CSPX vs VOO: Which S&P 500 ETF Should You Buy If You Don’t Live in the US?
Two people in Kuala Lumpur, Singapore or Mumbai can buy the exact same 500 American companies on the same day, with the same money, and end up leaving their families very different amounts.
Nothing about the companies is different. What’s different is the "wrapper" the shares sit in, and the country that wrapper is registered in.
That is the whole CSPX vs VOO question in one sentence.
The short answer: If you don’t live in the US and you aren’t a US citizen or green-card holder, CSPX (the Ireland-registered iShares Core S&P 500 UCITS ETF) is usually the better long-term choice than VOO. It pays half the US tax on dividends (15% instead of 30% for countries like Malaysia and Singapore), it reinvests those dividends for you, and, most important of all, it keeps your money outside the US estate tax, which can take up to 40% of US assets above just US$60,000 when you die. VOO’s only real edge is a lower fee: 0.03% a year against CSPX’s 0.07%. |
In March 2026, The Edge Malaysia ran a feature in which EY tax leaders warned Malaysian investors that they obsess over fund fees while the bigger drain on their returns is tax. This article shows you exactly where that drain is, how big it is in real dollars, and how to plug it in about 15 minutes.
In this article
CSPX and VOO in 60 seconds
Both funds do the same job: they buy all the companies in the S&P 500 index, in the same proportions, so you own a slice of America’s 500 biggest businesses in one purchase.
CSPX | VOO | |
|---|---|---|
Full name | iShares Core S&P 500 UCITS ETF USD (Acc) | Vanguard S&P 500 ETF |
Manager | BlackRock (iShares) | Vanguard |
Registered (domiciled) in | Ireland | United States |
Listed on | London Stock Exchange (in US dollars) | NYSE Arca, New York |
Launched | May 2010 | September 2010 |
Yearly fee | 0.07% | 0.03% |
Dividends | Reinvested automatically (accumulating) | Paid out in cash every quarter |
US tax on dividends | 15% inside the fund | 30% for non-treaty countries |
Exposed to US estate tax? | No | Yes, above US$60,000 |
Fund size | Well over US$100 billion, Europe’s biggest ETF | Over US$1 trillion in 2026 |
So far they look like twins. The difference hides in one row most people skip: domicile.
Same 500 Companies. So Why Does It Matter?
A fund’s domicile is the country where it is legally set up. VOO is an American company. CSPX is an Irish one. That single fact decides two things for you as a non-American:
How much US tax is taken from your dividends
Whether the US government can tax your holding when you die
Think of it like shipping the same box of goods through two different ports. The goods are identical. The customs bill is not.
If you are new to buying US index funds from abroad, my step-by-step guide on how to invest in the S&P 500 if you live outside the United States walks through the basics first.
Difference No. 1: The Dividend Tax Leak (30% vs 15%)
Companies in the S&P 500 pay dividends. In recent years the index has yielded about 1.1% a year, so every US$100,000 you hold throws off roughly US$1,100 of dividends.
The US taxes those dividends before they leave the country. How much it takes depends on who is receiving them.
With VOO
VOO receives the dividends in full, then passes them to you. Because you are a foreigner, the US withholds tax at that point. The default rate is 30%.
A tax treaty between your country and the US can lower that. But Malaysia, Singapore and Hong Kong have no such treaty for dividends, so their investors pay the full 30%. India’s treaty brings it to 25%. The UK, Canada and Australia get 15%.
A common myth: Filling in the W-8BEN form with your broker does NOT cut a Malaysian’s dividend tax to 15%. The form simply proves you aren’t American. Without a treaty, there is no lower rate to claim. You still need to fill it in, though, or you can be taxed even more heavily. |
With CSPX
CSPX is an Irish fund, and Ireland has a tax treaty with the US. So when Apple or Microsoft pay dividends to CSPX, the US withholds only 15%. Ireland then charges nothing extra to investors who don’t live in Ireland.
Same dividends, half the tax, for anyone in a non-treaty country.
What it costs each year
Here is the real yearly cost of each fund once you add the fee and the dividend tax together, using a 1.1% dividend yield.
Where you live | VOO: fee + dividend tax | CSPX: fee + dividend tax | Who wins |
|---|---|---|---|
Malaysia, Singapore, Hong Kong (30%) | 0.03% + 0.33% = 0.36% | 0.07% + 0.165% = 0.235% | CSPX by 0.125% a year |
India (25%) | 0.03% + 0.275% = 0.305% | 0.235% | CSPX by 0.07% a year |
UK, Canada, Australia (15%) | 0.03% + 0.165% = 0.195% | 0.235% | VOO by 0.04% a year |
Look at the bottom row. If your country already has a good treaty with the US, VOO is a touch cheaper on running costs. Hold that thought, because the next difference changes the picture for almost everyone.
What 0.125% a Year Really Costs You
0.125% sounds like nothing. Over decades, it adds up.
Say a Malaysian investor puts US$100,000 into the S&P 500 and leaves it for 25 years, and the index earns 8% a year before costs (a round number for illustration, not a promise).
In VOO, after the fee and the 30% dividend tax: about US$630,000
In CSPX, after the fee and the 15% dividend tax: about US$648,500
That’s roughly US$18,500 more for the exact same 500 companies.
If you invest monthly instead, US$500 a month for 25 years, the gap is smaller but still about US$8,000. (See what that monthly habit can grow into in my article on what US$500 a month in an S&P 500 index fund becomes after 10, 20 and 30 years.)
To be fair and honest: this gap is real but not huge. The EY figures quoted by The Edge compared Vanguard’s US-registered and Irish-registered S&P 500 funds from 2013 to 2024 and found total returns of about 180.7% and 183.9%. Same story: a modest edge to Ireland.
The fee and dividend gap is a nice bonus. It is not the main reason to choose CSPX.
The main reason is what happens when you die.
Difference No. 2: The US Estate Tax (The One That Really Matters)
This is the part most investors outside America have never heard of, and it is the part that can do the most damage.
When a non-American dies owning "US situs assets," the US can charge estate tax on them. US shares count. So do US-registered funds like VOO, even if you bought them through a broker in Kuala Lumpur and never set foot in America.
Here is the shocking part. An American gets a US$15 million exemption in 2026. A non-American gets just US$60,000, a figure that has not risen with inflation. Above that, rates climb from 18% to 40%.
What the bill could look like
Using the official US estate tax rate table and the US$13,000 credit given to non-residents, here is roughly what a family could owe on a VOO holding, before any deductions or treaty relief:
VOO holding at death | Approximate US estate tax | Share of the holding |
|---|---|---|
US$60,000 | US$0 | 0% |
US$100,000 | US$10,800 | 11% |
US$200,000 | US$41,800 | 21% |
US$300,000 | US$74,800 | 25% |
US$500,000 | US$142,800 | 29% |
US$1,000,000 | US$332,800 | 33% |
The same amount held in CSPX: US$0 in US estate tax, because an Irish fund is not a US asset. And Ireland doesn’t charge its own inheritance tax on non-residents who hold Irish funds.
A real case: the Citigroup shares that ended up in a US court
Noordin Charania was born in Uganda and held British citizenship. When Idi Amin expelled Ugandans of Asian descent in 1972, he and his wife rebuilt their lives in Belgium. He never lived in America.
But when he died in January 2002, he owned 250,000 shares of Citigroup, worth about US$11.8 million.
Because Citigroup is an American company, the US treated those shares as US assets and taxed his estate on them. His family argued that, under Belgian law, half the shares belonged to his widow and should be left out. The US Tax Court ruled against them in 2009, with the IRS pursuing more than US$2 million in estate tax and penalties. In June 2010, more than eight years after he died, a US appeals court upheld that all 250,000 shares counted.
His shares were individual stocks, not a fund. But VOO is a US-registered fund, so it is treated the same way. An Irish-registered fund like CSPX is generally not a US asset at all.
It gets worse in practice. Your family’s executor must file a US estate tax return (Form 706-NA) within nine months once US assets top US$60,000. Many brokers freeze the account until the IRS confirms the tax is settled. For a grieving family overseas, that can mean months of paperwork, US lawyers and frozen money.
I go much deeper into this in If You Live Outside America and Own VOO, Your Family Could Lose Up to 40% of It to the US Taxman, including what to do if you already own VOO.
Why this matters more for readers over 40: Estate tax isn’t a "someday" problem. The longer you hold and the more your portfolio grows, the bigger the bill your family could face. A 25-year compounding plan that ends in a 30% estate tax hit has quietly lost a third of its point. |
Difference No. 3: Accumulating vs Distributing
VOO pays you cash dividends every quarter. CSPX does not. It keeps the dividends inside the fund and reinvests them, so the share price grows instead. That’s what "Acc" (accumulating) in its name means.
Why accumulating suits most long-term investors:
Your money compounds automatically. No forgetting to reinvest, no small cash amounts sitting idle.
Fewer small transactions. Reinvesting VOO dividends yourself means extra trades and sometimes extra fees.
Simpler records. No stream of dividend payments to track every quarter.
When distributing is better: if you are retired and want the fund to pay you an income. In that case, look at the distributing Irish versions (see "Good alternatives" below) rather than VOO, so you still keep the 15% tax rate and stay outside US estate tax.
One caution: in some countries, such as the UK, income that is reinvested inside an accumulating fund can still be taxable each year. Malaysia currently exempts foreign-sourced income received by individuals until the end of 2036, subject to conditions, and doesn’t tax individuals on capital gains. Always check your own country’s rules.
Difference No. 4: Fees, Liquidity, Trading Hours and Your Broker
Fees
VOO’s 0.03% is cheaper than CSPX’s 0.07%. On US$100,000, that’s US$30 a year versus US$70. As you saw above, the 15% dividend tax saving more than covers the US$40 difference for anyone in a non-treaty country.
Liquidity
VOO is one of the most traded funds on earth, so the gap between buying and selling prices is tiny. CSPX is smaller but still Europe’s largest ETF, and trading spreads are small for normal-sized orders. For a long-term investor buying a few times a year, this difference barely matters.
Trading hours
The London Stock Exchange is open from about 3pm or 4pm until roughly midnight Malaysia time, depending on the season. New York trades overnight in Asia, from about 9:30pm to 5am. Many Asian investors find London’s hours easier, since you can place orders in the evening rather than in the middle of the night.
Broker access
This is the one practical hurdle. VOO is available on almost every broker that offers US shares. CSPX needs a broker with London Stock Exchange access. Before you decide, log into your broker and search for "CSPX" (make sure the listing is in US dollars on the LSE). If you’re in Malaysia, my guide on how to invest in the S&P 500 from Malaysia explains brokers, fees and taxes step by step.
The Right Choice Depends on Where You Live
Your situation | Usually better | Why |
|---|---|---|
Malaysia, Singapore, Hong Kong, most of Asia and the Middle East | CSPX | 15% vs 30% dividend tax, plus no US estate tax |
India | CSPX | 15% vs 25% dividend tax, no US estate tax, though check India’s rules on overseas investing limits and local tax |
UK, Canada, Australia, Japan | Usually CSPX or a local fund | VOO’s running cost is slightly lower, but estate tax risk remains. These countries have treaty provisions that can reduce it; get local advice |
European Union | CSPX or another UCITS fund | EU rules generally stop retail investors from buying US-listed ETFs like VOO anyway |
US citizen or green-card holder (anywhere) | VOO | Irish funds can create harsh US tax treatment for Americans. Stay with US funds |
That last row matters. If you are a US person, CSPX is the wrong tool for you, wherever you live.
When VOO Still Makes Sense
I don’t want you to leave thinking VOO is a bad fund. It is a superb fund. It just wasn’t built with foreign investors in mind. VOO can still be the right pick if:
You are a US citizen or green-card holder.
Your broker doesn’t offer London-listed ETFs and switching isn’t practical yet. (A US$40,000 VOO holding is far better than no S&P 500 at all. Just keep an eye on that US$60,000 line.)
You live in a strong treaty country and have taken advice on how its estate tax treaty applies to you.
And if you already own VOO, don’t panic-sell. Selling may have tax consequences in your own country, and the right fix depends on your situation. The estate tax article linked above covers the options calmly.
Good Alternatives to CSPX (Same Benefits)
CSPX isn’t the only Irish S&P 500 fund. These share the same two big advantages, the 15% dividend tax and no US estate tax:
VUAA (Vanguard S&P 500 UCITS ETF, accumulating), fee 0.07%
VUSA (Vanguard S&P 500 UCITS ETF, distributing), for investors who want cash income
SPYL (SPDR S&P 500 UCITS ETF, accumulating), fee just 0.03%, the same as VOO, though it is a younger and smaller fund than CSPX
Any of these is a sensible choice. The most important decision is to pick one, keep it simple, and keep buying. (If you’re wondering whether to hold several, read how many index funds you should own. The answer is probably fewer than you think.)
The 30-Second Decision Flowchart
What to Do Tonight: A 15-Minute Checklist
Check your status. Are you a US citizen or green-card holder? If yes, stick with US funds like VOO.
Log into your broker and search "CSPX". Check it shows the London Stock Exchange in US dollars.
If you already own VOO, add up its value. Is it above US$60,000, or will it be within a few years?
Make sure your W-8BEN form is filed with your broker, whichever fund you hold.
Decide your plan for new money: for most non-Americans, new monthly purchases go into CSPX (or VUAA/SPYL).
Write down where your investments are held and give that note to your spouse or executor. A family can’t claim what it doesn’t know exists.
If your holdings are large, spend an hour with a tax adviser in your own country. It is the cheapest insurance you’ll ever buy.
Frequently Asked Questions
Is CSPX better than VOO for non-US investors?
For most people who aren’t US citizens or residents, yes. CSPX pays 15% US tax on dividends instead of up to 30%, reinvests dividends automatically and sits outside the US estate tax. VOO has a lower fee (0.03% vs 0.07%), but for investors in non-treaty countries the tax savings outweigh it.
Do CSPX and VOO hold the same stocks?
Yes. Both track the S&P 500 index and hold the same roughly 500 large US companies in the same proportions. Their performance before tax is almost identical. The differences come from where each fund is registered, Ireland for CSPX and the US for VOO, which changes how you are taxed.
Is CSPX subject to US estate tax?
Generally no. CSPX is an Irish-registered fund, so it is not treated as a US asset for estate tax purposes. VOO is a US fund, so non-Americans holding more than US$60,000 of it, along with other US assets, can face US estate tax of up to 40%.
Does CSPX pay dividends?
No. CSPX is an accumulating fund. It collects dividends from the S&P 500 companies, pays 15% US tax inside the fund, and reinvests the rest, which raises the share price. If you want cash income, look at distributing Irish funds such as VUSA.
Can I buy CSPX in Malaysia or Singapore?
Yes, through a broker that gives access to the London Stock Exchange. Search for the ticker CSPX and check it is the US dollar listing. Not every local broker offers London shares, so confirm before opening an account.
Why is VOO’s fee lower if CSPX is better?
VOO’s 0.03% fee is lower because it is one of the largest funds in the world. But the fee is only one cost. For a Malaysian or Singaporean investor, VOO’s 30% dividend tax costs about 0.33% a year, far more than CSPX’s extra 0.04% fee.
Should I sell my VOO and buy CSPX?
Not automatically. Selling may trigger tax in your own country, and the right move depends on how much you hold and your plans. Many investors simply direct new money into CSPX and review their VOO holding with an adviser, especially if it is near or above US$60,000.
The Bottom Line
CSPX and VOO own the same 500 companies. The difference is the wrapper, and for most people outside America, the Irish wrapper is the better one: less tax on dividends, automatic reinvesting, and, above all, no US estate tax waiting for your family.
You don’t need to get everything perfect. You need a simple, low-cost fund, the right wrapper, and the patience to hold it for decades. History is on your side: the S&P 500 has never lost money over any 20-year period since 1926.
If past losses have made you nervous about starting again, you’re not alone, and it wasn’t all your fault. I wrote a free report on exactly that.
Free 38-page report: Why You Lost Money in the Stock Market (And Why It Wasn’t Your Fault), plus the simple approach that puts the odds back on your side.
About the Author
Stephen Loke has been a student of the market for more than 15 years. He is also an agritourism entrepreneur whose farm has been featured in Bloomberg News and Asahi Shimbun.
This article is general education, not personal financial or tax advice. I’m not a licensed financial adviser. Tax rules change and depend on your own situation, so check with a qualified adviser in your country before acting. All fees, figures and rates were correct to the best of my knowledge as of October 2026.
Sources
Gotrade News, "Vanguard VOO Crosses $1 Trillion in Assets" (2026)
The Edge Malaysia, "Navigating taxation in global investing" (March 2026, EY)
iMoney, "US stocks from Malaysia: the 30% you may not have accounted for" (September 2026)
IRS, Estate tax for nonresidents not citizens of the United States
Paasa, US dividend withholding for Indian residents (25% treaty rate)
Freenance, why EU retail investors can’t buy VOO (PRIIPs/MiFID II)
Taxes for Expats, Form 706-NA and the US$13,000 unified credit
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