ETF (acc)

[Bob87]

Hi Folks!

I’ve been on Freetrade for around a year now, buying shares in UK companies, and reinvesting the dividends.

I’m looking to buy some ETFs, I’m just wondering how an accumulator ETF would work on Freetrade. For example if I invested in a S&P500 and I got a dividends of £50, which isn’t enough to buy a share, currently at around £85. What happens to the £50 dividend?

Does it remain in the ETF unspent? I’ve seen reviews on YouTube about Freetrade, some say they do fractional shares, which I’ve never seen. Do the do fractional shares, in ETFs only?

Any help appreciated!

[Panik (P)]

The fund value just increases when the dividend is paid (i.e.you dont get a cash payment)

You cant buy fractional shares in UK listed ETFs or any UK holdings currently on FT. Fractionals only allowed in GIA or SIPP on US securities (not sure about european stocks as I dont own any)

[Bob1 (Bob)]

Accumulator ETFs dont pay dividends. They reinvest them and its reflected in share price.

A distrusting ETF would pay dividends and you would need to invest that yourself.

[Bob87]

Thanks Panik. So if I invest in VUAG, for example, will I get any notifications to tell me the shares have went up by… £5?

I think I will just invest in distribution ETFs so I can see what is going on a bit better!

Thanks for reply, much appreciated!

[Bob87]

Thanks Bob. Much appreciated mate!

[Kiava]

Nope VUAG you won’t get any notifications but you can just look at your gain loss for the juicy bits.

I have VUAG but you will want VUSA

[weenie]

@Bob1

A distrusting ETF

I think you meant a ‘distributing ETF’

[Bob1 (Bob)]

I apparently have autocorrect blindness.

[Kiava]

It’s funny as I was laughing yesterday that I think weenie also tried to use chatGTB to try understand what I was trying to say in the treasuires topic lol

[Kiava]

Check that Bob for ultimate autocuecumber ness

[Bob1 (Bob)]

We all have our moments…especially of an evening