Distributing or Accumulating ETFs

Hello all

Is it me, or is Bux no longer offering accumulating ETFs anymore in Belgium?

I cannot find any accumulating ETFs anymore that I can invest in (in Belgium), only distributing ETFs. This really sucks, because, for tax purposes, the accumulating ETFs are the only ones I am interested in.

As my investment strategy is to focus mostly on (accumulating) ETFs, I am not sure if I should even stay with Bux Zero if they are not going to offer me this type of ETF. :worried:

I was told before by the Bux helpdesk that these ETFs are not offered to us in Belgium because of Belgian regulations. Someone else from Bux later told me it was a decision of BlackRock (for that specific ETF I enquired about). But I have since been in touch with BlackRock and they say as long as it is a UCITS ETF, I should be able to buy it from Belgium through Bux. So what is the story?

I would really like someone from Bux to tell me the real reason for these ETFs being blocked for Belgian customers, so I can at least decide if Bux is the right broker for me.

Or do any of you on the boards know the answer already?

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I have no idea how to answer to this but i think one guy is able to answer it, i will tag @Fergus for you. I can speculate and think about it but my knowledge does not reach that far.

I love ETF’S, right now the only thing my portfolio is made of.

One question you @yohhst might be able to answer. What is the difference between a accumulating ETF and a distributing one?

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Accumulating etf reinvest dividends automatically. So you don’t have to pay taxes on it.

Distributing etf gives you the dividend annually, quarterly or monthly. You pay taxes on the dividends and you can then reinvest it or save it for later.

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Hey @Cobalt , thanks for the reply.

Distributing ETFs will pay out the dividends (usually every quarter). Accumulating ETFs however will just reinvest the dividends in the ETF itself, so the ETF just grows that way.

The reason this is important for us Belgians is the following:

In Belgium the first 800 euro of dividends is tax exempt, so I don’t pay taxes on it. So far so good, you’d think. BUT this exemption only applies to dividends from individual stocks, not dividends from trackers/ETFs (as far as I understood). This means I get to keep less of the ETF dividends and there’s additional paperwork I need to do.

Unlike many countries, Belgium currently does not have a capital gains tax however (although some political parties want to introduce one). So if I buy all accumulating ETFs and let them grow over time, when I do sell them at their higher future value, I will not have to pay any tax here on the value difference. I believe most countries so have something like this.

Anyway, that’s the situation how I understood it (found some conflicting info here and there so if anyone from Belgium thinks I’m wrong please let me know).

So to sum up: the reason why it’s more interesting for me to have accumulating ETFs is no dividends to declare (less paperwork), no dividend tax to pay, and no capital gains tax (for now at least).

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I like to know this as well. Just found out today I can’t buy more shares of accumulating etf’s. Big bummer as a Belgian for the same reasons mentioned above. Support desk just replied the option to buy was removed. I can only hold or sell current positions. Why?

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@Fergus is anyone from Bux going to provide Belgian users with some more info on this? I feel support until now is either unable or unwilling to explain this to us… This situation doesn’t fill me with a lot of confidence as a customer, to be perfectly honest. :confused: I mean if there is a reason why Bux doesn’t want to offer this product to us, just tell us honestly. But everyone I asked at Bux until now seemed to give me a different reason (or no reason at all).

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Hi @Amphibios you can choose whether you want to hold or sell your current positions. Unfortunately, we had to remove these ETFs for our Belgian users due to regulations. This is a situation that is very unfortunate.

We are working on adding more ETFs for our Belgian investors, and I’ll make sure to keep you posted on this.

I hope that this brings more clarity to you.

Thank you for your reply. Will there be accumulating etf’s with the next addition?

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I’ll let you know first when I have more information on that!

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Hello @Fergus and @jensBUX

Is there any chance the currently blocked ETFs will be available again in Belgium in the (near) future? Is this being looked at by Bux at all?

The decision to block them kinda screwed up the investment strategy I had laid out when I started investing with Bux in May. My plan was to continually add to these accumulating ETF positions and now it’s become impossible, basically. As mentioned earlier, I have been in touch with BlackRock and they told me the ETFs can be sold in Belgium without any problems (UCITS) and it is the broker’s decision whether or not to offer them to their clients. If this is the case, could anyone tell us why Bux prefers not to sell this product in Belgium?

I’m sorry to keep going on about this, but it really is a big deal for me personally (and possibly many current and potential users in Belgium). Unfortunately I still haven’t gotten any real answer from Bux on why exactly the ETFs are blocked, apart from “due to regulations”.

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Same situation here :blush:

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@yohhst hi, I am not @Fergus or @jensBUX. it is sad that it screwed up your strategy and that you had no ‘good’ answer at all. I hope that you will get your answer, but I know they are searching for an solution! I’m not working for bux but I know that they will do anything for you and all the other people to make it available again for you guys!

It is an hard process and they are working on it, I know that for sure…

Greetz!

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Hi @Fergus, Do you have any more information on this? What accumulating etf’s are BUX working on? Thx!

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Good morning @Amphibios, I don’t have new information on this. I sent @yohhst a DM earlier this week and told him that if he sees different accumulating ETFs that are available in Belgium, we are happy to look and see if we can enable them :slight_smile:

Once again, sorry to not be able to bring better news at this point in time.

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@Amphibios @RS27 @Fergus

Is it just me, or did the accumulating ETFs become available again in Belgium? I can see them in the ETF section of the app again! :star_struck: (I did reinstall the app yesterday, so I hope it’s not a temporary glitch lol)

Should we load up quickly, or should they stay for good now? :smirk:

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Gonna wait for confirmation before I top up my account again :stuck_out_tongue_winking_eye:

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@Amphibios haha same ! :sweat_smile:

Hey guys @yohhst @Amphibios @RS27 I just double checked with the team, they should be available in the app. Enjoy :sunglasses: :brown_heart:

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This just made my day @Fergus !
Sorry for all the complaining earlier haha

Thanks for confirming!

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No worries my friend @yohhst. Glad that you are back! :hugs:

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