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VOO vs SPYL: The Best S&P 500 ETF for Malaysian Investors

VOO vs SPYL: The Best S&P 500 ETF for Malaysian Investors

Corporate Sarah

Comparing VOO and SPYL for Malaysian investors to maximize returns.

Investing

Key Takeaways

1

SPYL is the superior S&P 500 ETF for Malaysian investors due to significant tax advantages.

2

It only loses 15% of dividends to US tax and protects assets from the 40% US Estate Tax, unlike VOO.

3

SPYL also automatically reinvests dividends (Accumulating), accelerating compounding for long-term returns.

For investors, building wealth begins with understanding the right instruments. One of the most popular ways is through Exchange Traded Products (ETP), more commonly known as ETFs.

What is an ETF and Why Invest in Them?

An ETF is an investment fund traded on the stock exchange just like a regular stock. When you buy one unit of an ETF, you essentially own a small slice of hundreds of giant companies simultaneously. Investors choose ETFs because they offer instant diversification, low management costs, and stable long-term growth potential without the need to manually pick individual stocks.

The two primary choices on FSMOne Malaysia for tracking the S&P 500 index are VOO and SPYL.

Comparison: VOO vs. SPYL on FSMOne

Features

VOO (Vanguard S&P 500)

SPYL (SPDR S&P 500 UCITS)

Market

United States (NYSE)

United Kingdom (LSE)

Dividend Tax (US)

30%

15%

Capital Gains Tax (MY)

0% (None)

0% (None)

Dividend Tax (MY)

0% (2% if above RM100k)

0% (2% if above RM100k)

Dividend Management

Cash (Distributing)

Reinvested (Accumulating)

US Estate Tax

Exposed (Up to 40%)

None

Table 1: Comparison of Key Features and Tax Efficiency for VOO and SPYL on FSMOne.

The main difference lies in tax efficiency and asset protection. While Malaysian investors are not taxed locally on capital gains or foreign dividends, US taxes still apply. VOO results in losing 30% of your dividends to the US government, whereas SPYL only loses 15%. Most importantly, SPYL protects you from the US Estate Tax (a tax of up to 40% on assets left to heirs if your US investment value exceeds USD 60,000 at the time of passing). SPYL also automatically reinvests dividends, which accelerates the power of compounding.

Investment Reality: RM500 (January 2025 to January 2026)

This simulation uses actual market data where the S&P 500 rose by 16.5% in 2025, while the Ringgit strengthened from RM4.40 to RM4.07.

Details

VOO (Distributing)

SPYL (Accumulating)

Initial Capital (Jan 2025)

RM 500.00

RM 500.00

Exchange Rate (Jan 2025)

RM 4.40 / USD

RM 4.40 / USD

Capital in USD

$113.64

$113.64

Stock Price Increase (16.5%)

+ $18.75

+ $18.75

Net Dividend (After Tax)

+ $0.95 (30% Deducted)

+ $1.16 (15% Deducted)

Final Value in USD (Jan 2026)

$133.34

$133.55

Exchange Rate (Jan 2026)

RM 4.07 / USD

RM 4.07 / USD

Final Value in MYR

RM 542.69

RM 543.55

Net Returns (MYR)

+ 8.54%

+ 8.71%

Table 2: Investment Simulation of RM500 Initial Capital (Jan 2025 to Jan 2026).

Conclusion: Why SPYL is the Answer

Even though the strengthening Ringgit reduced the returns in MYR terms, SPYL still delivered a higher yield due to dividend tax efficiency. For long-term investors, SPYL is the better choice to maximize net returns and avoid the risks of US Estate Tax (note: not an investment advice).

Getting Started: Set Up an RSP in 5 Minutes

Use the Regular Savings Plan (RSP) on FSMOne to invest automatically:

  1. Deposit Funds: Deposit a minimum of RM100 into your FSMOne account.    
  2. Search for SPYL: Search for "SPYL" and ensure you select the LSE (London Stock Exchange) listing.    
  3. Activate RSP: Click the "RSP" button to set a fixed monthly investment.    
  4. Set the Amount: Enter your amount (min. RM100) and choose a deduction date (8th or 20th).    

Confirm: Complete the transaction. You are now investing with 0% processing fees through the FSMOne RSP campaign.

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