With dividend payments coming up soon, I'm trying to figure out the best strategy for reinvesting that money.
I have the following ETFs in my tax-advantaged accounts:
- Vanguard REIT ETF (VNQ)
MSCI Canada Index ETF (VCE)
My "battle" lies with my taxable account, where I hold both VTI and VXUS.
- 1) Should I take the dividends from VTI and VXUS and reinvest the money (as a DRIP would) back into the ETF in question?
2) Or should I treat both dividends in the account as a "whole" and use the full amount to purchase more shares of only VTI or VXUS?
I'm looking to know if there is an optimal strategy when it comes to reinvesting dividends.