Please see the screenshot. In my research of a bunch of ETFs to add to my portfolio I’ve come with a couple of questions.
I believe the difference between the second and the third ETFs on the screenshot shot is that one is accumulate dividends and the other one distribute them. But what’s the difference with the top one?
Is there any alternative for a s&p500 vanguard or iShares to buy in Euros? At the end of the day I don’t want to be affected either + or - by the FX impact.
VUSA and VUSD are the same. One is in USD the other in GBP. Buying either will have the same outcome as the GBP version still holds USD as it’s underlying asset.
The difference in Vanguard vs iShares will be when they rebalance and how they manage the fund overall vs the S&P500. This is known as tracking error. Fees might also be different.
Ultimately no matter what currency ETF you buy, unless it is specifically a currency hedged ETF, it should return the same as it’s other currency counterparts. i.e VUSD & VUSA
The “Distributing” pays dividends, the “Accumulating” reinvests dividends in the value.
Here is a great website to check out - use their ETF screener to toggle between different ETFs and compare the similarities and differences.
The main take away - is ideally buy an ETF with your currency, ie: GBP.
Look for ETFs with big fund size (ie: they manage a lot of money, hence are not going away anytime soon).
ETF fees and expenses - these fees are annualised fees which get taken out of the stock price on a daily basis.