Do ETFs pay dividends?
Hey everyone,
I have very a simple question, and for some reason I haven't yet been able to find a conclusive answer. Hopefully I can get it here:
For an ETF like VCN, are dividends paid out to the investors, or somehow re-invested in the ETF?
When I look at VCN, I can clearly see a yield and a dividend schedule - should I expect to receive dividend payments from the ETF quarterly, or do they get somehow re-invested and contribute to the growth of the ETF?
Posted Mar 2, 2015, 4:33 PM UTC
14
Yes, I receive quarterly dividends from VCN the exact same as common stock that pays dividends.
If you were looking to have them reinvested, I would imagine you could setup DRIP program with your brokerage to have them reinvested automatically.
Thank you!