I have 3 ETF’s currently running for the past 3months - small stakes, I think! (100pm on each)
My aim is to have them all accumulating as I don’t need to take a payment from them - little as they would be!
I didn’t actually realise the 1st ETF I set up was actually a Distribution ETF (Global Clean Energy)… I have a couple of hundred in this and it looks to be performing well - But part of me is wanting to move the balance across to a clean energy accumulating ETF (if one exists on FT)…
I’m not expecting direct advice as such, but maybe a bit of guidance! I’d hate to be just putting small stakes in to this ETF monthly with no long term compound benefit…
I know this is not what you asked for, but as a dividend investor, I would mention what I think are a couple of advantages of receiving dividends rather than them accumulating:
You get to decide both the timing and where to invest the money yourself. For example, the stock the dividend was received from may be rather highly valued at that moment, another one may be under-valued (for example I’ve had some Latin American ETF dividends pay out when the price has been at its highest, I’ve then been able to invest that money into a Japan or Taiwan ETF when the price was low).
With the market downturns we’ve had in months gone by in 2022, I’ve found it very encouraging to receive income even while the stocks themselves have been collapsing in value. It makes me feel something positive is happening rather than potentially being in total dispair.
I’ve got a nice portfolio now where I have received over £900 since April this year, money which I’ve been putting into new and existing stocks to make it compound further. This now includes some monthly dividend payers which are good because they guarantee at least some income every month.
I realise some people probably want to invest and then forget about it, I rather enjoy actively managing my portfolio though which is partly why I like having the dividends as more cash to play with.
It is really good to get a different perspective, so it is very much appreciated.
I totally get where you are coming from, and I think maybe because I have such small stakes in place currently, not seeing a massive kick back is probably why mentally I’m having these thoughts! Really, I should be thinking that I am getting something back (regardless of size!), and therefore once the ETF grows, then the dividends can be used to set up a different ETF to diversify further.
It’s fun this game, isn’t it!
If I may be cheeky and ask without looking elsewhere before asking!..Within the FT app, where on an accumulating EFT would you see, or be notified of the fund stake accumulating? Or does it just happen behind the scenes?
I must say when looking at the clean energy etf from a dividend point of view, it doesn’t screen ‘buy me!’ unlike VHYL (although a completely different theme) …I’m now trying to find something that could potentially payout more than INRG for around £40-£50pm starter investment - If only it was that simple! INRG seems a fair bit more expensive too… 0.65%pa v’s VHYL 0.25%pa