Searching how to invest in S&P 500 usually turns up the same reassuring line: “it’s 500 of the biggest US companies, so it’s automatically diversified.” That’s true in headline count and increasingly misleading in practice — the index has become more concentrated in a handful of giant technology companies than most people realise, which changes what you’re actually buying.
How to invest in the S&P index without a US brokerage account
You don’t need a US address, a US bank account, or a separate US broker. Several ASX-listed ETFs track the S&P 500 directly, priced in Australian dollars, bought through any standard Australian broker exactly like an ordinary share.
- Open or use your existing Australian brokerage account — no separate US account required.
- Decide hedged or unhedged (covered below) before searching for a specific ETF.
- Search the ASX ticker for an S&P 500-tracking ETF, not the US ticker.
- Place a standard buy order, the same as any ASX-listed security.
How do you invest in the S&P 500 and account for currency risk?
Reduces the impact of AUD/USD movements, aiming to reflect the US market’s actual performance more directly.
Leaves currency exposure in place — a falling AUD boosts returns, a rising AUD reduces them, independent of the US market itself.
The concentration most “how can I invest in the S&P 500” guides skip
A small group of mega-cap technology companies has grown to represent a historically large share of the S&P 500’s total value. Buying “the index” today means a meaningfully larger bet on a handful of tech giants than it did a decade ago — worth knowing if you also hold individual positions in those same companies elsewhere.
S&P 500 vs. ASX 200: a rough return comparison
Long-run avg. annual return (indicative)
Long-run avg. annual return (indicative)
Indicative long-run averages only, not a forecast — past performance doesn’t guarantee future results, and both figures vary significantly by the exact period measured. See our ASX 200 guide for the Australian side of this comparison.
If you already hold an ASX 200 fund and a global/international ETF, check whether that international fund already includes heavy S&P 500 exposure before adding a dedicated S&P 500 ETF on top — otherwise you may be unintentionally overweight the same US mega-caps twice.
Frequently Asked Questions
Can Australians invest in the S&P 500 directly?
Yes, through ASX-listed ETFs that track the S&P 500, bought in Australian dollars through any standard broker, without needing a US brokerage account.
How do you invest in the S&P 500 if you want currency protection?
Choose a hedged S&P 500 ETF, which reduces the impact of AUD/USD movements on returns compared to an unhedged version of the same fund.
Is the S&P 500 too concentrated in tech stocks now?
It’s more concentrated in a small number of large technology companies than historically typical, which is worth factoring in if you hold those same companies individually elsewhere too.
How can I invest in the S&P 500 alongside Australian shares?
Most diversified portfolios pair an S&P 500 or global ETF with an ASX 200 fund, balancing US mega-cap exposure with Australian financials and resources exposure.
Trading US markets through an automated platform?
We independently test trading platforms on real accounts before publishing a verdict — not sponsored placements.
See All Reviews Ask Our Analysts