Fidelity Worldwide Investment has launched a tracker fund providing low-cost access to the S&P 500.
The Fidelity MoneyBuilder US Index fund has an estimated total expense ratio of 0.30% at launch, and allows investors to track the largest companies in the US market.
Investors are increasingly turning to passive vehicles to gain exposure to North America as it is a highly efficient market that active managers find consistently hard to beat.
The launch bolsters Fidelity’s low-cost MoneyBuilder range which comprises a mix of actively managed and passive funds.
The firm said the rationale behind the launch is that the US alone counts for over a fifth of the global economy and makes up more than half of the world’s stock market. It also has 30 of the globe's 50 largest companies listed there.
The MoneyBuilder US Index fund requires a minimum investment of £500, or £50 per month.