Acc vs Dist ETF

tel_

dunstonh said:

I tend to go Inc units as it allows replenishment of the cash account with any excess going into other funds and not necessarily the same one it came from.  However, I use platforms that dont charge for reinvestment

Is there a way of reinvesting dividends automatically, let's say, in iWeb, without having to incurre a dealing charge?

I understand there definitely would be if you are reinvesting those dividends into a different IT, fund etc, but what about reinvesting straight back into the same fund?

Do people tend to stay away from platforms that charge a dealing charge if they are solely/predominantly holding Inc funds?

dunstonh

Is there a way of reinvesting dividends automatically, let's say, in iWeb, without having to incurre a dealing charge?

yes there is but it depends on the platform and I dont know iWeb's charges.  

I understand there definitely would be if you are reinvesting those dividends into a different IT, fund etc, but what about reinvesting straight back into the same fund?

Actually, inventing in a different asset doesnt necessarily mean new charges.  It again depends on the platform in question.

Do people tend to stay away from platforms that charge a dealing charge if they are solely/predominantly holding Inc funds?

Charges are on part of the research when you look at platforms.  They should not be the primary reason for choosing a platform.  Some platforms have simple charges. Some have a whole menu of charges.   So, you need to look at the whole picture to see which comes out best.     If a platform doesn't do what you want it to do and that is available elsewhere then you should move to the platform that does what you want.

Alexland

tel_ said:

Is there a way of reinvesting dividends automatically, let's say, in iWeb, without having to incurre a dealing charge?

Given that you are not paying iWeb an ongoing fee (apart from on their SIPP which goes to the plan administrator AJ Bell) then no they wouldn't be willing to do that for free. The trick is to hold an accumulating investment on such execution only platforms, draw the income or reinvest at the same time as making a new contribution under a single trade.

With other platforms where you are paying an ongoing charge they might allow you to reinvest dividends for no additional cost but even then it might depend on the type of investment you are holding.

tel_

Alexland said:

Given that you are not paying iWeb an ongoing fee (apart from on their SIPP which goes to the plan administrator AJ Bell) then no they wouldn't be willing to do that for free. The trick is to hold an accumulating investment on such execution only platforms, draw the income or reinvest at the same time as making a new contribution under a single trade.

I thought I'd ask the question, as I know some of you have good tips and tricks on making the most of keeping costs to a minimum 😉.

On a platform like iWeb, it's best to keep Inc funds, IT's etc to a bare minimum, if you are primarily interested in compounding your gains then.

Investing once/twice a year your dividends, along with additional contributions as you say.