUSA
S&P 500 traded in the Europe
.
An obvious difference is that the first one is traded on the NYSE Arca in the US while the other is traded in Mexico as well as various exchanges across Europe. However, while they track the same index and are provided by BlackRock, they have slightly different yields. I assume that in part, this is caused by higher fees (0.03% for IVV and 0.07% for IUSA).
Nevertheless, when you look up the performance by the calendar year, you'll find that the total return of IVV yearly is 0.3% to 0.4% higher than IUSA (much higher than the difference between the management fees 0.04%). What is the reason for that?
Other than performance, is there any reason for me (from Europe) to go with one or the other? I understand that the choice of the broker may limit my options as brokers usually have access to just one exchange or another (and thus the aforementioned ETFs). However, in this age it does not seem to be very complicated to set up an account at the broker who has access to the desired exchange, so this should not be an issue.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Drecker Source score (net votes, not local likes): 0 Original post: https://money.stackexchange.com/questions/149037 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm looking into various index-tracking ETFs. I was suprised by the differences between IVV ETF tracking S&P 500 traded in the US and IUSA S&P 500 traded in the Europe . An obvious difference is that the first one is traded on the NYSE Arca in the US while the other is traded in Mexico as well as various exchanges across Europe. However, while they track the same index and are provided by BlackRock, they have slightly different yields. I assume that in part, this is caused by higher fees (0.03% for IVV and 0.07% for IUSA). Nevertheless, when you look up the performance by the calendar year, you'll find that the total return of IVV yearly is 0.3% to 0.4% higher than IUSA (much higher than the difference between the management fees 0.04%). What is the reason for that? Other than performance, is there any reason for me (from Europe) to go with one or the other? I understand that the choice of the broker may limit my options as brokers usually have access to just one exchange or another (and thus the aforementioned ETFs). However, in this age it does not seem to be very complicated to set up an account at the broker who has access to the desired exchange, so this should not be an issue.
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