GLOSSARY TERM
Accumulating ETF (ACC)
An accumulating ETF is an exchange-traded fund that keeps the dividends or interest it receives and reinvests them back into the fund instead of paying them out to investors.
What does this mean in practice?
When the companies or assets inside the ETF produce income, that money stays in the fund and is used to buy more assets. You do not receive cash payments to your account. Instead, the value of your investment can grow over time as those returns are reinvested automatically.
Example
Imagine you own an accumulating world index ETF. The companies in the fund pay dividends, but instead of sending that money to you, the ETF reinvests it. Over many years, this can help your investment grow without you having to do anything yourself.
Why it matters
For a long-term investor, an accumulating ETF can make investing simpler. It supports automatic compounding, reduces the need to reinvest cash manually and can help you stay focused on steady long-term growth.
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