VDHG & Micro (diversify & chill) accounts

Hi Hugo, welcome and congrats on getting started!

It’s a good question. Here’s a few thoughts…

Both of these funds are the same investment (VDHG). The only reason they move differently, I believe, is because of the way they are tracked and managed. From memory, the unit price of micro funds are not exactly like market prices like the underlying fund VDHG is (someone from Pearler would be able to explain it better than me!). Micro also does not pay out dividends, but the money stays inside the fund and is reinvested into more units.

For these reasons, I wouldn’t choose one over the other based on performance, because over time the total returns will work out to be the same. The main reason for choosing one over the other could be fees (VDHG directly has no additional fees), or simplicity (you like investing small amounts with Micro and it saves on brokerage), or whether you want the actually receive the dividends to your account to invest elsewhere or use for something else.

Having said that, I don’t think there’s anything really wrong with leaving it the way it is. They’re the same investment at the end of the day and will achieve roughly the same outcome, but the functionality and the mechanics of how they work is a little different.

Hope these thoughts are useful :)
Dave