ETF Distribution Reinvestment Question

[Bosco]

Hi There, I’m just learning about managing my ETF portfolio and had a question about DRP.

I have not enabled automatic DRP so I am managing this manually (I get the cash back, and then reinvest it in my next purchase of shares).

When I click the DRP button in my shares, it creates a new transaction.

However so as not to create a double up, I think I then need to subtract the DRP unit quantity from my next batch of units/purchase.

My sharesight looks as follows… Just want to make sure I’m on the right track before I go through and adjust all my entries.

Is there a different way to do this?

Any guidance would be appreciated. Thanks!

[RickyYeo]

Hi Bosco, if you don’t have DRP with Vanguard (or your broker), you don’t need to use the reinvestment function. So every time you make a new purchase (using the money you get from dividend), you just need to forward the trade confirmation or have your broker does it for you (depends on your broker). Sharesight will just treat that as a new buy (which it is). Nothing wrong with using the reinvestment either (from tax and performance point of view, they are doing the same thing which is increase the holding cost base). But it is just easier.