Accumulating ETFs?

Z

Zenith63

Registered User
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1,312
Hi guys,

Just wondering how an investor benefits from an accumulating ETF versus a regular distributing one? From what I can tell the price of an accumulating vs. regular is typically the same, matching the underlying index or whatever the fund is based on. Are you sent out or issued additional shares similar to a SCRIP/DRIP scheme?


Thanks!
 
Meant to add an example! Here is a regular iShares Euro 50 ETF uk.ishares.com/en/pc/tools/performance-chart/EUE (I'm not allowed post links here so copy and paste to view) while here is the accumulating version of the same ETF uk.ishares.com/en/pc/tools/performance-chart/SEUA. Prices track each other (and the index) so how does one benefit from buying the accumulating version?
 
I don't have the link off hand but IShares website has a PDF download dealing specifically with accumulated etfs v distributive etfs.The tax issue is a bit up in the air wrt to both in the UK at the moment.
 
I think it's probably this PDF you're thinking of uk.ishares.com/stream/pdf/false/publish/repository/documents/en/downloads/brochure_accumulating_funds_en.pdf but I couldn't figure out from that how exactly the investor sees their increased profit from accumulating the dividends instead of distributing them out.
 
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