Vanguard S&P 500 UCITS ETF USD (Acc.) - VUAG

Stock Discussions
62

When the fund receives a dividend it buys more of its underlying stocks.

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63

I see so just so Iā€™m understanding this they collect the dividends from the stocks they hold and then use that money to give you more stock of the VUAG say for example?

64

No. They use the money to buy more stock. So after that you own more of the underlying stocks per unit of VUAG.

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65

Hi All,

I wonder if anyone can help. After watching a recent Mark Tilbury video online, Iā€™ve become really interested in investing in the ā€œ Vanguard S&P 500 UCITS ETF USD (Acc.) VUAG] ā€œ stock and would like to ask a few questions if anyone can be kind enough to answer.

This is my first time investing and he talks about this being a good stock to invest in. I wondered if anyone was able to confirm if this screen shot is the actual stock on Freetrade. I have highlighted the option I believe it is

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I would also like to ask how, if it doesnā€™t automatically do this for me. Do I automatically reinvest the dividends ?

Thank you for your support

66

VUAG (Vanguard S&P 500 UCITS ETF) is an Accumulating ETF which means Vanguard (the ETF asset manager) automatically reinvests the dividends from the underlying stocks in the index, increasing the ETFā€™s shareholdings.

VUSA is the Distributing version of the ETF if you prefer to receive the dividends as cash income.

Thereā€™s more information about Accumulating vs Distributing ETFs here:

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67

Yes it is. The Ā£VUAG in the screenshot indicates the stock ticker VUAG and is traded in GBP on the London Stock Exchange.

(The S&P 500 is an index of the top 500 stocks by market capitalisation in the United States, and therefore the ETF holdings are in USD. The GBP price is affected by the USD-GBP exchange rate.)

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68

Thank you very much mate, that really helped :+1:t4:

69

Sorry to hijack but how does fund size affect these etfs? VUSA is considerably larger

70

This article sums it up pretty well:

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71

Hi everyone. New here and Iā€™m wondering what happens when the dividens get paid for my VUAG holding. What how does the automatic reinvestment work?

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72

You wonā€™t get a payment and wonā€™t see anything. The fund just buys more assets with the dividend and increases your ownership per part of the ETF.

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73

Almost bang on where it was last year :slight_smile:

74

Can anyone please help me understand why this ETF looks down nearly 2% in the past month when the actual S&P 500 is up 7% + over the same period ?? Assumed with the ETF replicating performance the movements would be the same or is it not that simple?

75

Currency movement. See How do currency moves affect stocks? šŸ’µ - #37 by bitflip

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77

Thanks all for the discussions in here, really useful and it looks like Ā£VUAG is the first ETF for me.

Can anyone please clarify two things?

  1. For the fund being currency hedged or not, if Iā€™m buying this as a UK resident, in GBP, thereā€™s no reason I would want to find an identical ETF just with currency hedged, right?

  2. Is there a withholding tax from the US on this? Some places say no because the fund is domiciled in Ireland, but other things Iā€™ve read say thereā€™s an agreement between the US and the UK making such a tax 15% (instead of the usual 30% for countries without such an agreement).

Thanks!

78

Wondering if people would rather have Ā£spxp than vuag?. Vuag has 0.07 exp and Ā£spxp has 0.05ā€¦

79

For an EFT since its not an actual company but a collective of companies do you all just keep buying in as having to actully find all the companies in this eft would be time consuming?

I would assume if there was a drop in price because a big company went bust some other company next in line would take itā€™s place in the snp500, so with that in mind, should we expect this will always rise just like the all world over time?

I know there will be fluctuations like every stocks etc but for the long term we could assume it should rise?

Another question is how do you all know the health of this eft and or if its worth buying at a set time?

80

Hi , I use a few etfs for simplicity and a bit of stability . You can find all the information on performance etc at vanguard , black rock or whoever you decide to go with . For me I think index trackers are a relatively safe bet yes you get the fluctuations but a quick look at its chart can be a good indication as when to buy and of course there is always the option to average down .

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