It’s not the price that matters, it’s the tracking performance.
VUAG started in May 2019 at a lower price than VUSA was on the same day.
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Ah I see. That makes sense now. Cheers
Hi
New to free trade… I’m currently investing £100 a month. I’m buying 1 S+P500 etf then individual shares including the usual tech stocks and some more leftfield choices such as green energy etc. My question is should I be buying other ETFs alongside the S+P 500 such as Ftse100 Nasdaq Dow Jones etc to truly diversify or is S+P fine on its own… I’m guessing that a lot of the same companies will come up in the US ETFs anyway… Any advice much appreciated… Thanks
The s&p500 is 100% us focused, if you’re looking for some diversity (some of the tech companies you’re buying might be covered in the s&p500 fund) then you could try adding some of what you’ve mentioned.
It depends on how engaged you want to be, if you want to buy and forget then I’d go for a global tracker like VWRL or EGMW.
If however you wanted to learn more then this thread, while a little in the weeds at times, is as good a thing as I can think of.
Hi
I’m fairly new to investing and have taken particular interest in VUAG.
I understand the difference between both VUSA (dist.) and VUAG (acc.) thanks to the posts above. So thanks for sharing this info.
My only questions are:
-
When does Vanguard automatically reinvest dividends on the VUAG? Is this done quarterly/ annually/ etc? Does anyone have historic dates this was carried out or point me in the right direction in terms of documentation?
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It was touched on above that “reinvestment will be reflected in the share price (NAV)” and won’t take place in form of additional shares (I guess this makes sense if ETFs don’t currently support partial shares), but how does this work when buying/selling at the going rate?
Best,
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I was just looking at this ETF and the Stats section shows a dividend yield of 2.03%.
This is an accumulating ETF, so I think the div yield really should show as 0%?
edit. Might be a more general problem - VWRP (FTSE All World) Acc also shows a div yield of 2.24%
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My assumption is that its likely because that is the dividend yield, it is the same as VUSA. but the dividends are reinvested. So if that’s the case then its correct, but confusing. Especially when the info description describes ETFs as passing dividend payments to investors.
It does look like it shows the dividend yield for all accumulating ETFs on the platform
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I think you are correct
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Your assumption is correct because those ETF’s do have a cash distribution … which you don’t get directly.
This is a significant point for Income and CGT purposes. If you are outside an ISA you need to watch out for it. The whole of the “gain or loss” is not a capital gain. If you don’t watch out you may end up paying double CGT.
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Yeah I do remember something about CGT on accumulated dividend ETFs.
Also though, i think @TradeRunner has pointed out an issue. Because the app does make it appear as if you will received the dividend back to yourself, rather than reinvested inside the fund.
So for some investors this might appear confusing
Yield correct. But yes. I agree that ‘educational info’ wording is wrong. We will page the comms team.
The tax issue is really interesting.
I just checked on HL and they specify N/A for the dividend yield.
AJ Bell don’t show a dividend figure either (just a dash).
You don’t get a notification for a dividend on a accumulating etf.
Makes it really tricky to calculate the tax if outside of a isa or sipp.
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Totally agree. But what HL, and btw most fund managers do, in the annual tax report, which is what should used for Tax computations, is separate out this information.
(I’ve forgotten the wording used, It is not dividend or income but some like ‘x y z’ distributions.)
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I’m fairly sure that accumulating ETF used to show n/a for dividend yield. Maybe there was a decision made when they pushed out the inapp stat or maybe an over sight. @bitflip has flagged so hopefully will get an answer for the product manager? @JamesBell 
Hi all,
Is this fund just as good as the HSBC S&P 500 one (HSPX)?
Or is one better than the other?
HSPX have higher fee than VUAG. 0.09% VS 0.07%.
HSPX is only available for standard/plus members.
HSPX distribute the dividend income to you as cash while VUAG reinvest dividend income automatically.
VUSA is same as HSPX in term of dividend distribution, but it is also available for free members and the fee is also 0.07% if you are interested in cash distribution.
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Thank you
Does this stock pay dividends? As ok the information it says that it reinvest them into the fund but there is no dividend yield shown??
So I’m confused
It’s accumulating, there is no dividend yield as there is no dividend paid.
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What do you mean so the “dividend” amount is just added into the fund?
If so when do they do this?