Tracker with dividends?

Feb 20, 2008 2 Replies

Hello,



I curently invest in L & G trackers - the UK and the Europeans. Am I right in assuming these trackers do not benefit from dividends the companies represented in the trackers pay? Are there any trackers that do?



Thanks



Ray


I would assume that the dividends are reinvested by the fund.

iShares e.g.

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dividends. Most recently a 2.45 p/share dividend. Tim.

The accumulation versions of these funds do indeed reinvest the dividends by buying more units. However they do send you note twice a year saying how much the dividend was. You need this for your tax return since the dividends are taxed as income.but the capital growth is taxed as a capital gain when you sell.

L+G's fees are, I believe, very low, especially for the UK trackers.

Robert

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