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⚡ Quick Answer
Malaysians can invest in the S&P 500 in 2026 by buying US-listed ETFs (such as VOO, SPY or IVV) through platforms like Moomoo Malaysia or Webull Malaysia. Both platforms allow direct access to US markets with low commissions. You can start with as little as USD 1 via fractional shares. Currency risk (USD/MYR fluctuations) and a 30% US withholding tax on dividends are the main considerations.
What Is the S&P 500 and Why Should Malaysians Care?
The S&P 500 is a stock market index that tracks the 500 largest publicly listed companies in the United States — including Apple, Microsoft, Nvidia, Amazon and Google. It is widely considered the single best barometer of the overall US stock market and has historically returned an average of ~10% per year over the long term (before inflation).
For Malaysian investors, this matters because:
- Global diversification — the US market represents roughly 60% of global stock market capitalisation. Holding S&P 500 exposure balances your portfolio beyond Bursa Malaysia.
- Currency hedge — holding USD assets partly hedges against ringgit weakness over the long run.
- Quality companies — you gain exposure to world-class technology, healthcare and consumer companies not listed locally.
- Passive income potential — S&P 500 ETFs pay quarterly dividends (though US withholding tax applies — more on this below).
The good news? In 2026, investing in the S&P 500 from Malaysia is easier and cheaper than ever. You no longer need to go through expensive brokers or wire large sums of money abroad.
How Malaysians Can Invest in the S&P 500 (2026)
There are three main ways to get S&P 500 exposure as a Malaysian investor:
Option 1: Buy S&P 500 ETFs on a Malaysian-Friendly US Brokerage
This is the most direct and cost-effective method. Platforms like Moomoo Malaysia and Webull Malaysia are licensed by SC Malaysia and allow you to buy US-listed ETFs directly in USD. You fund your account via DuitNow or FPX, convert to USD, and buy your ETF of choice.
Option 2: Invest via a Robo-Advisor
Robo-advisors like StashAway and MyTHEO allocate a portion of your portfolio into S&P 500 ETFs automatically, based on your risk profile. This is more hands-off but comes with an annual management fee (typically 0.2–0.8% per annum).
Option 3: Buy Local S&P 500 Feeder Funds
Several local unit trust funds — such as those offered through ASNB, Kenanga, and Principal Asset Management — track the S&P 500. These are denominated in ringgit and sold through local platforms. The convenience comes at a cost: management fees tend to be higher (1.5–2.0% per annum), which significantly erodes returns over a decade.
For most Malaysians who want maximum returns with minimal fees, Option 1 (direct ETF purchase) is the recommended route.
The Best S&P 500 ETFs for Malaysian Investors
All four of the major S&P 500 ETFs are accessible to Malaysians through Moomoo and Webull. Here’s how they compare:
| ETF | Ticker | Expense Ratio | Dividend Yield (approx.) | Best For |
|---|---|---|---|---|
| Vanguard S&P 500 ETF | VOO | 0.03% | ~1.3% | Long-term buy and hold |
| SPDR S&P 500 ETF Trust | SPY | 0.09% | ~1.3% | Liquidity (largest ETF globally) |
| iShares Core S&P 500 ETF | IVV | 0.03% | ~1.3% | Alternative to VOO |
| Invesco QQQ Trust (Nasdaq-100) | QQQ | 0.20% | ~0.5% | Tech-heavy growth exposure |
Our pick: VOO or IVV. At a 0.03% expense ratio, both are the cheapest way to own the entire S&P 500. VOO is from Vanguard and widely regarded as the gold standard for passive investing. IVV from iShares is equally good. SPY charges 0.09% — slightly more, though it’s fine for shorter-term investors who value high liquidity.
Note: QQQ tracks the Nasdaq-100, not the S&P 500. It has higher tech concentration and higher historical volatility. It’s not a pure S&P 500 play but is included for comparison.
Moomoo Malaysia: Our Top Pick for S&P 500 Investing
Moomoo Malaysia is one of the most popular platforms for Malaysian retail investors looking to access US markets. It is regulated by the Securities Commission Malaysia (SC) and backed by Futu Holdings, a NASDAQ-listed company.
Key features for S&P 500 investing:
- Fractional shares — invest from as little as USD 1, meaning you don’t need to buy a full share of VOO (~USD 530)
- Low commissions — US stock/ETF trades start at USD 0.99 per order
- Instant funding — fund via MAE, DuitNow or FPX in Malaysian ringgit
- Real-time data and charting — professional-grade tools for free
- Welcome rewards — new users can earn free shares and cash vouchers upon sign-up and first deposit
If you’re new to US stock investing, Moomoo’s clean interface and educational resources make it one of the easier platforms to get started on.
👉 Claim Moomoo’s Welcome Reward Now
Webull Malaysia: A Strong Alternative
Webull Malaysia is another SC-licensed platform offering direct access to US markets. It’s known for its advanced charting, extended trading hours (pre-market and after-market sessions), and a straightforward account opening process.
Where Webull stands out:
- Zero commission on select US trades (check current promo)
- Extended hours trading — trade US ETFs outside standard market hours
- Paper trading — practice buying and selling with virtual money before committing real funds
- Competitive welcome offer — currently offering up to 6% p.a. on uninvested cash for new users
Fees and Currency Risk: What You Need to Know
Investing in the S&P 500 from Malaysia involves costs beyond the ETF’s expense ratio. Here’s what you should budget for:
| Cost | Details |
|---|---|
| Platform commission | ~RM 4–7 per trade (or USD 0.99 on Moomoo) |
| Currency conversion | ~0.5–1.5% spread when converting MYR → USD |
| US dividend withholding tax | 30% deducted at source on all dividends paid to non-US investors |
| ETF expense ratio | 0.03% per annum (VOO/IVV) — negligible |
Currency risk: When you invest in USD-denominated assets, you take on exchange rate risk. If the ringgit strengthens against the dollar, your returns in MYR terms will be lower than the ETF’s USD performance. Over long investment horizons (10–20 years), this risk tends to average out — and historically, the ringgit has weakened against the USD over multi-decade periods.
Dividend withholding tax: The US imposes a flat 30% withholding tax on dividends paid to Malaysian investors (Malaysia has no tax treaty with the US that reduces this rate). If you hold VOO, 30% of every dividend payment is withheld before it reaches your account. For this reason, growth-oriented investors often prefer to hold accumulation-style ETFs or focus on total return rather than dividend income from US markets.
Important: capital gains on S&P 500 ETFs are not taxed in Malaysia. You only pay when you realise gains, and even then, Malaysia does not impose capital gains tax on foreign securities for individuals (as of 2026).
Step-by-Step: How to Buy VOO on Moomoo Malaysia
Here’s a simple walkthrough to make your first S&P 500 investment:
- Download Moomoo Malaysia from the App Store or Google Play and complete identity verification (MyKad required)
- Open a Universal Account — this lets you trade both Malaysian and US markets
- Deposit funds via DuitNow, MAE or FPX transfer — minimum is RM 1
- Convert MYR to USD — within the app, exchange your ringgit to US dollars
- Search for “VOO” or “IVV” in the app’s search bar
- Place an order — choose between a market order (buys at current price) or limit order (buys only at your specified price)
- Confirm and hold — for long-term S&P 500 investing, the strategy is simple: buy regularly and hold for years
Our Recommendation
For most Malaysian investors who want to invest in the S&P 500, the clearest path is: open a Moomoo Malaysia or Webull Malaysia account, fund it monthly in ringgit, convert to USD, and buy VOO or IVV consistently. Keep your investment horizon long (at least 5–10 years), ignore short-term market noise, and let compound growth do its work.
If you prefer a more hands-off approach, a robo-advisor like StashAway will allocate part of your portfolio into S&P 500 ETFs automatically — though at a higher fee than going direct.
Either way, having some S&P 500 exposure as part of a diversified portfolio is one of the most time-tested investment strategies available to retail investors anywhere in the world — including Malaysia.
Frequently Asked Questions
Is it legal for Malaysians to invest in the S&P 500?
Yes. Bank Negara Malaysia allows individuals to invest up to RM 1 million per calendar year in foreign assets without needing prior approval. Both Moomoo Malaysia and Webull Malaysia are regulated by the Securities Commission Malaysia, making them legitimate and legal channels for US stock and ETF investing.
How much do I need to start investing in the S&P 500?
Thanks to fractional shares on Moomoo, you can start with as little as USD 1 (approximately RM 4–5 depending on the exchange rate). That said, a more meaningful starting amount would be RM 100–RM 500 per month to start building a real position over time.
Do I need to pay tax on S&P 500 gains in Malaysia?
Malaysia does not impose capital gains tax on foreign securities for individual investors (as of 2026). However, dividends from US ETFs are subject to a 30% US withholding tax, deducted at source before the payment reaches your account. You do not need to declare this withholding tax in Malaysia separately — it’s handled by the broker.
VOO vs IVV — which should I choose?
Both VOO (Vanguard) and IVV (iShares) track the same index — the S&P 500 — and both charge 0.03% per annum. The difference is negligible for long-term investors. VOO tends to have slightly lower tracking error historically, while IVV is slightly larger and equally liquid. Pick either — what matters more is that you invest consistently, not which of these two you choose.
Can I use my EPF Account 1 to invest in S&P 500 ETFs?
Via EPF i-Invest, you can redirect a portion of your Account 1 into approved unit trust funds — some of which invest in global equities including S&P 500 exposure. However, you cannot directly purchase US ETFs like VOO through EPF i-Invest. For direct ETF purchases, you need a personal brokerage account like Moomoo or Webull funded with your own cash.
Is this better than investing in Bursa Malaysia stocks?
It’s not an either/or question. The S&P 500 gives you exposure to world-class global companies with a strong long-term growth track record. Bursa Malaysia stocks — especially dividend-paying blue chips and REITs — provide local income, ringgit-denominated returns, and a familiar regulatory environment. Most financial planners recommend holding both: local assets for stability and income, global assets (including the S&P 500) for growth.
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