ETF Accumulating and ETF Distributing Investment timing switch

masonic

https://forums.moneysavingexpert.com/discussion/comment/82115492#Comment_82115492

Making a prediction now about what funds will be most appropriate not to rely on in over 7 years time does not seem like a very good idea to me. Switching to some of them now creates a problem of having to do something with 7 years of definitely unneeded income.

Your existing funds give you the default of reinvesting income, which is presumably what you'd do while still earning. That does not prevent you from accessing the money if you need it. You can even restrict yourself to selling the value of the arbitrary declared dividend amount if you wish.

Perhaps this is something to revisit in late 2032.

george4064

note that a lot of the distributing global ETFs (I’d say vast majority), pay distributions in the fund’s local currency which is nearly always USD. This means that you will likely incur a FX charge from your platform for each dividend processed, this will eat into your dividend yield.

It’s hard to work out which pay in base currency (USD) and which pay in share class currency (GBP), if someone has a list of these that would be v handy!

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82116248#Comment_82116248

With Vanguard, look at the Distributions tab, for example:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-ucits-etf-usd-distributing/distributions

SilverOx

Thanks for the feedback everybody.

I'm going to continue as I am with investing into the global etfs and focus on growing the pot.