Guys, I was looking to compare ETFs that are exactly the same except their dividends distribution policy. Accumulating do not pay dividends, they claim they buy more underlying stocks with the dividends they collect form their holdings and this should be reflected in their NAV over time. By NAV I understand their asking price when you buy them.
I was comparing on justeft
- iShares Core EURO STOXX 50 UCITS ETF EUR (Acc)
- iShares Core EURO STOXX 50 UCITS ETF EUR (Dist)
Their 1 year performance is 34.30% and 34.29% respectively. Okay, no much accumulation happened in one year.
Their 5 year performance is 66.64% & 67.32% respectively. Wait what, why has the Distributing fund performed better, this doesn't make any sense to me. Can someone explain? I don't want to jump the gun and claim that accumulating funds are a scam and just buy distributing and reinvest the proceeds yourself, but this is what I think now...
Submitted June 14, 2021 at 05:35AM by dryhole https://ift.tt/35glxN5
