How do dividend in VUAG accumulating ETF work

Hi. A few questions on this as I can’t find a simple explain answer anywhere using simple terminology / examples.

1- When exactly do they pay dividend. Not month but actually day of month.

2- How can I check on those days howmuch dividend I recived is it does not show. Can I somehow work it out?

3- In auto reinvest do they just give you more so now you have more shares? Because if I had a none accumulating then I’d reinvest them manually and then it would result in me having more shares.

4- Is there an online calculator somewhere or a formula I can use on excel to let’s say type in the amount I hold x historic vuag dividend return to see what I would have recived if I held back then what I hold now?

Looking forward to your reply thanks Meurig

It accumulates so it doesn’t pay a dividend.

Vanguard website should show ‘distributions’

No the size of the fund gets larger, so you own the same amount of shares of a large value fund

you’re looking for VUSA if you want the same fund’s distributing variant and you should see dividends flow through to yourself.

Hi, Thanks for your replies, its appreciated. Sorry for all questions, what do you mean as in size of the fund gets larger??

So If i have 800 shares at an avg price of 72.06 what goes up when they reinvest dividend for you? The 800 stays the same you say? Then where will i see the increase please

It will stay the same. You’ll see an increase in the price of the fund.

In the 72.06 you mean. Sorry what’s meant by fund?


But how does that show me my fund size or show howmuch dividend I received? I’m really not getting this sorry. Please treat me like a kid as I’m really new and have searched everywhere for this answer. Thanks

Actually, what you’re doing here is what all investors should do.


Don’t apologise for trying to better your knowledge of how the very confusing world of investing works

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You don’t receive a dividend it’s accumulating. Let’s try it this way:

Imagine a 10 inch pizza, that’s split into let’s say 8 slices. You own one of those slices. 7 other people own the other slices.

When an accumulating ETF ‘distributes’ what happens is the pizza becomes an 11 inch pizza rather than a 10 inch. You still own 1 slice and the others own 7, but your slice has gotten bigger by virtue of the overall pizza being bigger.

Now if we transcribe that back to investing terms.

The ETF Fund Size (in currency) I highlighted in the earlier post is the pizza.
A slice of pizza is simply your holding amount of the fund. So your holding amount will not change.

Here’s an image of VUSA (the distribution version of VUAG) and VUAG (the accumulating version of VUSA) running alongside each other, to prove that they move pretty much move in tandem.


Wow thanks for your much clearer explanation. So how an where can I see how my own personal slice grew by per month / year?

It’s a good question and I don’t have a full answer. The link to the HMRC forum gives a bit more background but not an answer. Tax on reinvested dividends (accumulation units) - Community Forum - GOV.UK

As the notional dividends are subject to dividend tax, it could be necessary to understand the break down of capital gains and dividend for UK tax purposes.

Better not to consider it and to look at your returns on the investment page as to how you’re doing.