Do ETFs pay dividends?
Some ETFs pay dividends and some do not. Managers of individual ETFs decide if and/or when an ETF pays dividends.
Usually ETFs pay dividends depending on if:
- The companies within the fund are also paying dividends
- The prospectus (AKA objective) of the ETF is to generate income for investors through dividends
Checking the fund’s website can give you more information about whether a specific ETF might pay dividends.
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