How to Invest in the S&P 500 from Australia (2026 Guide)
Australians have two routes to S&P 500 exposure: an ASX-listed ETF in AUD (no FX fee), or a direct US-listed ETF via Stake's Wall Street product. Here's what each option costs, how they differ, and which suits most investors.
Key takeaways
- ·The simplest route for most Australians: buy IVV (iShares S&P 500 ETF, ASX-listed) in AUD through Stake's ASX account — A$3 brokerage, no FX fee, CHESS-sponsored.
- ·VTS (Vanguard US Total Market, ASX-listed) is broader than the S&P 500 — covers 3,500+ US companies including small and mid-caps, same 0.03% MER.
- ·The direct US route (VOO, SPY via Stake Wall Street) incurs a 0.55% FX fee on your AUD deposit — higher cost for the same underlying exposure.
- ·S&P 500 ETF distributions are taxed as ordinary income in Australia. No Australian franking credits.
- ·Currency risk applies to unhedged ETFs: your AUD returns depend on both US market performance and AUD/USD movements. IHVV is the hedged option.
What is the S&P 500?
The S&P 500 (Standard & Poor's 500) is a stock market index tracking the 500 largest publicly listed companies in the United States by market capitalisation. It's widely used as a benchmark for the US stock market and the global economy.
Companies in the S&P 500 include Apple, Microsoft, Nvidia, Amazon, Alphabet (Google), Meta, Tesla, Berkshire Hathaway, JPMorgan Chase, and hundreds more. Together they represent roughly 80% of the total US stock market capitalisation.
Investing in an S&P 500 index fund gives you proportional exposure to all 500 companies in a single purchase — without having to pick individual stocks. This is the core of passive index investing.
Two ways to invest in the S&P 500 from Australia
Both routes track the same index. The difference is where you buy and what it costs.
| Feature | ASX ETF (recommended) | US ETF via Wall Street |
|---|---|---|
| Transaction currency | AUD | USD |
| FX fee | None | 0.55% on deposit |
| Brokerage (Stake) | A$3 per trade | US$3 per trade |
| CHESS-sponsored | Yes | No (custody) |
| MER (IVV) | 0.03% p.a. | 0.03% p.a. |
| Example ETFs | IVV, VTS, SPY (ASX) | VOO, SPY, IVV (US-listed) |
| Best for | Most Australians | Already have USD / advanced traders |
For most Australians: the ASX ETF route is simpler and cheaper. You buy IVV on the ASX in AUD, no FX conversion needed, and your units are CHESS-sponsored. The US route adds a 0.55% FX fee for the same underlying exposure.
ASX-listed S&P 500 (and US market) ETFs
iShares S&P 500 ETF (ASX)
Tracks: S&P 500 (exact) · Provider: BlackRock / iShares
Most popular S&P 500 ETF on the ASX. Exact S&P 500 tracking. Extremely low MER. Unhedged — USD movements affect AUD returns.
Vanguard US Total Market Shares Index ETF (ASX)
Tracks: CRSP US Total Market · Provider: Vanguard
Broader than S&P 500 — 3,500+ US stocks including small and mid-caps. Same ultra-low MER. Unhedged.
iShares S&P 500 AUD Hedged ETF (ASX)
Tracks: S&P 500 (AUD hedged) · Provider: BlackRock / iShares
Hedges AUD/USD currency risk — your returns reflect US market performance only, not currency movements. Higher MER due to hedging costs.
Comparing S&P 500 ETFs with broader Australian and global options? Our Best Australian ETFs 2026 guide covers VAS, VGS, NDQ, and more — with a full side-by-side comparison of the top ETFs available on the ASX.
Step by step: buying IVV on Stake
Open a free Hello Stake account
Sign up at hellostake.com with referral code jaymem884 — takes 5–15 minutes with your driver's licence or passport. Get a free US stock + $10 credit at sign-up. Stake is AFSL-licensed and CHESS-sponsored for ASX.
Deposit AUD to your Stake ASX wallet
Transfer AUD from your bank via PayID, BPAY, or direct transfer. For ASX ETFs, you deposit into the ASX wallet — no USD conversion required. Most deposits clear within one business day.
Search for IVV in the ASX section
In the Stake app, navigate to the ASX section (not Wall Street). Search 'IVV'. Confirm it shows the ASX-listed version trading in AUD. You can also search VTS or IHVV for alternatives.
Place your buy order at A$3 brokerage
Choose market order (fills at current market price during ASX trading hours) or limit order (your target entry price). A$3 flat brokerage per trade up to A$30,000. Your ETF units settle T+2 and are CHESS-sponsored under your HIN.
Tax on S&P 500 ETFs for Australians
ETF distributions taxed as ordinary income
IVV and VTS distribute income (US dividends and realised gains from within the ETF) typically once or twice per year. These are taxed as ordinary income in Australia at your marginal tax rate. No Australian franking credits apply to US-sourced income.
Capital gains on selling ETF units
When you sell IVV or VTS units for a profit, CGT applies. Holding for more than 12 months qualifies for the 50% CGT discount. The gain is calculated in AUD — so exchange rate changes between purchase and sale dates affect your taxable gain.
Currency risk affects your AUD return
Unhedged ETFs (IVV, VTS) hold USD assets. If the AUD strengthens against the USD, your AUD-denominated return is reduced even if US market prices rise. If the AUD weakens, your return is amplified. IHVV is hedged and removes this effect at a higher cost.
Not tax advice. Consult a registered tax agent for your personal situation. See our US stock tax guide for more detail.
Start investing in the S&P 500 from Australia
Open a free Stake account in 5–15 minutes. Buy IVV on the ASX at A$3 per trade — no FX fee, CHESS-sponsored. Sign up with code jaymem884 for a free US stock + $10 credit.
Open Stake Free — Code jaymem884Not financial advice. Verify current fees and ETF details before investing.
Frequently asked questions
Yes — two routes: (1) ASX-listed ETF in AUD (IVV, VTS) — A$3 brokerage, no FX fee; (2) Direct US-listed ETF (VOO, SPY) via Stake Wall Street — US$3 brokerage + 0.55% FX on deposit. Most Australians use the ASX ETF route for simplicity.
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