Vanguard S&P500 ETFs VOO vs VUSA performance year to date

GazzaBloom

Quite a difference in performance between the UK & US Vanguard ETFs tracking the S&P500, why such a difference with the UK fund not having declined so much? Is this all down to exchange rates or are there other factors causing such a current disparity in YTD performance?

VOO (US):



VUSA (UK):

EdSwippet

Firstly, for some reason you're viewing VOO in MXN, not USD! Fix that, and you will see a current -14.07% YTD for VOO. The difference between that and VUSA will be down to currency. GBP is down -7.14% over the same period. Add that to VUSA's -6.54% and you pretty much get the same drop as VOO.

YTD numbers:
VOO (in USD!): https://www.google.com/finance/quote/VOO:NYSEARCA?hl=en&window=YTD
GBP-USD: https://www.google.com/finance/quote/GBP-USD?window=YTD

GazzaBloom

EdSwippet said:

Firstly, for some reason you're viewing VOO in MXN, not USD! Fix that, and you will see a current -14.07% YTD for VOO. The difference between that and VUSA will be down to currency. GBP is down -7.14% over the same period. Add that to VUSA's -6.54% and you pretty much get the same drop as VOO.

YTD numbers:
VOO (in USD!): https://www.google.com/finance/quote/VOO:NYSEARCA?hl=en&window=YTD
GBP-USD: https://www.google.com/finance/quote/GBP-USD?window=YTD

Thanks, not sure why it defaults to MXN in Google! I guessed the difference was fx, I didn't realise the Pound had dropped against the Dollar so much. That's quite a boost for UK investors in US equities so far this year. 

EdSwippet

GazzaBloom said:
... I didn't realise the Pound had dropped against the Dollar so much. That's quite a boost for UK investors in US equities so far this year. 

Not so much a boost as a cushion.

The pain simply shows up in other ways. Inflation, higher price for things valued in USD (oil; already visible at forecourt pumps), and so on. Double benefit for the government, though. Inflate away its borrowing, debauch GBP, and then charge investors capital gains tax on the (largely illusory) profits from non-GBP investments.

masonic

Another reason not to be sitting on the sidelines in cash.