0

VUSA (IE00B3XXRP09) and VUAA (IE00BFMXXD54) should both be equally "good". VUAA is for you if you want to automatically reinvest its dividends. I get that...

Nevertheless, if I look at their charts, VUAA (IE00BFMXXD54), since its inception on 14 May 2019, has always performed equal/worse than VUSA (IE00B3XXRP09).

My question is where are the dividends going that should be reinvested by the accumulating VUAA (IE00BFMXXD54). According to my logic, if VUAA (IE00BFMXXD54) reinvests its dividends it should outperform its distributing counterpart VUSA (IE00B3XXRP09).

Since VUAA doesn't outperform VUSA, it looks like VUAA is definitely worse?

Edit 1 (added direct Screenshots from comparison between the 2 ETFs from https://www.justetf.com): comparison_screenshot1 comparison_screenshot2

Edit 2: corrected inception date of VUAA, thanks to @Flux

Improve this question
3
  • Could you show us your data and calculations? I could not reproduce your claims.
    – Flux
    Mar 5, 2022 at 13:52
  • VUAA's date of inception is 2019-05-14.
    – Flux
    Mar 5, 2022 at 13:54
  • @Flux thank you for your reply. I have added 2 screenshots from a direct comparison between IE00BFMXXD54 and IE00B3XXRP09 using the comparison feature from justetf.com
    – Tridelt
    Mar 5, 2022 at 14:28

1 Answer 1

Reset to default
3

It is because the comparator takes into account the fact that you reinvest your dividends in the ETF each time. To see the difference, you can go to the ETF in question on justETF (e.g. IE00B3XXRP09), and at the bottom of the page there is also a comparison chart. In this case "Performance chart of Vanguard S&P 500 UCITS ETF". But here you can choose if you want or not "Including Dividends". If you add another ETF in the "Benchmarck comparison", for example IE00BFMXXD54, you will see that there is a difference between Distributing & Accumulating. You also see that the difference increases with each dividend payment period.

Edit : added comparison chart between the 2 ETFs Vanguard S&P 500 Distributing & Accumulating (from https://www.justetf.com)

enter image description here

Improve this answer
2
  • Your answer could be improved with additional supporting information. Please edit to add further details, such as citations or documentation, so that others can confirm that your answer is correct. You can find more information on how to write good answers in the help center.
    – Community Bot
    Sep 1, 2022 at 3:13
  • Please add links and screenshots to make your answer self-contained. That third-party webpage is not guaranteed to stay up.
    – Flux
    Sep 1, 2022 at 3:14

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .