8Mon·

Dividends as a savings plan in this ETF. I am considering reinvesting my dividends as a savings plan in this broadly diversified ETF.

$SPYI (+0.19%)

7 Comments

Silas@Bein-Godik

8Mon

Sure, why not? Many do so

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Banana M.@Banana_Millionaire

8Mon

Jo, good idea. I have the same one.
DM + EM and small caps included.

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Ruben Schoff@Sand

8Mon

@Banana_Millionaire yes, it absolutely convinces me on all levels!

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Manuel@Ghoscht

8Mon

I do something similar, I use it as a distributing variant for interest (I like compound interest to watch). $SPSA
Unfortunately started before Trump started with his tariffs, so still slightly in the red.

For dividends I've been using the FTSE AllWorld high Dividend $VHYL for 2.5 years now
I think it's more of a psychological thing, because it's cool to watch. In the end, there's probably a lack of yield, but I don't care. I can say that what's in there are all dividends and I didn't pay "a cent" for it.
In the end, it spits out even more and that was also "free" 🥴

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Ruben Schoff@Sand

8Mon

@Ghoscht I also take the Van Eck morningstar highdividend Leaders etf and then I also have something distributing and the composition fits well with few overlaps. Good luck to you!

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Lars92@Lars92

8Mon

Why don't you save yourself the permanent withholding tax and simply invest the money directly in an accumulating ETF? Am I backing the wrong horse?

ETF A accumulator, ETF B dividend ETF. For example the one from VanEck (Morgningstar).

You tie up capital in the dividend ETF and want to use the dividends to invest in the accumulator.

So you trigger withholding tax at least once a quarter and the price is usually worse than that of the accumulator. In the end, you still have the hassle of deducting the withholding tax from your income tax return. Unless your broker does this automatically.

In my opinion, this only makes half sense if you don't exceed your tax-free amount.

Or am I seeing this wrong?

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Ruben Schoff@Sand

7Mon

@Lars92 Yes, you're right, I'm going to start with a savings plan on the spdr msci acwi imi. There's no tax-free allowance in Austria and I'm already paying enough with my numerous divi shares anyway. The Van Eck morningstar Dividend Leaders is performing really well and the composition also fits in well with the acwi imi with little overlap - that was my argument.

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