Ishares ITF DRIP question

WeatherMan

Hi Everyone,

Just been looking at ishares website and can't ascertain if they offer a DRIP reinvestment of dividends program. Does anyone know?

Also, if they don't, does anyone know of a broker who would offer it anyway? i have seen such broker programs in the US for similar ETFs.

Cheers,

WeatherMan

cheerfulcat

Hi, WM,

No, Barclays don't offer a DRIP scheme, though some brokers do - the Halifax Sharebuilder, for example.

WeatherMan

Thanks Cheerful Cat,


I see that this would cost 1% (capped at £1.50). Are you aware of any broker who offers this free? Also any broker offering an ISA wrapper (of minimal price, for long-term investment, minimal buys/sells) who would allow this sort of dividend reinvestment?

WeatherMan

cheerfulcat

WeatherMan, Squaregain will provide an ISA wrapper for £25 a year. Buying ETFs is free of commission within the ISA. AFAIK there is no mechanism for automatic reinvestment but it shouldn't be too difficult to do this manually. ISTR that Hargreaves Lansdown will reinvest dividends as soon as they come to ~£200 but the charges for the ISA wrapper are fairly hefty; can't remember whether they charge for the reinvestment.

Cheerfulcat