How to compare ETFs
Most popular ETFs look alike on the surface. Four things actually separate them:
- What they hold. The index decides your exposure: the S&P 500, the whole world, the Nasdaq-100 or bonds. This matters far more than anything else.
- Fees. The total expense ratio is taken every year. Small differences compound over decades.
- Dividends. Accumulating funds reinvest them; distributing funds pay them out.
- Domicile and listing. Where the fund is based affects withholding tax; where it trades affects currency costs.
If two funds track the same index, choose on fees, dividend policy and what your broker offers. If they track different indexes, you're really choosing a strategy — like global vs US-only.
Frequently asked questions
Why does the calculator use the same return for both ETFs by default?
Nobody knows which fund will do better in future. Giving both the same return makes the comparison fair and shows the one difference you can know for sure: the fee. Switch it off to test your own assumptions for each fund.
Do small fee differences really matter?
Over short periods, barely. Over 20–30 years with regular contributions, a gap of 0.1–0.2% a year can add up to thousands, because the fee is taken from a balance that keeps growing.
Accumulating or distributing — which is better?
Neither is better in general. Accumulating funds reinvest dividends for you, which suits long-term growth and can be more tax-efficient in some countries. Distributing funds pay income, which suits people who want cash flow. Check how your country taxes each.
What does Irish-domiciled vs US-domiciled mean?
It's where the fund is legally based. Irish (UCITS) funds are often preferred by investors outside the US because US dividends are typically taxed at a lower rate inside the fund and there is no US estate-tax exposure. Your own tax residency decides what applies to you.
Are taxes included?
No. Results are before personal taxes, which depend on where you live.