The S&P 500 is a market-cap weighted index of 500 large US-listed companies, maintained by S&P Dow Jones Indices. It serves as the benchmark for the entire US equity market — representing approximately 80% of total US market capitalisation, worth over USD 48 trillion. When people say "invest in the US market," they almost always mean the S&P 500.
The historical performance record is compelling. Over the 10 years to October 2025, the S&P 500 delivered an annualised return of approximately 10.65% in USD. A hypothetical RM 10,000 invested in the S&P 500 at the start of 2015 would have grown to roughly RM 35,461 by end-2025 — a 254% total return. Over the same period, the FBM KLCI (Malaysia's benchmark) returned approximately -0.70% per year.
Despite its popularity, there is currently no S&P 500 ETF listed on Bursa Malaysia. Malaysian investors must access it through international brokerages. The closest Bursa-listed alternatives are the EQ8 Dow Jones US Titans 50 ETF (0827EA) — which tracks 50 large halal US companies — and US equity unit trusts sold by local fund managers. But there is no direct S&P 500 tracker on Bursa.
S&P Global charges index licensing fees for funds that track the S&P 500. Combined with regulatory requirements for foreign-asset ETFs on Bursa, the economics have not yet led a Malaysian fund manager to launch a Bursa-listed S&P 500 ETF. This may change as Bursa's ETF market matures, but for now, investors must go international.
The single most important and most commonly overlooked factor for Malaysian investors choosing between S&P 500 ETFs is US dividend withholding tax (WHT). This is deducted at source before dividends reach you or are reinvested — and the difference between the US and Ireland rates is substantial over decades.
No US-Malaysia tax treaty
Full 30% deducted on all dividends
Ireland-US tax treaty
Only 15% at fund level
Profits from selling ETFs
are not taxed locally
CSPX, VUAA, and SPYL are all "accumulating" ETFs — dividends are reinvested within the fund automatically rather than distributed to you. This means no dividend withholding tax event occurs during the holding period. The 15% WHT is applied at the fund level on the underlying stock dividends, but you don't experience it as a cash deduction. You only experience a tax event (and only locally if Malaysia introduces CGT) when you sell your ETF units. This makes accumulating UCITS ETFs structurally more tax-efficient for long-term compounding than distributing ETFs like VOO or SPY.
Non-US persons (including Malaysians) holding US-domiciled assets (like VOO, SPY, IVV) may be subject to US estate tax of up to 40% on holdings above USD 60,000 at the time of death. Ireland-domiciled ETFs (CSPX, VUAA, SPYL) are not US-domiciled assets and are generally not subject to US estate tax. For portfolios under USD 60,000, this risk is moot — but as wealth grows, this becomes a serious consideration in favour of UCITS ETFs.
Illustrative projection: RM 10,000 invested in S&P 500 ETF with 10% annual return and 1.5% annual dividend yield. Assumes 30-year holding period. Accumulating UCITS (15% WHT handled internally) vs distributing US ETF (30% WHT on dividends). Tax drag compounds significantly over decades.
| Feature | CSPX | VUAA | SPYL | VOO | SPY |
|---|---|---|---|---|---|
| Full name | iShares Core S&P 500 UCITS | Vanguard S&P 500 UCITS (Acc) | SPDR S&P 500 UCITS (Acc) | Vanguard S&P 500 ETF | SPDR S&P 500 ETF Trust |
| Domicile | 🇮🇪 Ireland | 🇮🇪 Ireland | 🇮🇪 Ireland | 🇺🇸 USA | 🇺🇸 USA |
| Exchange | LSE (London) | LSE (London) | LSE (London) | NYSE Arca | NYSE Arca |
| TER | 0.07% | 0.07% | 0.03% ⭐ | 0.03% ⭐ | 0.0945% |
| AUM | ~USD 108B | ~USD 26B | ~USD 7B | ~USD 600B | ~USD 570B |
| Price per unit | ~USD 725 | ~USD 114 | ~USD 15 ⭐ | ~USD 545 | ~USD 590 |
| Dividends | Accumulating | Accumulating | Accumulating | Distributing (Qtrly) | Distributing (Qtrly) |
| Div WHT (MY) | 15% (Ireland treaty) | 15% (Ireland treaty) | 15% (Ireland treaty) | 30% (no treaty) | 30% (no treaty) |
| US Estate Tax risk | None (non-US domicile) | None | None | >USD 60K exposure | >USD 60K exposure |
| Inception | 2010 | 2019 | Oct 2023 | 2010 | 1993 |
| Best broker (MY) | IBKR | IBKR | IBKR | moomoo · Rakuten | moomoo · Rakuten |
| Verdict | Most liquid UCITS | Great all-rounder | Cheapest TER + low price | Cheapest TER, WHT risk | Most liquid, highest fee |
SPYL (SPDR S&P 500 UCITS ETF) offers the lowest TER at 0.03%, the lowest entry price (~USD 15/unit — making DCA easy), is accumulating (no WHT events), and is Ireland-domiciled (15% WHT at fund level vs 30%). For those who want the most battle-tested option, CSPX (iShares, launched 2010) has the largest UCITS S&P 500 AUM at ~USD 108 billion with tight spreads. Both are accessed via IBKR (cheapest broker for LSE-listed ETFs) or moomoo Malaysia (SC-licensed, simpler for beginners).
If your priority is the most tax-efficient route (Ireland UCITS, 15% WHT, no US estate tax) with the lowest total cost, IBKR is clearly the best broker for Malaysian investors. It offers full LSE access, the tightest FX spreads, and the lowest per-trade commissions for European-listed ETFs. The slightly more complex interface is a worthwhile trade-off for long-term investors. If you want everything within a single SC-licensed Malaysian app, moomoo is the next best option.
The S&P 500 is priced in USD. When you invest in CSPX or VOO, your MYR returns reflect both S&P 500 performance and USD/MYR movements. From 2015 to 2025, the Ringgit depreciated against the USD by roughly 20–25%, which enhanced Malaysian investors' MYR returns from USD assets. However, currency movements go both ways — a strengthening Ringgit would reduce your MYR returns. Over the long term (10+ years), the currency effect tends to average out, and the fundamental driver of returns remains the underlying S&P 500 performance.