Xtrackers S&P 500 Equal Weight UCITS ETF USD (Acc.) XDWE

Stock Discussions
1

This ETF tracks the performance of the S&P 500 Equal Weight Index which allocates a fixed weight to each company. This fund reinvests dividends back into the fund.

2

Anyone invested in this? Went down a rabbit hole at the weekend of market cap weighted vs equal weight and just interested to know of peoples reasons for choosing this, if they wanna share?

3

I like the idea. I think theres a few equal weighted ETFs out there but I think this is the only one Freetrade has. For an S&P 500 ETF though the fee is quite high

4

Im curious if tis pays dividend, it says it reinvests but on freetrade theres no dividend percentage

5

tl;dr This is an Accumulating ETF. You donā€™t get a cash dividend.

As you correctly point out the About section in the app says:

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It reinvests dividends back into the fund. The ā€œDividend yieldā€ is indicated as ā€˜-ā€™. The reason this is done (many, perhaps all UK brokers do this) is so that you donā€™t get confused and think that the ETF distributes cash to the holder. To find out the dividend yield you would have to refer back to the providerā€™s, which in this case is DWS, website.

But, I think you are right and the ETF information in the Stats should indicate the dividend yield even if it is not distributed as cash. It actually becomes very important when you have to work out Tax liabilities (outside a ISA/SIPP). Product management has indicated that they intend to provide this information in the activity tab at a later date; so one hopes it will appear in the app in the Share information too.

cc @JamesBell

2 Likes
6

Had this stock a year, had no dividends reinvented so think ill sell

7

You donā€™t see the dividends at all as items in your activity feed. The fund/ETF does the reinvestment behind the scenes for you.

8

Oh i guess they havent payed dividends in a year then, they wouldnt do it behind the scenes, no idea where you got that from lol

9

Itā€™s an accumulation ETF so dividends are added directly to the fund. This is in contrast to a distribution ETF where dividends are paid out as a dividend. Some funds are available in both variants. There are plusā€™s and minusā€™s to each type of fund.