*ETFs trading: countries: France, Poland, Belgium, Portugal, Netherlands, Germany, Italy, Luxembourg
Accumulating and distributing ETFs differ in how they handle dividends generated by the underlying assets:
Accumulating ETFs: Accumulating ETFs automatically reinvest any dividends paid out by the underlying assets. This means that the income generated by these ETFs is automatically reinvested in the purchase of additional shares of the ETF, increasing the overall value of your current investment.
Distributing ETFs: Distributing ETFs, on the other hand, directly distribute dividends earned from the underlying assets to investors. These ETFs make monthly, quarterly, or annual distributions to investors, depending on the ETF's distribution schedule.
To learn how to identify which ETF is accumulating or distributing on the Shares app, please see the article How to identify accumulating and distributing ETFs on Shares?