Monday 26 Feb 2024

Vanguard New Accumulation Funds

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Recently Vanguard introduced more accumulative ETFs on their platform.

Prior to this, I was invested in a global fund named Vanguard FTSE All-World UCITS ETF (VWRL) income fund. Dividends were paid out into my cash account instead of being reinvested in the fund. I would need to log in every so often and invest the surplus cash. Not easy as to buy VWRL you need to buy a whole share (£98.37 08/03/2024), unlike the Vanguard mutual funds where you can invest any amount, such as the LifeStrategy funds.

Introducing VWRP: It’s essentially the same – same amount of companies 3,665, same expense ratio 0.22%. Now the fund can grow without me manually reinvesting dividends.

Worth a switch if you are a growth investor and would happily reinvest dividends.