How do accumulating ETFs actually work?

An ETF may receive dividends or interests from its holdings (e.g., companies, bonds, etc.). Distributing ETFs distribute that income by paying out dividends to investors. Accumulating ETFs reinvest that income within the fund and don’t pay out dividends. It sounds simple but accumulating ETFs cause a lot of confusion. Many don’t understand how they work […]

Focus on what matters first

A few decisions have the most significant impact on being a successful index investor. Yet, many spend little time thinking about these crucial topics. Starting with investing requires making so many decisions that it is easy to get distracted by superficial things. These trivial things may lead you to think you are making progress, despite […]

Tax advantages of accumulating and distributing funds across Europe

Choosing between accumulating or distributing funds is among the first choices investors in Europe make. The appropriate option may reduce your (tax) costs and increase your returns. This post explains how to understand which dividend distribution policy leads to lower taxes using examples of specific countries. My previous post on the topic explains that the choice boils […]