VWRL

bungleberg

Hi,

I bought VWRL VANGUARD FUNDS PLC FTSE ALLWORLD UCITS ETF US though iWeb Platform, I just noticed that there was some cash to invest showing in my account. It seems there was a dividend paid. I thought mistakenly that VWRL was accumulating rather than income. My question is can I have the same fund on an accumulating basis??

Thanks in advance

AnotherJoe

Apparently it's VRWA. 

bowlhead99

bungleberg said:

I bought VWRL VANGUARD FUNDS PLC FTSE ALLWORLD UCITS ETF US though iWeb Platform, I just noticed that there was some cash to invest showing in my account. It seems there was a dividend paid. I thought mistakenly that VWRL was accumulating rather than income. My question is can I have the same fund on an accumulating basis??

AnotherJoe said:

Apparently it's VRWA. 

not quite:

VWRP is tracking the same index, priced in sterling and accumulating, so is the accumulating equivalent of VWRL that you have (priced in sterling, distributing version)

The accumulating one priced in dollars is VWRA , i.e. an accumulating version of VWRD (the priced in dollars, distributing version)

The wrinkle if you use the accumulating version is that you'll have to get yourself a copy of the 'excess reportable income' report (e.g. https://global.vanguard.com/documents/institutional/vf-plc-excess-reportable-income-30-june-2019.pdf) published annually to find out what income was received by the fund and not distributed so that you can track it for income tax purposes (and to find the amount of income that was deemed re-invested on your behalf, increasing your base cost for CGT).   But obviously not an issue if you are using an ISA or a pension where tax isn't tracked, and if you had mistakenly assumed that VWRL was an accumulating fund anyway, I guess you were expecting to need to do that anyway.

bungleberg

bowlhead99 said:

bungleberg said:

I bought VWRL VANGUARD FUNDS PLC FTSE ALLWORLD UCITS ETF US though iWeb Platform, I just noticed that there was some cash to invest showing in my account. It seems there was a dividend paid. I thought mistakenly that VWRL was accumulating rather than income. My question is can I have the same fund on an accumulating basis??

AnotherJoe said:

Apparently it's VRWA. 

not quite:

VWRP is tracking the same index, priced in sterling and accumulating, so is the accumulating equivalent of VWRL that you have (priced in sterling, distributing version)

The accumulating one priced in dollars is VWRA , i.e. an accumulating version of VWRD (the priced in dollars, distributing version)

The wrinkle if you use the accumulating version is that you'll have to get yourself a copy of the 'excess reportable income' report (e.g. https://global.vanguard.com/documents/institutional/vf-plc-excess-reportable-income-30-june-2019.pdf) report a few months after every tax year to find out what income was received by the fund and not distributed so that you can track it for income tax purposes (and to find the amount of income that was deemed re-invested on your behalf, increasing your base cost for CGT).   But obviously not an issue if you are using an ISA or a pension where tax isn't tracked, and if you had mistakenly assumed that VWRL was an accumulating fund anyway, I guess you were expecting to need to do that anyway.

Thank you, Now I have to decide the best time to sell up and reinvest. Otherwise I will have to reinvest manually every time there is a dividend.

bowlhead99

bungleberg said:

bowlhead99 said:

bungleberg said:

I bought VWRL VANGUARD FUNDS PLC FTSE ALLWORLD UCITS ETF US though iWeb Platform, I just noticed that there was some cash to invest showing in my account. It seems there was a dividend paid. I thought mistakenly that VWRL was accumulating rather than income. My question is can I have the same fund on an accumulating basis??

AnotherJoe said:

Apparently it's VRWA. 

not quite:

VWRP is tracking the same index, priced in sterling and accumulating, so is the accumulating equivalent of VWRL that you have (priced in sterling, distributing version)

The accumulating one priced in dollars is VWRA , i.e. an accumulating version of VWRD (the priced in dollars, distributing version)

The wrinkle if you use the accumulating version is that you'll have to get yourself a copy of the 'excess reportable income' report (e.g. https://global.vanguard.com/documents/institutional/vf-plc-excess-reportable-income-30-june-2019.pdf) report a few months after every tax year to find out what income was received by the fund and not distributed so that you can track it for income tax purposes (and to find the amount of income that was deemed re-invested on your behalf, increasing your base cost for CGT).   But obviously not an issue if you are using an ISA or a pension where tax isn't tracked, and if you had mistakenly assumed that VWRL was an accumulating fund anyway, I guess you were expecting to need to do that anyway.

Thank you, Now I have to decide the best time to sell up and reinvest. Otherwise I will have to reinvest manually every time there is a dividend.

The next ex-dividend date is not until September, so assuming you've now already received the payment due 24 June, then unless you are going to put more money into your account by then, there's no time like the present...