Bestinvest recommends switch from iShares to Vanguard S&P 500 ETF

Bestinvest has awarded a three-star rating to competitor Vanguard's S&P 500 ETF after recommending a switch away from iShares' S&P offering.

Earlier this week Bestinvest had criticised iShares' fee revamp on its S&P 500 offering. The switch in recommendations was made following a review of the Vanguard product's pricing structure, including internal and external costs. Internal costs reflect the costs of being invested in the fund by looking at the systematic underperformance of the fund versus the index it is tracking, while the external cost is the fee for gaining access. Bestinvest noted that US withholding tax makes up a large proportion of the internal costs for S&P 500 ETFs, so the review considered costs net of t...