What's the difference ETFs' world

đź“Š Investing
1

Hi guys, thanks for all your messages I am learning a lot. Everyday my portfolio looks stronger and ready for the long term.

I have a question though. In my research for ETFs I don’t really understand what is the difference but the currency between some and I’d like some clarification.

VUSA
IUSA
VUAA

What’s the difference? Having in mind I am not from the UK and I do Euros… Which one of these three make more sense for someone like me?

Another question: This one is the same but it is hedged, right? IUSE. Which means that I am “protected against currency impact” is this correct? But the anual cost is more expensive as well. I am lost. So is it really worthy?

Thanks for your help.

2

VUSA and IUSA track the same basically and are distributed so they pay dividends separately.

V for Vanguard, I for iShares which provide the index.

The VUAA is accumulating so the dividends are reinvested back in automatically.

With any ETF it’s worth looking at the holdings it tracks.

https://finance.yahoo.com/quote/VUSA.L/holdings/

https://finance.yahoo.com/quote/IUSA.L/holdings/

https://finance.yahoo.com/quote/VUAA.L/holdings/

3

What I meant is. If one is in GBP and the other one in EUR… Makes more sense buy positions in the EUR so I won’t be affected by GPB exchange in the future, right?

4

Distributed
VUSA is in pounds (GBP)
VUSD is in dollars (USD)
IUSA is in pence (GBX)

Accumulating
VUAG is in pounds (GBP)
VUAA is dollars (USD)

5

It appears in EUR

Screenshot_20201225-101226
Screenshot_20201225-1012261080Ă—1920 171 KB

6

Is it better distributed or accumulated for long term? I mean if it is distributing I may have an extra income in the future. But if it is accumulating how do you do when retired? Sell a little bit each month?

7

It’s that the ticker is shared across exchanges in EUR and I think Mexican pesos.

If you see instrument details the one you screengrabed is the Euronext Amsterdam.

Screenshot_20201225-152023
Screenshot_20201225-152023760Ă—672 68.8 KB

The only difference with dist and acc is that with dist it’s then your choice each dividend payout whether or not to reinvest or use the cash elsewhere.

8

Gotcha. So basically they are the same. The only difference by buying the one in Euros is that I won’t be affected by the GBP in the future.

9

Screenshot_20200330-162414_Opera
Screenshot_20200330-162414_Opera1064Ă—831 180 KB
Screenshot_20200411-095648_Opera
Screenshot_20200411-095648_Opera1079Ă—1582 229 KB
Screenshot_20200411-095545_Opera
Screenshot_20200411-095545_Opera1080Ă—1244 243 KB

10

Distributed vs Accumulated depends on your local country laws.

Some countries don’t tax Accumulated for their reinvested dividend. Thus folks from those countries benefit less taxing.

Otherwise if it is taxable, not much difference in terms of returns.

11

Income funds: Pay any profits to your nominated bank account. This means that you can withdraw the money as an alternative income. Accumulation funds: Are designed to generate growth rather than income. Your profits are automatically reinvested to buy more shares in the fund.12 Feb 2019

This is the general definition not sure about your above investment