INC version of a fund more expensive than the ACC

Kaizen917

Maybe Im too inexperienced in this and missing an obvious detail but I was having a look at how the SP500 funds performed in my Vanguard (VUSA) and InvestEngine(VUAG) portfolio over the last week and got me thinking that I couldnt explain to myself why the DIST version of the fund holds a higher price. Just to clarify, VUSA distributes income and VUAG reinvests the dividents and at the time that I started investing with each, they only offered one (although it seems that IE offers VUSA now as well). Normally the ACC version would hold significantly higher price over its DIST equivalent and this difference will be more visible over time.

But in this case VUSA actually holds a higher prices despite it being the income version (right now GBP 60.26 vs 59.00 for VUAG). Is this normal and what could explain it? I was suspecting its to do with currency fluctuations but both appear to be the same in that regard. Could it be to do with VUSA being an older fund?

NoMore

AIUI, Sort of, I don't think you should compare them directly any way on price, but when Funds are launched they have to be given some sort of starter Price, say 10, the Price from then on is decided by the performance of the shares within it, so unless they were launched on the same day with the same price and invest in the same things, you can't compare the price.

masonic

Price is irrelevant as it is set at an arbitrary value when the fund is launched. It happens that the Inc version has been around longer than the Acc version, so there has been more time for the price to grow from its starting value.

Kaizen917

Thanks guys, that makes sense!