Why VUSA ETF Lags While S&P 500 Hits Record Highs? $VUSA (-0,1%)
You might notice the S&P 500 is hitting all-time highs, yet the VUSA ETF (by Vanguard) doesn’t reflect that same peak. Here's why:
- Currency Impact: VUSA is priced in EUR or GBP. If the USD weakens, it drags down your returns even if U.S. stocks are rising.
- Dividend Payouts: VUSA distributes dividends instead of reinvesting them, so the ETF’s price doesn’t fully mirror the S&P 500's total return.
- Tracking & Costs: Minimal, but real. Small fees and timing differences can cause slight underperformance.
- Trading Hours: VUSA trades during European hours, while the U.S. market moves after hours, creating price gaps.
✅ Tips to minimize the gap:
- Consider accumulating ETFs like $CSPX (-0,1%)
(iShares) that reinvest dividends. - If you're bullish on the USD, hedge currency exposure or invest via U.S.-domiciled ETFs (if allowed).
- Reinvest dividends manually if using VUSA.
