Hi, I have a Freetrade ISA, and want to switch my investment from Vanguard’s distributing version of the FTSE All-World ETF (VWRL) to the equivalent accumulating version (VWRP).
What’s the smoothest way to do this on Freetrade? Will it cost me anything to do this? Will I be out of the market for a period of time?
You will need to sell VWRL then buy VWRP, trades are instant.
You will lose a bit of your investment due to bid/ask spreads but Both ETF’s are quite liquid so you shouldn’t be caught out massively - perhaps 0.1-0.2% of your investment value
It’s worth noting that the spread on accumulating versions of Vanguard’s ETFs tends to be wider. It shouldn’t make a great difference though if you’re investing for the long term.
Any income goes to the account which holds the stock so the dividends would be paid in to the ISA. This does not count against the ÂŁ20,000 which you are allowed to contribute each year.