The Lemon Fool

GeoffF100 wrote:The accumulating version of VEVE is VHVG. The ERI per share was $1.5567 last year. The current price is £64.76. £100K buys 1562 shares with a little left over. The ERI on 1562 shares is $2,431.57. (All the money that would have been distributed as dividends by the distributing version has to be reported as ERI.) HMRC is not likely to turn a blind eye to that.

Yes, ERI for accumulation units of ETFs is a more serious amount. That is part of why they should be avoided in my view. The comment I requoted was for distribution units.

GeoffF100 wrote:The accumulating version of VEVE is VHVG. The ERI per share was $1.5567 last year. The current price is £64.76. £100K buys 1562 shares with a little left over. The ERI on 1562 shares is $2,431.57. (All the money that would have been distributed as dividends by the distributing version has to be reported as ERI.) HMRC is not likely to turn a blind eye to that.

Which is why it is a bad idea to hold accumulating untis outside of a tax wrapper

On a practical note then either including it on the tax cert or putting a big note at the start of the "overseas dividends" section, rather than a warning about it in a small box on page 10 would be somewhat more useful. I suspect there a a lot of people who don't even know it exists.

DrFfybes wrote:

GeoffF100 wrote:The accumulating version of VEVE is VHVG. The ERI per share was $1.5567 last year. The current price is £64.76. £100K buys 1562 shares with a little left over. The ERI on 1562 shares is $2,431.57. (All the money that would have been distributed as dividends by the distributing version has to be reported as ERI.) HMRC is not likely to turn a blind eye to that.

Which is why it is a bad idea to hold accumulating untis outside of a tax wrapper

Accumulating units make the accounting more difficult for open ended funds, but easier for ETFs. For distributing ETFs you have to report both the dividends and the ERI. For accumulating ETFs you only have to report the ERI.

Having said that, I do not like accumulating funds. They avoid FX charges for reinvesting dividends, but are not helpful if you want the cash or want to reinvest in something else.

absolutezero wrote:And this is why I only hold ETFs in tax sheltered accounts!
Might be worth you finding a British Investment Trust that does a similar job.
For example, JP Morgan American (JAM) is a pretty good proxy for an S&P 500 ETF. The graphs look very VERY similar.
City of London (CTY) is a good proxy for the FTSE 100.
Not yet found one that tracks VEVE. But then again I haven't really looked.

FCIT probably as good as any.

Spet0789 wrote:

absolutezero wrote:And this is why I only hold ETFs in tax sheltered accounts!
Might be worth you finding a British Investment Trust that does a similar job.
For example, JP Morgan American (JAM) is a pretty good proxy for an S&P 500 ETF. The graphs look very VERY similar.
City of London (CTY) is a good proxy for the FTSE 100.
Not yet found one that tracks VEVE. But then again I haven't really looked.

FCIT probably as good as any.

I hold