Last updated on June 14th, 2021
If you’ve delved into the world of UCITS ETF investing, you may have come across funds that end with ‘
DIST‘, and those that end with ‘
ACC‘. What is an accumulating ETF and how is it different from a distributing ETF? Here’s everything that you need to know about these 2 types of ETFs:
Accumulating vs Distributing ETFs
As a general rule, these two types of ETFs
differ in how they handle the dividends they receive. Accumulating ETFs
automatically reinvest the dividends into the fund. Meanwhile, distributing ETFs will
distribute these dividends to you. Both ETFs will incur the same dividend withholding taxes. However,
one type of ETF may be more tax efficient in certain countries compared to the other. Here is a
detailed comparison between these 2 types of ETFs:
Definition
Here are the two definitions of these 2 different types...