How to invest in the S&P 500 on Trade Republic

Pick an ETF tracking the S&P 500

You can’t buy the S&P 500 index directly. However, you can invest in it through an instrument that replicates its performance, like an exchange-traded fund (ETF).

The table below shows five of the largest S&P 500 ETFs available to European investors (to see all of them, some of which may not be on Trade Republic, go to justETF.com). We believe this list is enough for you to choose from:

We would recommend one of the first two (iShares or Vanguard) for these reasons:

1. Both have a total expense ratio (TER) of 0.07%, which is very low. To give you an idea, €100 invested in either ETF only costs you 7 cents a year;
2. The replication method is “physical”, meaning that the ETF holds the actual shares in the index. A “synthetic” ETF uses derivatives, usually a swap with a bank, which adds counterparty risk (although synthetic S&P 500 ETFs can have a small tax advantage on US dividends);
3. These two are the largest S&P 500 ETFs by assets under management (AUM), which makes them very unlikely to be closed down.

If you prefer the Vanguard ETF but don’t want to receive dividends, the accumulating version (VUAA) has the same TER.

If you want to explore more S&P 500 ETFs, type “S&P 500” in the Trade Republic search bar:

Place a “buy order”

Let’s say you have decided to invest in the iShares Core S&P 500 UCITS ETF (SXR8). The process is the same for the other ETFs.

• Search for the ETF using its ticker or name:

• Click “Review order”

Fill in the order details: the order type (market order by default) and the number of shares you want to buy:

• Click “Buy now”: all the details appear (including the costs), and you are ready to confirm the order:

And that’s it! You are invested in the S&P 500.

Or invest automatically with a savings plan

Instead of placing one-off orders, you can set up a savings plan on Trade Republic: you choose the ETF, the amount (from €1) and the frequency, and Trade Republic invests automatically. Savings plan executions are free, and since you invest an amount rather than a number of shares, you buy fractions of the ETF. This is the cheapest way to invest regularly in the S&P 500 on Trade Republic.

S&P 500 ETF fees on Trade Republic

Buying an S&P 500 ETF on Trade Republic is cheap. These are the costs to keep in mind:

• External fee: €1 per one-off order;
• Savings plans: free;
• Fund fee (TER): charged by the ETF provider inside the fund, 0.07% a year for SXR8.

You can confirm the €1 fee in our order below:

What about payment for order flow?

For years, Trade Republic received payments from the trading venues it forwarded its clients’ orders to, known as payment for order flow (PFOF). This practice creates a potential conflict of interest, since the broker is paid by the venue rather than choosing it only on price.

The EU ban on PFOF, part of the MiFIR review, has applied since June 30, 2026. Trade Republic now earns most of its revenue from interest on client cash (it has a full banking licence), securities lending and its external fees. Even so, it’s good practice to check the price shown before confirming an order, especially outside the main US trading hours.

What to look for in any ETF?

Not all ETFs are created equal. Different asset managers offer different ETFs tracking the same index (like the S&P 500). The main differences are:

1. Fees (TER)

Asset managers like BlackRock (iShares) or Vanguard don’t run ETFs for free. Throughout the year, a small fee is deducted from the fund’s assets. A lower fee means lower costs and, therefore, higher returns for you. This fee is usually shown as the ongoing charges figure (OCF) or total expense ratio (TER).

Using the iShares Core S&P 500 UCITS ETF (SXR8) as an example, you can find its TER of 0.07% in the factsheet:

2. Replication method

An ETF can replicate its index in two ways:

• Physical replication: the ETF buys the shares of the companies in the index;
• Synthetic replication: the ETF uses a swap agreement with a bank to receive the return of the index.

The companies in the S&P 500 are very liquid, so physical replication is simple and avoids the counterparty risk of derivatives. Using the same ETF, you can see its methodology is “physical replication”:

3. Use of income

ETFs also differ in what they do with the dividends paid by the companies in the index:

• Accumulating ETFs reinvest the dividends inside the fund, which is reflected in a higher price than an identical distributing ETF. In some countries, this is tax-efficient because you only pay tax when you sell, although others (such as Germany) tax part of the accumulated income every year;
• Distributing ETFs pay the dividends to you regularly (usually quarterly), directly into your brokerage account, and you normally have to declare them for tax.

Which one is better? There is no single answer. If you are investing for the next 20 years, an accumulating ETF may suit you better. If you want a regular income, a distributing ETF is the natural choice.

SXR8 is “accumulating”:

4. Size

The fund size should also be taken into account. Smaller funds generally run a higher risk of being closed down than larger ones. If that happens, the fund sells its holdings, settles its obligations and pays the remainder to investors, which can trigger a taxable event for you.

SXR8 is the largest ETF in Europe, with more than €130 billion in assets according to justETF (July 2026). You can check the fund’s net assets in its factsheet:

5. Currency hedging

Some ETFs use derivatives to protect against currency movements, in this case between the US dollar and the euro. Hedging comes at an additional cost and reduces short-term swings, but it can also reduce long-term returns if the dollar strengthens. The five ETFs above are all “unhedged”, which is the most common choice for long-term investors.

Bottom line

To sum it up, here’s what you need to do:

1. Pick an ETF tracking the S&P 500: compare fees, replication, use of income and size;
2. Open an account and deposit money into Trade Republic: go through the account opening process and fund your account;
3. Buy the ETF: place a one-off order (€1 external fee) or set up a free savings plan to invest automatically.

We hope this guide answered your questions. Make sure to do your own research to find the best investing strategy for you.

You might also want to check whether Trade Republic is the platform that best suits your needs, since there are many other options. For example, you can invest in the S&P 500 on eToro, on DEGIRO or on Interactive Brokers.