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Distribution ETFs paying dividends in sterling

Index tracking funds and ETFs
deltrotter
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Distribution ETFs paying dividends in sterling

#392511

Postby deltrotter » March 4th, 2021, 10:32 pm

Hi everyone

Anyone got suggestions for large, fairly global trackers that pay their dividends in sterling?

Could be all world, developed world etc...

TIA

Del

JohnB
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Re: Distribution ETFs paying dividends in sterling

#392534

Postby JohnB » March 4th, 2021, 11:34 pm

VUSA, CSP1, HMEF

mc2fool
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Re: Distribution ETFs paying dividends in sterling

#392541

Postby mc2fool » March 5th, 2021, 12:05 am

JohnB wrote:VUSA, CSP1, HMEF

VUSA and CSP1 are just S&P 500 ETFs and HFEM is just an emerging markets one.

VUSA dividends are paid in USD (as are all USD based Vanguard ETFs, even if priced in GBP), and CSP1 is an accumulation ETF so doesn't pay any dividends. ;)

hiriskpaul
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Re: Distribution ETFs paying dividends in sterling

#392641

Postby hiriskpaul » March 5th, 2021, 10:34 am

You need an OEIC for that, not an ETF. Fidelity World Index tracks MSCI World for 0.12%, but is developed World only. HSBC FTSE All-World includes emerging markets, but is more expensive at 0.19%. Plenty of other options, but AFAIK these are the cheapest World tracker OEICs at present.

deltrotter
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Re: Distribution ETFs paying dividends in sterling

#392657

Postby deltrotter » March 5th, 2021, 10:53 am

Thanks hiriskpaul - appreciated.

Cheers

Del

daveh
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Re: Distribution ETFs paying dividends in sterling

#392701

Postby daveh » March 5th, 2021, 12:29 pm

For me VWRL dividend, though quoted in dollars, is immediately converted into sterling at both II and HSDL, but that is because it is held in an ISA and ISA's can't hold foreign currency. So one way round your problem of dividends being paid to your account in dollars is to buy in an ISA if that is available to you. It also solves the tax return problem of where to put it (with normal divis or foreign divis). I try and hold all the complicated things like ETFs that pay in FX or that are not UK domiciled etc in my ISAs to reduce those complications and limit the taxable account to simpler holdings.

deltrotter
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Re: Distribution ETFs paying dividends in sterling

#392706

Postby deltrotter » March 5th, 2021, 12:38 pm

Hi Dave

Yup, trying to really simplify things.

I am going to go for funds in this instance to get the divi's in £ in my trading account.

I'll have to wash them (hopefully) each year for CGT and that means being out of the market a couple of days as trading these is slower than ETFs...

Cheers

Del

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Re: Distribution ETFs paying dividends in sterling

#392711

Postby JohnB » March 5th, 2021, 12:42 pm

HL pays all my dividends from CSP1, VUSA etc in Sterling, if there are currency conversion charges involved I don't see them. I report them as foreign income on my tax return, but that seems to make no difference to the tax calculation. The much reduced custody charges for ETFs over funds/OEICs on that platform makes them more attractive to me.

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Re: Distribution ETFs paying dividends in sterling

#392734

Postby daveh » March 5th, 2021, 1:33 pm

deltrotter wrote:Hi Dave

Yup, trying to really simplify things.

I am going to go for funds in this instance to get the divi's in £ in my trading account.

I'll have to wash them (hopefully) each year for CGT and that means being out of the market a couple of days as trading these is slower than ETFs...

Cheers

Del

Presumably out of the market 31 days to avoid the 30 days rule or are you planning on selling one fund and buying a different fund that invests in the same thing. Eg sell one FTSE 100 tracker fund and buy a different FTSE 100 tracker fund (from a different 'manufacturer')?

deltrotter
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Re: Distribution ETFs paying dividends in sterling

#392738

Postby deltrotter » March 5th, 2021, 1:39 pm

Hi Dave

Yup, exactly....

I may not find exact pairs but close is good enough.

Cheers

Del

mc2fool
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Re: Distribution ETFs paying dividends in sterling

#392749

Postby mc2fool » March 5th, 2021, 2:00 pm

JohnB wrote:HL pays all my dividends from CSP1...

As already pointed out, CSP1 is the GBP class of an accumulation ETF, so you don't get any dividends from it!

https://www.ishares.com/uk/individual/en/products/253743/ishares-sp-500-b-ucits-etf-acc-fund

Of course, you still have to declare the nominal dividends accumulated up (and eventually take them into account for CGT purposes) and you should do so converting the USD amount into GBP using either an official exchange rate of HMRC's exchange rate (not the GBP amount you nominally received, as that'll be after whatever currency exchange commission/fees are applied.


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