The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: settlement on March 15, 2017, 08:44:15 PM
-
Hi all,
In my ETF's factsheet it says
Distribution frequency: None.
Does this mean it does not pay dividends?
-
Hi all,
In my ETF's factsheet it says
Distribution frequency: None.
Does this mean it does not pay dividends?
This would normally mean the fund does not intend on paying an distributions on a regular basis. There should be more details in the prospectus regarding distribution policies. For example in what circumstances the fund would pay a distribution, if it intends to pay any distributions at all, and in what forms of income the distribution would pay.
-
The only other info I can find is that it says: use of income: accumulating
But I still thought that these would show up on my statements (there is nothing on them)
https://www.ishares.com/uk/individual/en/literature/fact-sheet/swda-ishares-core-msci-world-ucits-etf-fund-fact-sheet-en-gb.pdf
-
The only other info I can find is that it says: use of income: accumulating
But I still thought that these would show up on my statements (there is nothing on them)
https://www.ishares.com/uk/individual/en/literature/fact-sheet/swda-ishares-core-msci-world-ucits-etf-fund-fact-sheet-en-gb.pdf
I took a look at the prospectus and it confirms no distributions are intended to be made on accumulating class ETFs. Basically all income is rolled back into the fund.
Essentially you are investing in a total return type product.
-
Is the idea behind this that distributions are not declared and hence don't trigger taxable events?
-
It might be similar to this article. No, I did not look at your specific fund.
http://canadiancouchpotato.com/2017/02/17/a-new-etf-structure-for-accumulators/