Accumulating ETF

For accumulating ETFs, how are the dividends calculated and added into the portfolio? If say an investment of $300 into a accumulating ETF is done, with a dividend of $2, would the value of the position increase by $2 to $302?

I am not sure if I fully understand. Do you mean how StocksCafe will handle it?

Yes, how will it adjust my ETF value, on a accumulating ETF?

StocksCafe will not do anything special for that. In fact, StocksCafe do not differentiate between Stocks or ETFs. They are just listed symbols on exchanges.

I would be keen to know since I have the POSB Invest Saver.

The dividends paid out to you will not be reflected on your ETF valuation, but should be paid out to you via your respective bank account linked to your CDP.

So for example if you have 100 units of ETF priced at $3/unit, your total ETF value is $300. Your ETF valuation in the market is solely based on the number of units owned*price per unit.

Hoped that this answers your question!

1 Like