ETF Question HMWO vs HMWSLN

Pat38493

Can I just check with the more experienced investors here - is HMWSLN the Accumulation equivalent of HMWO?

My investment learning journey continues - I was wondering why about 700USD suddenly appeared in my Interactive Investor account.  After looking into this, and luckily before making myself look an idiot by complaining to II about magic money appearing, I realised that HMWO which I am currently heavily invested in is an income fund whereas I stupidly assumed it was an accumulation fund.

Since II charges for dividend reinvestments I will probably switch this to the accumulation version if available.

(this is not related to my other thread where I am asking about income funds - it's just a strange coincidence that this happened now!)

ColdIron

HMWS (or HNWS.LN) is the London listed accumulating version of HMWO (or HMWO.LN). Both GBP

Pat38493

ColdIron said:

HMWS (or HNWS.LN) is the London listed accumulating version of HMWO (or HMWO.LN). Both GBP

So basically yes.

And I also now am aware that even if an ETF is listed in GBP, the if it's a USD fund underneath the dividends will pay out in USD.  You live ane learn.

On the bright side, it's been a good quarter for that fund.

ColdIron

As an accumulating fund the dividends won't be paid out, they'll just be retained within the fund. Given that nearly 72% of the allocation is in the US and therefore the dividends are generated overseas the currency conversion has to take place somewhere. The Acc class may benefit you with fewer Fx round trips if reinvesting them

LHW99

II gives free trades (how many depends on which plan you pay for). Can you use those to re-invest / switch?

Pat38493

LHW99 said:

II gives free trades (how many depends on which plan you pay for). Can you use those to re-invest / switch?

At the moment with II, I am only on the SIPP - I don't have the ISA or GIA so I don't get free trades.

I am setting up my ISAs and other funds with another provider for now as I don't have enough in my name outside the SIPP to justify the II one time charges.  

I also realized that the Income version of the fund which I mistakenly invested in, is not eligable for Dividend reinvestments at 99p so I would have to pay the full transaction fee to re-invest them.

Further, my cash is probably exposed to FX charges as I guess I would then have to convert them to GBP to re-invest - I didn't try that yet.

Rather, I will probably sell these investments and move them into HMWS but I'll probably do it in a few chunks.