ETF equivalent to VNRA

đź“Š Investing
1

Hello guys,

I’m searching for ETF equivalent to VNRA because it’s not traded on this platform. So is there an ETF that is accumulating and weighted towards US stocks.

Thanks for your help in advance!

2

I believe you are looking for VNRT

3

Thanks, @MitchB, for the recommendation! VNRT is sadly distributing ETF. CSPX might be the closest to get, but it’s traded in US dollars, and I wouldn’t like to mix it up with VWCE which is traded in euros.

4

Sorry I don’t know how I missed that SPXP is also a good option.

1 Like
5

@Daikoku what is wrong with distrubuting ETFs? I’m a newbie so don’t know what that means. I’m in the process of picking a few good ETFs for myself.

6

@pipo There is nothing wrong with distributing ETFs. It’s just that if you are looking for portfolio growth as opposed to regular income an accumulating ETFs are the best choice as they the dividends are reinvested back into the fund increasing it’s value.

If you were to buy a distributing ETF you would have to reinvest those dividends yourself for the same effect, this is not a huge problem on trading 212 as there are no commissions, it just causes you a bit more work and some time out of the market and your dividend amount may not be enough to buy a share. On other platforms it would be a larger problem as you would have to pay a commission to reinvest your dividends into the fund.

1 Like
7

Make 100% sense thanks.

8

@pipo as @MitchB said there is nothing wrong with owning distributing ETFs, but in my case, I have to pay tax on them unless there is some mechanism that I can bypass direct taxation, that I’m unknown of. So in the long term, every % counts, and in the case of accumulating ETFs, you don’t need to worry about taxes.

1 Like
9

@Daikoku You might like to check whether accumulating ETFs are really tax free for you. It is a common misconception that holding accumulating ETFs avoids tax liability. Accumulating ETFs typically have what is called “undistributed income”; this is taxable to UK taxpayers, and I would expect similarly under other countries’ tax systems.

This article

makes the point that “The key takeaway is that accumulating/distributing status makes no difference to your income tax liabilities.”