Accumulating vs distributing

Accumulating vs distributing — the two share classes of UCITS funds. Distributing classes pay dividends out as cash; accumulating classes (the “A” in VWRA) reinvest them inside the fund automatically — no payout event, no reinvestment chore, no leak. For growth money in the accumulation phase, accumulating is the standard choice; distributing suits the later stage when the portfolio’s job becomes income.

First used in: 1.6 · Cross-border plumbing