ETF comparison · Updated November 2026
VWRP vs VUAG
Global diversification or a focused, cheaper bet on the US? A side-by-side look at two of the UK’s most popular Vanguard ETFs.
- VWRP fee
- 0.14% a year
- VUAG fee
- 0.07% a year
- VWRP holdings
- ~3,800 companies
- VUAG holdings
- ~500 US companies
Quick answer
VWRP vs VUAG: quick answer
VWRP and VUAG are two of the most popular Vanguard ETFs in the UK. However, they do different jobs. VWRP owns about 3,800 companies across the world, while VUAG owns about 500 large US companies. Therefore, VWRP is a one-fund global portfolio, while VUAG is a focused bet on the US market.
| Feature | VWRP | VUAG |
|---|---|---|
| Full name | Vanguard FTSE All-World UCITS ETF (Acc) | Vanguard S&P 500 UCITS ETF (Acc) |
| Index | FTSE All-World | S&P 500 |
| Companies | About 3,800 | About 500 |
| Countries | Developed and emerging markets | US only |
| Ongoing charge | 0.14% | 0.07% |
| Dividends | Reinvested | Reinvested |
| 5-year return a year to Oct 2026 | 10.61% | 12.27% |
In short, choose VWRP if you want to own the whole world in one fund. Choose VUAG if you want lower fees and are comfortable relying on the US. This guide is general information, not personal advice.
The funds
What each fund holds
VWRP
VWRP tracks the FTSE All-World index. As a result, it holds large and mid-sized companies in more than 45 countries, including the US, Japan, the UK, Europe and emerging markets such as China and India. Even so, the US makes up around two-thirds of the fund, because US companies are the largest in the world.
VUAG
VUAG tracks the S&P 500, which covers about 500 of the largest US companies. Therefore, it has no direct exposure to companies outside the US. However, many S&P 500 companies earn a large share of their revenue overseas, so VUAG is not purely tied to the US economy.
Both funds are accumulating, so they reinvest dividends. If you want cash income instead, the distributing versions are VWRL and VUSA.
Returns
Performance compared
Returns in GBP to 31 October 2026, with 3- and 5-year figures shown as yearly averages. Past performance is not a reliable guide to future returns.
| Period | VUAG | VWRP | Difference |
|---|---|---|---|
| 1 year | 9.69% | 10.12% | VWRP +0.43 pts |
| 3 years, a year | 19.09% | 18.22% | VUAG +0.87 pts |
| 5 years, a year | 12.27% | 10.61% | VUAG +1.66 pts |
Over three and five years, VUAG has done better, because large US technology companies have grown very strongly. Over the most recent year, however, VWRP edged ahead, as other markets caught up. In other words, the lead can change, and past winners do not always keep winning.
Fees
Fees: how much difference does 0.07% make?
| Amount invested | VUAG yearly fee (0.07%) | VWRP yearly fee (0.14%) | Difference |
|---|---|---|---|
| £10,000 | £7 | £14 | £7 |
| £50,000 | £35 | £70 | £35 |
| £100,000 | £70 | £140 | £70 |
VUAG is half the price of VWRP. However, both are cheap compared with most funds. For example, on £50,000 the gap is £35 a year. Therefore, the fee difference is real but small, and it matters less than the choice between global and US-only investing.
In addition, your platform fee may be larger than either fund fee. Our VWRP cost calculator helps you compare total costs.
Overlap
How much do VWRP and VUAG overlap?
A lot. Because about two-thirds of VWRP is in US companies, and its largest holdings are the same US giants that lead the S&P 500, the two funds move closely together. For example, when US technology shares rise or fall sharply, both funds feel it.
As a result, holding both funds does not add much diversification. Instead, it simply increases your weight in the US. For instance, a 50/50 split between VWRP and VUAG would leave roughly 83% of your money in the US. Therefore, if you want more diversification, holding both is not the answer.
Concentration
Concentration risk explained
The S&P 500 has become more concentrated in recent years. A handful of large technology companies now make up a big share of the index. As a result, VUAG’s returns depend heavily on how those few companies perform.
VWRP is also heavily exposed to the same companies, but less so. Moreover, it holds thousands of companies in other countries, which can help if the US has a weak decade. For example, in the 2000s, the S&P 500 delivered poor returns while emerging markets did much better. On the other hand, in the 2010s and early 2020s, the US led strongly.
Currency
Currency risk
Both funds are priced in pounds on the London Stock Exchange, but their underlying holdings are mostly in other currencies. VUAG is almost entirely in US dollars, so a stronger pound reduces its returns for UK investors. VWRP has around two-thirds in dollars and the rest in yen, euros, pounds and other currencies.
Therefore, VWRP has slightly more currency diversification. However, neither fund hedges currency, so both will move with exchange rates.
Which suits you
Which should you choose?
| You want… | Consider | Why |
|---|---|---|
| One fund for your whole portfolio | VWRP | Global diversification across about 3,800 companies |
| The lowest possible fee | VUAG | 0.07% a year |
| A bet on continued US strength | VUAG | Pure US exposure |
| Protection if the US underperforms | VWRP | About a third outside the US |
| A US core plus other regions | VUAG plus other funds | More control, more effort |
For most people who want a simple, hands-off portfolio, VWRP is the more complete choice. However, if you already hold other regions elsewhere, or you are comfortable with a US focus, VUAG is a strong, low-cost option. Our comparison of VWRP vs VUSA covers the distributing S&P 500 version.
Holding both
Can you hold both?
Yes, and some investors do. For example, a portfolio of 70% VWRP and 30% VUAG keeps global diversification while tilting a little more towards the US. However, this adds complexity, because you need to rebalance occasionally. Our guide to rebalancing an ETF portfolio explains how.
On the other hand, if you simply want more US exposure, you could hold VUAG alone. Similarly, if you want less US exposure, you could add an emerging markets or developed ex-US fund alongside VWRP.
Tax
Tax and accounts
Both funds are Irish-domiciled with UK reporting status. Inside a Stocks and Shares ISA or SIPP, there is no tax on gains or reinvested dividends. In a general account, however, you must declare excess reportable income each year for both funds. Our guide on whether VWRP pays dividends explains this in detail.
In addition, US dividends inside both funds suffer 15% US withholding tax at fund level. This is built into the returns and cannot be reclaimed by UK investors. Therefore, it does not change the comparison between the two.
Buying
How to buy VWRP or VUAG
Both funds are available on almost every UK platform, including Vanguard Investor, Trading 212, Hargreaves Lansdown, AJ Bell and eToro. Our guide on how to buy VWRP shows the steps, and the same process works for VUAG.
- Choose a platform Compare platform fees on your pot size.
- Open an ISA or SIPP Use a tax-free account where possible.
- Search for the ticker Type VWRP or VUAG and check it is the London-listed accumulating version.
- Buy and set up regular investing Invest a lump sum or set up monthly purchases.
- Review yearly Check your mix once a year.
Long-term view
The long-term case for each
Supporters of VUAG argue that the US has the world’s most innovative and profitable companies, deep markets and strong shareholder rights. Moreover, US companies earn revenue globally, so owning them already gives indirect international exposure.
Supporters of VWRP, on the other hand, point out that no one can know which country will lead next. Therefore, owning every major market avoids the risk of betting on one. In addition, US shares now look expensive compared with other markets by many measures, which some investors see as a reason to diversify. Both views are reasonable, which is why this is a personal choice.
Mistakes
Common mistakes
- Choosing on last year’s returns. Leadership between the US and the rest of the world can change.
- Assuming VWRP has little US exposure. Around two-thirds of it is in the US.
- Holding both for diversification. It increases US weight rather than adding new markets.
- Switching often. Moving between funds after each period of under-performance usually costs more than it gains.
Risks
Risks of VWRP and VUAG
Both funds invest in shares, so their value can fall as well as rise. VUAG is concentrated in one country and a few large companies, which can increase its swings.
In addition, both funds are exposed to currency moves, especially the US dollar. Finally, your own behaviour is a risk, because selling in a panic locks in losses. For this reason, invest only money you can leave alone for at least five years. Meanwhile, keep an emergency fund in cash, so that you never need to sell at a bad time.
FAQ
VWRP vs VUAG: FAQs
Choosing and using it
Is VWRP or VUAG better?
Neither is better for everyone. VUAG is cheaper and has beaten VWRP over five years, but it holds only about 500 US companies. VWRP owns about 3,800 companies worldwide, so it is more diversified. Your choice depends on how much you want to rely on the US market.
What is the difference between VWRP and VUAG?
VWRP tracks the FTSE All-World index of large and mid-sized companies around the world. VUAG tracks the S&P 500, which covers about 500 large US companies. Both are accumulating Vanguard ETFs listed in London.
Which is cheaper, VWRP or VUAG?
VUAG charges 0.07% a year, while VWRP charges 0.14%. On £10,000, that is £7 against £14 a year.
Does VWRP already include the S&P 500?
Yes, in effect. Around two-thirds of VWRP is invested in US companies, and its biggest holdings are the same large US firms that dominate the S&P 500.
Should I hold both VWRP and VUAG?
You can, but it increases your US weighting rather than adding new companies. Some investors do this deliberately to tilt towards the US. Others prefer to hold just one fund for simplicity.
Practical questions
Do VWRP and VUAG pay dividends?
No. Both are accumulating ETFs, so they reinvest dividends automatically. The distributing versions are VWRL and VUSA.
Are VWRP and VUAG ISA eligible?
Yes. Both can be held in a Stocks and Shares ISA, a SIPP or a general account on most UK platforms.
Has the S&P 500 always beaten the world?
No. The US has led for much of the last 15 years, but there have been long periods, such as the 2000s, when other markets did better.
Which is riskier, VWRP or VUAG?
VUAG is more concentrated, because it holds only US companies, with a large share in a few technology giants. VWRP spreads risk across more countries, although it is still dominated by the US.
Which is better for a beginner?
Many beginners choose VWRP because it is a complete, globally diversified portfolio in one fund. However, VUAG suits investors who are comfortable betting on the US for lower fees.
Keep reading
Related guides
Sources
Sources
- Vanguard – Costs and charges (August 2026)
- S&P Dow Jones Indices – S&P 500
- FTSE Russell – FTSE Global Equity Index Series
This guide is general information, not personal financial advice. Some links may be affiliate links, which never affect our content. vwrp.co.uk is independent and not affiliated with Vanguard or any provider mentioned. Capital is at risk; past performance is not a reliable guide to future returns.