Dobromir (@Hunchback) su getquin

1Anno·

Hello,

Me and my wife have recently invested in $IWDA (-0,43%) and $SMEA (-1,44%) . We picked these because they are accumulating funds, we are not aiming to profit instantly from dividends.

However, i can't figure out when and how exactly is the redistribution / reevaluation of the funds happens. On the official iShares pages they say "quarterly" but i can't find anything more.

Can someone please explain how this works?

#etfs
#dividends

5 Commenti

Beat The Bank@randomdude

1Anno

The information provided by ishares is complete. The fund is rebalanced at regular intervals, in this case quarterly.
This has nothing to do with the dividends paid by the companies in the fund. Dividends are paid at irregular intervals and are continuously reinvested.

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Beat The Bank@randomdude

1Anno

1) https://en.wikipedia.org/wiki/Rebalancing_investments (you might replace „portfolio“ by „fund“ in your case)
2) No, you won‘t get more shares in the fund. Since Management buys new stocks from the dividends paid, your shares become more valuable.

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Dobromir M.@Hunchback

1Anno

@randomdude I see better now, thanks. That's a bit worrying tho, since looking at the charts of the Accumulating vs Distributing versions of these ETFs, the value doesn't seem to change much between them, yet one will distribute the dividends and the other not... Hmmm

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Dobromir M.@Hunchback

1Anno

So what is "rebalancing" ? And how do the dividends paid by the companies to the fund affect our investment in reality? Do we get more shares or ? I thought the whole idea of an accumulating fund was to automatically invest what you WOULD have gained in dividends, back into the fund and thus... accumulating ?

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