facebookIs distributing ETF better than accumulating ETF? - Seedly

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Anonymous

04 Jun 2020

General Investing

Is distributing ETF better than accumulating ETF?

Which is better? I heard that for accumulating they would reinvest in the fund and the total fund size will rise and NAV. However, when I was comparing between e.g. IUSA Vs VUSA. The performance is the same, wouldnt that mean distributing is better? Am I understanding this differently?

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When you think of investing for longterm , as you should, the aggregate dividends you possibly want to reinvest, so you had to pay again a buying fee. so maybe accumulating is better (if not the total expense ratio is higher than with a distributing one). Should you however be in retirement and have amassed a big ETF portfolio you could see the distributing one as an income source.

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