Not all indeed but it seems to be the best option to minimize them.
So, I will certainly go with VT (0.07% TER)…
No, you don’t minimize them with an accumulating ETF. You pay exactly the same amount of taxes as if the fund would be distributing. The tax authoritirs use the accumulated amount and treat it as a dividend for tax purposes.
But is it better or not to use US based ETF anyway ? Or just return to my Yuh app and buy their blue chips ETF world hedged ?
Thanks for your help.
As has been mentioned already, there is virtually no performance difference between distributing and accumulating share classes of the same ETF as long as you reinvest the dividends within a reasonable time frame. The only points you have to watch out for are potential currency exchange fees and additional trading fees. Neither should be a concern if you use IBKR and reinvest dividends together with your next monthly trade.
Decide first whether you want a hedged ETF. Unlike the distributing vs. accumulating aspect, hedging may significantly affect performance. As far as I can tell, most people here advise against hedging equity ETFs. Search the forum if you’re interested in the discussion.
If you’re not buying a hedged ETF, decide next whether you want VT or rather a UCITS ETF such as VWRL. Check previous discussions about this topic in the forum.
Yuh is generally much more expensive than IBKR (and the ETF selection is very limited), although Yuh might be better in some cases when investing relatively small amounts.
In my opinion, only when the other factors are clear, you should decide whether you want to buy the accumulating share class (if available), enable automatic dividend reinvestment, or reinvest dividends together with your next monthly trade for maximum flexibility.
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Thank you !
I have found an interesting article on Mustachian.