How does this consumer discretionary fund reinvest its dividends and grow?

isayhello

I invested some money earlier this year in a fund called ICDU in consumer discretionary, I must admit I did it without much research. When I look at my statement now I don't see any dividends that have been paid out and when I research it I cant find any information on dividend yields, so I'm a bit confused. Is the price of this fund just being affected by the companies it holds doing better and worse or do the profits of the companies it holds somehow get put back in and increase the value of each unit?

ColdIron

According to the Factsheet it's an accumulating ETF so there are no cash distributions. The dividends will just increase the share price but given it's almost 100% US they won't be very high anyway

• Use of Income Accumulating

Hoenir

Net income will be reinvested. Neither of the two largest holdings Amazon and Tesla which account for around 47% of the portfolio pay a dividend. Generally the larger US stocks are low yielding. 

wmb194

isayhello said:

I invested some money earlier this year in a fund called ICDU in consumer discretionary, I must admit I did it without much research. When I look at my statement now I don't see any dividends that have been paid out and when I research it I cant find any information on dividend yields, so I'm a bit confused. Is the price of this fund just being affected by the companies it holds doing better and worse or do the profits of the companies it holds somehow get put back in and increase the value of each unit?

It says in the key facts section: "Use of Income: Accumulating."

https://www.ishares.com/uk/individual/en/products/280526/ishares-sp-500-consumer-discretionary-sector-ucits-etf

boingy

isayhello said:

I invested some money earlier this year in a fund called ICDU in consumer discretionary, I must admit I did it without much research. When I look at my statement now I don't see any dividends that have been paid out and when I research it I cant find any information on dividend yields, so I'm a bit confused. Is the price of this fund just being affected by the companies it holds doing better and worse or do the profits of the companies it holds somehow get put back in and increase the value of each unit?

That fund terrifies me. About half of it is invested in just two companies, one of which is run by an impulsive madman (other opinions are available...)

Your NY Resolution should probably involve researching stuff before investing in it! 

isayhello

ColdIron said:

According to the Factsheet it's an accumulating ETF so there are no cash distributions. The dividends will just increase the share price but given it's almost 100% US they won't be very high anyway

• Use of Income Accumulating

That factsheet mentions IUCD which I had found as well but are they the same thing? my investment is labelled ICDU.

isayhello

Hoenir said:

Net income will be reinvested. Neither of the two largest holdings Amazon and Tesla which account for around 47% of the portfolio pay a dividend. Generally the larger US stocks are low yielding. 

If they are not paying much in dividends, has the funds performance done well e.g. in 2020 just because the companies it holds did well and made big profits? I thought the dividends usually have a big effect on the price.

isayhello

boingy said:

That fund terrifies me. About half of it is invested in just two companies, one of which is run by an impulsive madman (other opinions are available...)

Your NY Resolution should probably involve researching stuff before investing in it! 

Agreed, it had a big fall shortly after I bought it but luckily has recovered a lot, I'm tempted to get out of it soon but I did think the companies it holds should do well.

ColdIron

isayhello said:

ColdIron said:

According to the Factsheet it's an accumulating ETF so there are no cash distributions. The dividends will just increase the share price but given it's almost 100% US they won't be very high anyway

• Use of Income Accumulating

That factsheet mentions IUCD which I had found as well but are they the same thing? my investment is labelled ICDU.

Same thing, just different trading currencies. From the Factsheet:

boingy

isayhello said:

ColdIron said:

According to the Factsheet it's an accumulating ETF so there are no cash distributions. The dividends will just increase the share price but given it's almost 100% US they won't be very high anyway

• Use of Income Accumulating

That factsheet mentions IUCD which I had found as well but are they the same thing? my investment is labelled ICDU.

They are essentially the same fund but one is in USD and one in GBP. Read the "Dealing Information" at the bottom of the first page in the Factsheet link.

wmb194

isayhello said:

ColdIron said:

According to the Factsheet it's an accumulating ETF so there are no cash distributions. The dividends will just increase the share price but given it's almost 100% US they won't be very high anyway

• Use of Income Accumulating

That factsheet mentions IUCD which I had found as well but are they the same thing? my investment is labelled ICDU.

Scroll to the bottom of the page: there are different tickers for different versions. ICDU is the GBP version listed in London.