Switching an investment from one fund to another within a Freetrade ISA - any costs or catches?

[greenyubi (Derek)]

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?

Thanks!

[J4ipod94]

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

[rehpot]

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.

[greenyubi (Derek)]

Are dividends from VWRL in an ISA account sent to Freetrade’s GIA? Or do they remain in the ISA?

[rivorson]

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 £20,000 which you are allowed to contribute each year.