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S&P 500 Distributing ETF
Comments
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i have VWRL funds with HL and searching google, that states the dividends are paid out in US dollars but the broker will convert it to sterling before paying it to you.
VUSA also seems to be doing this on google search. I will be holding the funds on HL.
Yes, the distributing version of the Vanguard S&P 500 UCITS ETF (VUSA) distributes income inU.S. Dollars (USD).
Vanguard UK +1Base Currency & Dividends:While VUSA is often listed on the London Stock Exchange in GBP (for convenience), its base currency is USD, and the dividends it receives from underlying S&P 500 companies are paid out in dollars.Currency Conversion:If you hold VUSA on a platform that operates in GBP (e.g., in a UK ISA), your broker will typically convert the USD dividend payment into GBP, potentially applying currency exchange fees.VUSD vs. VUSA:There is a directly comparable ETF namedVUSDlisted on the London Stock Exchange that is quoted in US dollars, whereas VUSA is often quoted in GBP, though both offer the same (USD) distributing shares.- Vanguard UK +5
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If it's held in an ISA, a broker does have to convert dividends to sterling, since ISAs cannot hold foreign currency. You may be charged a fee for this, however, which may or not not be obvious.
This comment from 2022 said HL then charged 1% on converting ETF dividends to sterling:
and said they didn't make this very clear, so it's not easy to see if they still do this. But if you're wedded to it being an ETF, you don't really have a choice.
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It's almost as if context and nuance is required to arrive at a suitable answer. This is precisely why conscientious posters ask follow-up questions of OPs.
As mentioned above (and earlier in the discussion) USD dividends converted to GBP means an ongoing forex cost each time you receive a dividend. Whereas when converted by the fund manager, in for example an OEIC, it will be done at a better rate than you're likely to get from the likes of HL. And HL supports funds like Vanguard US Equity Index Inc, which pays out dividends in GBP. Is there any particular reason why you wouldn't use ?
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That Vanguard fund is 3500 holdings. For just the S&P it could be But the OP has said he wants an ETF, knows what he is doing (despite evidence to the contrary) and we should not ask questions so I apologise for posting this.
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i have had VWRL in my ISA, SIPP and Share & Fund account and the dividends are paid in GB. So I am guessing that HL does the conversion.
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yes, I am only interested in ETF. I am not interested in anything else. I have my reasons. and I specifically want one that tracks the S&P 500 index. i am not interested in anything else.
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EthicsGradient pointed you to www.justetf.com way back in this thread which means you can do your own research and, as far as I can see, there is nowhere further to take this. Good luck and be less snappy in future. You make more friends with honey than vinegar.
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Yes it does, at a cost to you.
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@aroominyork You make more friends with honey than vinegar.
A Turkish chum of mine said that round his way there's a phrase that roughly translates to Another man's vinegar is sweeter than your own honey if I've remembered that right.
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there is always a cost to everything. it isn't surprising.
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