ETF comparison · Updated November 2026
VWRP vs VUSA: World or S&P 500?
VWRP holds the whole world, while VUSA holds only the 500 largest US companies. We compare returns, fees, risk and dividends, and explain which suits UK investors.
- VWRP charge
- 0.14% global
- VUSA charge
- 0.07% US only
- VWRP 5-year
- 10.61% a year, in pounds
- VUSA 5-year
- 12.27% a year, in pounds
Quick answer
VWRP vs VUSA: the short answer
This is not a choice between two similar funds. Instead, it is a choice between the whole world and the US alone. VUSA tracks the S&P 500, the 500 largest US companies. VWRP tracks the FTSE All-World, which holds thousands of companies in developed and emerging markets.
In short, VUSA has delivered more and costs less, because US shares have led the world for years. However, VWRP gives you a far wider spread of countries and companies. For a single, long-term holding, many investors prefer VWRP precisely because nobody knows which market will lead next.
Side by side
VWRP vs VUSA compared
To begin, the table sets out the key facts for both Vanguard ETFs.
| Feature | VWRP | VUSA |
|---|---|---|
| Full name | Vanguard FTSE All-World UCITS ETF (USD) Acc | Vanguard S&P 500 UCITS ETF (USD) Dist |
| ISIN | IE00BK5BQT80 | IE00B3XXRP09 |
| Index | FTSE All-World | S&P 500 |
| Markets | Developed and emerging, worldwide | US only |
| Ongoing charge | 0.14% | 0.07% |
| Holdings | About 3,800 | 504 |
| Fund size | About £46bn (this share class) | About US$89bn (whole fund) |
| Dividends | Accumulating (reinvested) | Paid out quarterly |
| Accumulating version | VWRP itself | VUAG |
| Income version | VWRL | VUSA itself |
| Domicile | Ireland | Ireland |
Sources: Vanguard and justETF, October 2026. Fund sizes are approximate.
What you own
What does each fund actually hold?
The biggest difference is geographic. VUSA holds only US companies, while VWRP holds companies from around 50 countries. Even so, the overlap is large, because the US makes up about 60% of the global market.
| Feature | VWRP | VUSA |
|---|---|---|
| US companies | About 60% | 100% |
| Japan, UK, Europe | About 25% combined | None |
| Emerging markets | Roughly a tenth | None |
| Largest holdings | Nvidia, Apple, Microsoft, Amazon | Nvidia, Apple, Microsoft, Amazon |
| Technology weight | About a third | Higher, roughly a third or more |
In other words, owning VWRP already gives you most of the S&P 500. VUSA simply removes everything outside the US. That makes VUSA more concentrated: its largest ten holdings make up a far bigger share of the fund. For a full guide to US trackers, see our best S&P 500 ETFs in the UK.
Performance
Performance: the US has led
Over the last five years, VUSA has clearly beaten VWRP. The main reason is the extraordinary run of large US technology companies. However, the gap has narrowed recently, and VWRP was slightly ahead over the past year.
Total returns in pounds from AJ Bell, to 31 October 2026. Three- and five-year figures are annualised. Past performance is not a reliable guide to future returns.
| Year | VWRP | VUSA | Ahead |
|---|---|---|---|
| 2020 | 12.27% | 13.67% | VUSA |
| 2021 | 20.00% | 30.97% | VUSA |
| 2022 | -8.41% | -9.00% | VWRP |
| 2023 | 15.64% | 19.80% | VUSA |
| 2024 | 19.60% | 27.32% | VUSA |
| 2025 | 13.94% | 9.39% | VWRP |
For example, £10,000 invested at the start of 2020 would have grown to about £22,600 in VUSA and £19,400 in VWRP by the end of 2025. Still, history shows that leadership changes. In the 2000s, for instance, US shares lagged behind many other markets for a whole decade. As a result, past outperformance is not a reliable reason to concentrate in one country.
Fees
Fees: VUSA is half the price
VUSA charges just 0.07% a year, half of VWRP’s 0.14%. On a typical portfolio, the difference is modest but real.
| Investment | VWRP at 0.14% | VUSA at 0.07% | Yearly saving with VUSA |
|---|---|---|---|
| £10,000 | £14 | £7 | £7 |
| £50,000 | £70 | £35 | £35 |
| £100,000 | £140 | £70 | £70 |
That said, a fee gap of 0.07 percentage points is small compared with the difference in what the funds hold. In practice, the choice between the whole world and the US alone will affect your returns far more than the charge. Our VWRP cost calculator shows how fees add up over time.
Risk
Risk and diversification
Diversification is VWRP’s main advantage. Because it spreads money across many countries, a slump in any one market has a smaller effect.
- Country risk: VUSA depends entirely on the US economy, US politics and US company profits.
- Valuation risk: US shares trade at higher prices relative to earnings than most other markets, which some analysts see as a risk to future returns.
- Concentration risk: a few technology giants carry large weights in both funds, but even more so in VUSA.
- Currency risk: VUSA is fully exposed to the dollar, while VWRP spreads currency risk more widely.
On the other hand, VWRP still has around 60% in the US, so it is far from immune to a US downturn. In 2022, for example, both funds fell by a similar amount. Therefore, VWRP reduces single-country risk but does not remove market risk.
Dividends
Dividends and tax
VUSA pays its dividends out to you every quarter, while VWRP reinvests them inside the fund. If you prefer reinvestment with VUSA’s US exposure, choose VUAG, its accumulating twin.
| Situation | What happens |
|---|---|
| Inside an ISA or SIPP | No UK tax on dividends or gains, for either fund |
| Outside, VUSA dividends | Taxed above the £500 allowance at 10.75%, 35.75% or 39.35% |
| Outside, VWRP | Reinvested dividends are still taxable as income |
| Selling at a gain | Capital Gains Tax at 18% or 24% above the £3,000 allowance |
For most investors, the simplest answer is to hold either fund inside a Stocks and Shares ISA. Our guide to the best Stocks and Shares ISAs compares the main providers.
Portfolios
Example portfolios using VWRP and VUSA
You do not have to pick only one. Instead, some investors combine the two funds to set their own US weight.
| Portfolio | Mix | Approximate US weight | Suits |
|---|---|---|---|
| Global core | 100% VWRP | About 60% | Investors who want the market weight |
| US tilt | 80% VWRP, 20% VUSA | About 68% | Investors who expect the US to keep leading |
| Strong US tilt | 50% VWRP, 50% VUSA | About 80% | Investors comfortable with high US risk |
| US only | 100% VUSA | 100% | Investors who deliberately want only the US |
As the table shows, every step towards VUSA raises your dependence on one country. Therefore, decide on a mix you can stick with, then rebalance once a year if it drifts. Above all, avoid switching after a strong or weak year, because chasing recent winners tends to hurt returns.
Which to choose
Which should you choose?
| If you… | Choose | Why |
|---|---|---|
| Want one simple fund for life | VWRP | Global spread with no rebalancing |
| Want the lowest possible fee | VUSA or VUAG | 0.07% a year |
| Believe the US will keep leading | VUSA or VUAG | Pure US exposure |
| Worry about relying on one country | VWRP | Around 50 countries |
| Want regular income | VUSA or VWRL | Both pay dividends |
To sum up, VWRP is the better core holding for most long-term investors, because it does not bet on any one country. VUSA is a strong, very cheap fund for investors who deliberately want US exposure, often alongside other funds. Some investors combine them, for example 80% VWRP and 20% VUSA, to tilt towards the US while keeping a global base.
How to buy
How to buy VWRP or VUSA
- Open an ISA or SIPP. This shelters your gains and dividends from UK tax.
- Choose a platform. Both funds are available on Vanguard Investor and most other UK platforms.
- Search for the ticker. VWRP or VUSA (or VUAG) on the London Stock Exchange, in pounds.
- Invest regularly. A monthly investment smooths out the ups and downs of the market.
Our guide to the best ETF platforms in the UK compares costs, and our guide on how much to invest per month helps you set a target.
FAQ
VWRP vs VUSA: FAQs
Choosing between them
Is VWRP or VUSA better?
It depends on what you want. VUSA is cheaper at 0.07% and has done better over the last five years, but it only holds US companies. VWRP costs 0.14% and spreads your money across developed and emerging markets worldwide, which lowers the risk of relying on one country.
Does VWRP already include the S&P 500?
Largely, yes. Around 60% of VWRP is invested in US companies, and its biggest holdings are the same giants that lead the S&P 500. So if you own VWRP, you already have heavy US exposure.
Why has VUSA beaten VWRP?
Over the past decade, US shares, especially large technology companies, have grown faster than most other markets. As a result, a US-only fund has outperformed a global one. That trend may or may not continue.
What is the difference between VUSA and VUAG?
They are two share classes of the same Vanguard S&P 500 fund. VUSA pays dividends out every quarter, while VUAG reinvests them. Both charge 0.07%.
Is VUSA riskier than VWRP?
Yes, in one important way. VUSA depends entirely on one country, so a long US slump would hit it harder. VWRP spreads its money across many countries, although it still has a large US weight.
Practical questions
Can I hold both VWRP and VUSA?
You can, but VWRP already holds most of the S&P 500. Adding VUSA simply raises your US weight. Some investors do this deliberately, but it reduces diversification.
How are VUSA dividends taxed?
Inside an ISA or SIPP, they are tax-free. Outside, dividends above the £500 allowance are taxed at 10.75%, 35.75% or 39.35% depending on your tax band. VWRP reinvests dividends, but the same tax applies to them outside a wrapper.
What about currency risk?
Both funds trade in pounds, but their holdings are priced in foreign currencies. VUSA is fully exposed to the US dollar, while VWRP spreads its currency risk across the dollar, euro, yen and others.
Which is better for a beginner?
For a simple, one-fund portfolio, many beginners choose VWRP because it covers the whole world and needs no rebalancing. VUSA suits investors who deliberately want US exposure, often alongside other funds.
Are both available in a Stocks and Shares ISA?
Yes. Both trade on the London Stock Exchange and are available in ISAs and SIPPs on most UK platforms, including Vanguard Investor.
Keep reading
Related guides
Sources
Sources
- AJ Bell – VWRP performance (to 31 October 2026)
- AJ Bell – VUSA performance (to 31 October 2026)
- Vanguard – S&P 500 UCITS ETF fund data
- PortfoliosLab – VWRP vs VUAG comparison
- Trustnet – Vanguard cuts VWRP fee to 0.14%
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.