3

I’m currently investing in numerous index ETFs such as QQQ, VOO, DÍA etc. using IBKR.

  • I have chosen automatic dividend reinvestment in IBKR settings for all my ETFs
  • However non of the dividends were reinvested this year I guess because the dividend is not enough to buy one whole share and IBKR does not allow fraction share

My question is:

  • What is the best way for me to reinvest those dividends? (E.g., should I keep a personal log of dividends and wait until I have enough to buy one whole share, then buy it manually? Are there better ways?)

Thanks!

1 Answer 1

2

Yes, I think that if you want to reinvest only/exactly the dividends you're probably going to have to do that yourself.

One way to simplify that might be to set up a separate account the dividends come into, with whatever minimum balance the bank requires, and purchase from that account whenever its contents reach a value that lets you do so without going below the minimum balance. That would avoid having to manually track the total un-reinvested dividends.

Alternatively, periodically look at your overall investment balance and invest those funds in whichever category is farthest below it's intended percentage -- a partial rebalancing by deposit, which is a good alternative to simply reinvesting in the same asset.

You must log in to answer this question.

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