03 Jul 2021
To extend on the first question: I understand that it would be good to get accumulating ETFs since my time horizon is long. But wouldn't it be similar if I buy distributing ETFs, receive the dividends, and reinvest less regularly than accumulating ETFs but with a lumpsum so as to reduce fees? I just thought buying distributing ETFs will provide some flexibility in how I wish to use the money.
I would always choose accumulating over distributing ETF because I want the dividends to be immediately and automatically reinvested to enjoy the full effect of compounding. ETF manager can reinvest dividends more cost efficiently than individual investor like us. You don't lose flexibility in using the money because you can liquidate a portion of your ETF to receive cash anytime.
No UT? some UTs have outperformed S&P500 index. But if you want ETF there is so much options to choo...
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