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Accumulating vs dividend paying ETF?

  • 08-06-2015 6:11pm
    #1
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭


    Im considering starting to buy ETFs from Keytrade. I have taken note of the following two all world ETFs:

    Provider | Exchange | Ticker | TER | Dividend | Index tracked
    Vanguard | Brussels | VEVE | 0.18 | Quarterly | FTSE Developed Index
    Blackrock | Brussels | IWDE | 0.55 | N/A | MSCI World Index(SM)

    I realise all about the 8 year rules etc. What I'm wondering about is whether it would be more advantageous to buy the fund with lower TER but with dividends (on which I must pay tax) or the fund with higher TER but auto accumulating of dividends?

    The re-investing one means I wont have the hassle of the tax return (for at least 8 years anyway), and ill get dividends re-invested without paying tax and broker fees. However, I'm wondering would the .37% saved (.55% minus .18%) on TER offset this in the long run?

    Anyone have a good calculator for this?
    Thanks


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