ETF - trying to understand... case study.... accumulating vs distributing

#1

Hello Mustachians,
Long time reader, first time poster.

I wanted to clarify with you guys a couple of things regarding portfolio.

I have over 150k invested in ETFs on DeGiro and more precisely:

  • 120k invested in iShares Core MSCI World UCITS ETF (IE00B4L5Y983 - IWDA on London Stock Exchange) - accumulating, TER 0.20%
  • 30k invested in iShares EURO STX50 (IE0008471009 - EUEA on Amsterdam Stock Exchange) - distributing, TER 0.10%

Now the world etf is an accumulating ETF and the Euro50 is distributing and I have to say that I like the idea of distributing ETFs, getting that dividend makes me smile every time and seems that the money is real.

Therefore I’ve been looking to move that World ETF to something else that’s also World but distributing. HSBC seems to have exactly the same MSCI world index but at lower TER (0.15% vs 0.20%) and it’s distributing. - here the details

Looking at the return rates it seems that it’s a much better deal, the returns seem to be exactly as my iShares world etf but there’s the additional dividend. So it seems much better. With the distributing I’d be getting a bit over 2000 CHF in dividends.

Am I not understanding something here?
Any chance somebody could help me out here?
Does moving it make sense ?

#2

Did you check if the returns were total return for both (in which case yes, you’d expect them to be similar).

If you really want dividend, US-domiciled ETFs are all distributing (and have usually lower costs).

#3

You are right, the returns are total for both of them, therefore as far as I understand there’s no major difference and one is just a bit cheaper.

#4

But on Degiro he cannot purchase those, I believe.

#5

I could see myself moving to interactive brokers. Degiro seemed cheap when I had little money invested.

#6

What are you doing with that “real” money coming in?

Re-investing? Consumption?