Hi
I haven’t signed up to T212 yet but i was wondering how dividend income is paid from ETFs. I’m more used to funds in my other provider and i choose income v accumulation funds depending on what i want. Can you choose whether income is paid or reinvested?
Also, I believe T212 don’t do funds - are there any plans to add these?
Thanks
Alan
i believe it depends on the type of ETF, accumulating vs distributed. you pick which you want based on whether you wish to receive the dividends or to have them go back into improving the valuation of your shares. T212 then just pays the post-tax dividend into your account funds if you choose the ETF to receive them.
That is correct, but to avoid misunderstanding, we need to realise that no taxes are withheld on ETF dividends (as they are with US company share dividends). The issuer has to pay tax before distributing income to the shareholders. With either type of ETF there can be further local income tax to pay. One must consult the web sites of the ETF provider to learn what additional nondistributed, but reportable, income has arisen.
Thanks both
I must admit, looking at the demo it isnt that straightforward to identify accumulating v distribution as it’s not always in the title and there is very limited information on each ETF
@Alan212 If you read under “Instrument details” it always says if the ETF is dist or acc.
Thanks Richard, I’ll have a look
No, I cannot see that written in my ETFs instrument details. I have iShares Stoxx Europe select dividend, and the other is Stoxx global dividend as well. This has been lurking at the back of my mind for quite a while.
Sorry, you are right. The information is missing in “Instrument details”. It. would be nice if it were fhere. Alternatively, could Google “EXSH iShares” and look here. It is distributing.
I always like to check the issuer’s website.