How to determine the dividend yield for accumulating ETFs?

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sublimelaconic
Posts: 41
Joined: Fri Aug 09, 2019 10:02 pm

How to determine the dividend yield for accumulating ETFs?

Post by sublimelaconic »

For instance: iShares Core MSCI World UCITS (IWDA)

Also do I get notified whenever there's a dividend payout?

If both are not possible, how do I make sure that I'm actually receiving dividends from that fund?
glorat
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Joined: Thu Apr 18, 2019 2:17 am

Re: How to determine the dividend yield for accumulating ETFs?

Post by glorat »

sublimelaconic wrote: Mon Aug 31, 2020 7:12 am For instance: iShares Core MSCI World UCITS (IWDA)

Also do I get notified whenever there's a dividend payout?

If both are not possible, how do I make sure that I'm actually receiving dividends from that fund?
Accumulating ETFs by definition don't have a dividend payout. As the fund itself receives dividends throughout the year, they automatically get reinvested.

https://www.ishares.com/uk/individual/e ... f-acc-fund
is the most useful link but if you really want to know the internal dividend yield, you'll need to locate the annual report for the fund and see its accounts. The yield would be approximately 1.5% for this ETF.

For distributing funds, your broker will collect dividends on your behalf and put into your account. Check with your broker about how they do notifications.
Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: How to determine the dividend yield for accumulating ETFs?

Post by Valuethinker »

sublimelaconic wrote: Mon Aug 31, 2020 7:12 am For instance: iShares Core MSCI World UCITS (IWDA)

Also do I get notified whenever there's a dividend payout?

If both are not possible, how do I make sure that I'm actually receiving dividends from that fund?
Note therefore you should, in the UK, not hold Accumulating funds outside of a pension or ISA. The tax complications could be nightmarish (let alone figuring out what your book cost was for Capital Gains Tax purposes). In the UK at least, they should only be held in tax protected accounts.
TedSwippet
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Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: How to determine the dividend yield for accumulating ETFs?

Post by TedSwippet »

Valuethinker wrote: Tue Sep 01, 2020 4:10 am Note therefore you should, in the UK, not hold Accumulating funds outside of a pension or ISA. The tax complications could be nightmarish (let alone figuring out what your book cost was for Capital Gains Tax purposes). In the UK at least, they should only be held in tax protected accounts.
Useful reminder for UK based investors.

However, I believe the topic author is in the Philippines (or maybe Japan). We won't know how these countries tax, or don't tax, accumulated dividends in UCITS ETFs.
Rosales
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Re: How to determine the dividend yield for accumulating ETFs?

Post by Rosales »

Should not the dividend yield and date of distributing fund be equal to accumulating? The only difference being reinvestment.
VWRA & chill | Retired @28 y.o.
TedSwippet
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Location: UK

Re: How to determine the dividend yield for accumulating ETFs?

Post by TedSwippet »

Rosales wrote: Tue Sep 01, 2020 9:41 am Should not the dividend yield and date of distributing fund be equal to accumulating? The only difference being reinvestment.
It would if this ETF, SWDA, had a direct distributing alter-ego. Unfortunately, it does not. It's only other two facets are distributing, but both are currency hedged (IWLE/EUR, IWDG/GBP), so the equivalence is not quite perfect.

However, when these distributing facets go ex-dividend in mid-October, mid-January, mid-April and mid-July, it should probably (if currency effects are low enough) be possible to see the IWLE and IWDG NAVs drop by the dividend amount plus/minus market movement, but SWRD's only show market movement.
sublimelaconic wrote: Mon Aug 31, 2020 7:12 am If both are not possible, how do I make sure that I'm actually receiving dividends from that fund?
Can you say what it is that makes you suspect that you might not receive dividends from the fund?

Glorat explains upthread. While you don't 'receive'' them as cash, they add to the ETF's NAV, so that they are nevertheless yours (full explanation in the wiki). The iShares annual report will also show you a full accounting of the dividends received every year by the ETF from the stocks that it holds, and also where and how they have been reinvested internally within the ETF.

If you want dividends in cash on some occasions, just sell a few ETF shares to realise the cash.
mohd
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Location: Bahrain

Re: How to determine the dividend yield for accumulating ETFs?

Post by mohd »

TedSwippet wrote: Tue Sep 01, 2020 10:15 am
Rosales wrote: Tue Sep 01, 2020 9:41 am Should not the dividend yield and date of distributing fund be equal to accumulating? The only difference being reinvestment.
It would if this ETF, SWDA, had a direct distributing alter-ego. Unfortunately, it does not. It's only other two facets are distributing, but both are currency hedged (IWLE/EUR, IWDG/GBP), so the equivalence is not quite perfect.

However, when these distributing facets go ex-dividend in mid-October, mid-January, mid-April and mid-July, it should probably (if currency effects are low enough) be possible to see the IWLE and IWDG NAVs drop by the dividend amount plus/minus market movement, but SWRD's only show market movement.
sublimelaconic wrote: Mon Aug 31, 2020 7:12 am If both are not possible, how do I make sure that I'm actually receiving dividends from that fund?
Can you say what it is that makes you suspect that you might not receive dividends from the fund?

Glorat explains upthread. While you don't 'receive'' them as cash, they add to the ETF's NAV, so that they are nevertheless yours (full explanation in the wiki). The iShares annual report will also show you a full accounting of the dividends received every year by the ETF from the stocks that it holds, and also where and how they have been reinvested internally within the ETF.

If you want dividends in cash on some occasions, just sell a few ETF shares to realise the cash.
So it's not possible to know how much dividends are re-invested quarterly?
TedSwippet
Posts: 3165
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: How to determine the dividend yield for accumulating ETFs?

Post by TedSwippet »

mohd wrote: Tue Sep 01, 2020 11:14 am So it's not possible to know how much dividends are re-invested quarterly?
Quarterly, perhaps not precisely, though you might be able to infer it from the actions of similar distributing ETFs. Annually, you can discern it from the iShares (or other provider) annual reports.

In a real sense though, if dividends are not taxable annually to you then why would you care? What you really want to see as an investor is total return, and you can see that directly from the change in an accumulating ETF's NAV.
c-strong
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Joined: Sun Aug 02, 2020 4:10 pm

Re: How to determine the dividend yield for accumulating ETFs?

Post by c-strong »

The easiest way to find a dividend yield for an accumulating ETF is to look it up on Morningstar, which gives the dividend yield in the Portfolio tab, e.g.:

https://www.morningstar.co.uk/uk/etf/sn ... entType=FE

You have to set up an account, but it’s free.
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