VUSA or VUAG..?

C_Mababejive

As a UK resident,which one should i be buying and whats the difference?

Thanks

bowlhead99

C_Mababejive said:

As a UK resident,which one should i be buying and whats the difference?

Thanks

They are two separate share classes of the same Irish domiciled ETF, both available on the London stock exchange priced in GBP.

VUSA distributes income quarterly while VUAG accumulates its income. Of the ~$26bn assets under management in the fund, $24.8bn of it is in the longer-established distributing class; the other $1.2bn is in VUAG which has only been going since last year.

You might find the higher volume of market activity on VUSA gives it a slightly better bid-offer price spread, but you're exposed to the same underlying assets for the same OCF. The question is just whether you want accumulating or not. It's a UK reporting fund so no tax issues with using the accumulating one, other than having to get their annual reports to figure out how much dividend income was earned and accumulated without being distributed, which would be minimal with VUSA but more significant with VUAG.

If you were using Vanguard's own consumer platform vanguardinvestor.co.uk, I don't think they currently offer the accumulating versions of their ETFs but you can get it via other third parties' platforms or brokers.