Optimum time to sell a fund (vs. ETF) for divi
Posted: March 9th, 2024, 9:53 am
So, i have a few VWRL (ETF) and also FTSE Global All Cap (fund) in an ISA.
I know that VWRL pays a divi four times a year and that FTSE Global All Cap 'once a year' at calendar year end. (Yes, i appreciate that the fund is an Acc and that the 'divi' is automatically reinvested so that i don't get it as an explicit cash payment to me, whereas VWRL pays out cash each quarter).
Now, the next VWRL ex divi date is 14th March 2024 and i know that if i sell VWRL before then, then i will lose the forthcoming divi already declared; i also know that if i sell VWRL say on 16th March i should receive divi for the number of units sold. If i was to sell before 14th March, then effectively for this calendar year i'll only receive three divi pay outs (summer, autumn, winter) and the spring divi is not received ie effectively lost.
What about the FTSE Global All Cap fund though? What happens to any 'notional divis' if i sell throughout the year? Or is it that the divis are always reinvested as we progress throughout the year so there i don't miss out, as it were?
The reason i ask is that i have some of each in an ISA and am wondering what the pros and cons are of selling the ETF over the fund or vice versa depending on time of year and divi schedule? I'd like to take some money out of the ISA by selling some of one of the holdings.
Is there an optimal strategy to maximise gains?
TIA.
I know that VWRL pays a divi four times a year and that FTSE Global All Cap 'once a year' at calendar year end. (Yes, i appreciate that the fund is an Acc and that the 'divi' is automatically reinvested so that i don't get it as an explicit cash payment to me, whereas VWRL pays out cash each quarter).
Now, the next VWRL ex divi date is 14th March 2024 and i know that if i sell VWRL before then, then i will lose the forthcoming divi already declared; i also know that if i sell VWRL say on 16th March i should receive divi for the number of units sold. If i was to sell before 14th March, then effectively for this calendar year i'll only receive three divi pay outs (summer, autumn, winter) and the spring divi is not received ie effectively lost.
What about the FTSE Global All Cap fund though? What happens to any 'notional divis' if i sell throughout the year? Or is it that the divis are always reinvested as we progress throughout the year so there i don't miss out, as it were?
The reason i ask is that i have some of each in an ISA and am wondering what the pros and cons are of selling the ETF over the fund or vice versa depending on time of year and divi schedule? I'd like to take some money out of the ISA by selling some of one of the holdings.
Is there an optimal strategy to maximise gains?
TIA.