Accumulating vs Distributing ETFs in Europe (2025)

[@jacobsonaugustus152]

January 1, 2025. Subscribed to your channel and already getting loads of Value. Thank you and Happy New Year!

[@kostasbatsioras2307]

Good morning

[@merdzanmerdzanovski4274]

I am from Croatia and i did not invest at all. I am interetest to invest in etfs in Europe and hold for long time. What is the best broker app to use for invest in Etfs. Ty for help.

[@abladao]

There are many here in Europe. I, for example, use Interactive Brokers. Mostly because is more broadly used around the world, so for me is better in case I move out of Europe. But there are many others like degyro and others.

[@paulopinheiro7550]

Trading 212, Degiro, IBKR, XTB, etc. Beware of the location of the company, the fees, deposit garantees, among others. I was using Degiro but for regular small buys the 1-3€ buy and sell fees quickly escalate to a lot of money, so now I use Trading 212 which is free, and you can buy fractional shares/ETFs (nice for small regular buys). Plus, any uninvested money is in QMMFs (if you so choose, not mandatory) and getting 3.4% (EUR) interest/year, paid daily, I think.

[@euclid9718]

Who can give a guarantee that in case of an accumulating etf the dividends are actually reinvested, but not stolen by fund managers?

[@Mr_Stone1]

1) You can compare past results of the accumulative version with the dividend version on a tool like justetf. Normally, acc should edge out a little bit. 2) Funds have annual statements and financial companies are regulated and controlled by financial authorities. They are your guarantee of prosecution and the location of your fund and broker matter in this regard. 3) Check the fund costs and also if they are visible when you compare two funds following the same index. Keeping your costs low also decreases the budget where fraud or waste could happen undetected.

[@thetomcrosshill]

Thanks for chiming in, Mr_Stone1! With funds, you do have to trust the checks and balances of all the oversight offered by the fund depositary, regulators, auditors, institutional investors, etc. You can check a few things but reconciling the data fully will not be feasible for private investors. The risk is never zero, but an issue in this area would be catastrophic for any fund manager and seems very unlikely for big reputable providers.