Re investing ETF dividends

F

Favourite

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Hello

I am looking to buy some ETFs. I need them to reinvest any dividends.

I would like

S&P 500
Broad based World wide Bonds
Broad based China
Bric

I can find all of these on Ishares and other places but I cant tell if they re-invest the dividends or pay them out??

Where can I find this information?

Can I tell my discount broker (US) to reinvest the dividends or do I need to find EFT's that specifically state that they reinvest the dividends?

any advice would be much appreciated.
 
Hi Favourite, the iShares that re-invest the dividends usually have (ACC) after them. So, for the S&P 500, the stock symbol if you want your dividends in cash is IUSA (that's on LSE) but the accumulating version is SACC. On the iShares website, you'll be able to see under Key Facts the 'Use of Income'. It will either be distributed or accumulating. Hope that helps.
 
Thank you very much for the reply, much appreciated.

Do you know if I get paid dividends and I then get my broker to immediately re invest them back into the fund will I still be liable for tax on those dividends?
 
I'm very much not a tax expert but I would imagine that yes you would still be liable. You would have to have a serious amount invested as well just to cover the cost of your trades, let's say you had E250k invested in dividend yielding stocks and let's say you get 1% pa, you would end up getting just over E200 per month in dividends. If you re-invested at a cost per trade of E20, that would eat up around 10% of your dividend. Best to accumulate. Sorry I can't be more helpful on the tax front.
 
Yes, you are liable for any dividends paid from a stock or fund. It makes no difference if you reinvest. So concentrating on total return ETFs where divs are reinvested can assist you tax wise but it is a relatively minor issue in the scheme of things I would have thought.

Rory Gillen
 
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