Looking for ETF that reinvests Dividends

The TER is listed on Ishares website and it shows all the exchanges its listed on , I think its the same regardless of exchange , I don't see why it would be different , are you still going the ETF route despite the tax issues ? I'm moving away from these exact funds your looking at investing in.
 
Fella said:
The TER is listed on Ishares website and it shows all the exchanges its listed on , I think its the same regardless of exchange , I don't see why it would be different , are you still going the ETF route despite the tax issues ? I'm moving away from these exact funds your looking at investing in.
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These funds do seem to benefit the lump-sum investor who does not wish to deal with ongoing tax issues, also those investors who are exposed to high income tax USC and PRSI (52%) on US ETF or share dividend income.
But for the moment I still haven't made up my mind. I have emailed someone in the AIC and am waiting for a response on whether their website can filter for acculating investment trusts.
I am also now looking into Berkshire Hathaway ...Warren Buffets company. I will read the thread on here about his company later tonight.
 
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Dont forget the lump sum investor into an ETF runs the significant risk of buying into the high market (after current 5 year bull run). You are 100% trying to time the market then.....
 
username123 said:
Dont forget the lump sum investor into an ETF runs the significant risk of buying into the high market (after current 5 year bull run). You are 100% trying to time the market then.....
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I do agree with this and understand that dollar (euro) cost averaging probably in the long run is the safest option. However as I have understood from Rory Gillen's book, trying to time the market becomes less important considering a 10 to 20 year investment.
 
Do I have this wrong or is this exactly the same fund, one on the Amsterdam stock exchange and the other on the German stock exchange with different expense ratios?


iShares Core MSCI World UCITS ETF (EUR) (IWDA)
TER on Amsterdam stock exchange is 0.2% (well it actually says ongoing charges is that the same thing?)
http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000MLIH


iShares Core MSCI World UCITS ETF
same fund on German stock exchange. (Although I can't find the ticker code on this German stock exchange website). TER 0.4%
http://www.boerse-frankfurt.de/en/etfs/ishares+core+msci+world+ucits+etf+etf+IE00B4L5Y983
 
Sarenco said:
Yes, that's spot on.

Ignoring the (relatively marginal) impact of costs and taxes, the return will be basically identical over such a short period - in the case of distributing shares your cash balance will be slightly higher and in the case of accumulating shares your shares will be worth slightly more. In euro terms, it's basically a wash but don't forget the compounding impact of (reinvested) income over time.
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These ETF's we have been discussing are open ended and therefore are able to re-invest income. The article below goes some way in explaining why I am having so much difficulty locating accumulating investment trusts.


http://www.money.co.uk/guides/whats-the-difference-between-income-and-accumulation-funds.htm
Investment Trusts
Investment Trusts are slightly different. They are 'closed ended' which means the fund is made up of a finite number of shares whose price isn't directly linked with the fund's overall investment; you can potentially buy overpriced or underpriced shares.
This also has implications for the question of Income vs. Accumulation. With a limited number of shares available, they may not offer the facility to automatically reinvest your profit. As such you will need to proactively buy back into the fund if you're in it for accumulation.

Also this article
[broken link removed]
Treatment of income
Investment Trusts must not retain more than 15% of the total revenue, before expenses, that they generate, meaning that they are required to distribute most, but not all, of their earnings as dividends to their shareholders. The retained earnings can be held in reserve to smooth income distributions in lean years, ensuring a greater cons
 
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Another fantastic website specifically for ETFs
If you search for say EURO STOXX 50 it will bring up all the ETFS which track this indicie and give ON THE SAME PAGE the, currency, the fund size, the TER, the yearly % up/down and whether it's accumulating or distributing. Some very usefull info to be all listed on the same page!!!

https://www.justetf.com/en/find-etf...er&sortOrder=asc&groupField=none&tab=overview

I am trying to figure out how you accurately judge tracking error.
On the web site above, there are 2 ETFs I am interested in.

1. db x-trackers EURO STOXX 50 UCITS ETF (DR) 1C EUR 1,982 0.09% 11.51% Accumulating
and
2. iShares Core EURO STOXX 50 UCITS ETF EUR 960 0.10% 11.72% Accumulating

The DB-x tracker has a lower TER, however only reflected a 11.51% yearly rise.
The I shares tracker has a higher TER but showed a better performance for the fund at 11.72%.
Is this representative of a greater tracking error for the DB-X tracker and reason to select the i shares tracker instead?
 
landlord said:
.

These ETF's we have been discussing are open ended and therefore are able to re-invest income. The article below goes some way in explaining why I am having so much difficulty locating accumulating investment trusts.


http://www.money.co.uk/guides/whats-the-difference-between-income-and-accumulation-funds.htm
Investment Trusts
Investment Trusts are slightly different. They are 'closed ended' which means the fund is made up of a finite number of shares whose price isn't directly linked with the fund's overall investment; you can potentially buy overpriced or underpriced shares.
This also has implications for the question of Income vs. Accumulation. With a limited number of shares available, they may not offer the facility to automatically reinvest your profit. As such you will need to proactively buy back into the fund if you're in it for accumulation.

Also this article
[broken link removed]
Treatment of income
Investment Trusts must not retain more than 15% of the total revenue, before expenses, that they generate, meaning that they are required to distribute most, but not all, of their earnings as dividends to their shareholders. The retained earnings can be held in reserve to smooth income distributions in lean years, ensuring a greater cons
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Yes, investment trusts are not funds and therefore conceptually you cannot have an "accumulating IT". In addition, all ITs (including REITs) are required to distribute the bulk of their income under the applicable UK tax rules. However, there are plenty of IT's that invest primarily in growth companies that have low dividend rates.
 
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