VUSA (Dist) vs. VUAG (Accu) in detail

📊 Investing
1

Hello,

I understand the difference between Acc and Dist funds, but I’m curious why VUAG is so highly recommended on T212’s subreddit whenever new investors mention VUSA with automatic dividend reinvestment.

To my understanding, the only difference is the spread cost. Both have an OCF of 0.07%, but the spread can vary slightly. For example, VUSA recently had a spread of 0.08% vs. VUAG’s 0.07%. Assuming automatic dividend reinvestment (but not at the same time as monthly direct debit investments) and using a high dividend yield of 5.88% for a worst-case scenario, VUSA would incur 16 spreads/year vs. 12 for VUAG. For a £10k annual investment, this difference amounts to around £1.47/year in favour of VUAG.

I know this level of detail might be overthinking for an ETF, but I wonder if my calculations correct, why is VUAG generally preferred despite the small difference?

2

A difference of 0.01% sin the spread can simply be timing and I would consider immaterial.

It might also be because some like dividends, or reducing capital gains / simplifying tax reporting. Between capital and income if the etf pays out income.

I used to prefer VWRL over VWRP, but the spread has tightened on the latter they’re practicallly the same now.