facebookI'm in my mid 20s. Should I choose accumulating or distributing ETFs? What are some of these ETFs (I'm not interested in STI ETF)? Which is a good platform to buy them? - Seedly

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Anonymous

03 Jul 2021

General Investing

I'm in my mid 20s. Should I choose accumulating or distributing ETFs? What are some of these ETFs (I'm not interested in STI ETF)? Which is a good platform to buy them?

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.

Discussion (5)

What are your thoughts?

Tan Choong Hwee

Tan Choong Hwee

01 Jul 2021

Level 13·Investor/Trader at Home

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.

I would personally pick accummulating. Helps reinvest and snowball your returns.

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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