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Learning, Sharing, and Teaching => Investor Alley => Topic started by: fund4tomorrow on December 24, 2020, 02:06:01 PM

Title: Does XLV have distributions outside of dividends?
Post by: fund4tomorrow on December 24, 2020, 02:06:01 PM

Hey All,

I have been trying to figure out if XLV (Health Care Select Sector SPDR Fund) has distributions besides any dividend payouts?  I'm looking to invest a little more of my savings into this sector on the premise that a few of their top ten holdings have vaccines/treatments, testing, etc. involvement with Covid. 

I know with Vanguard funds they usually post their distributions, which show they are tax efficient.  I do not mind the dividends, but am not looking to get into something that has a history of making distributions.  I believe that Vanguard uses a method to reduce tax liabilities.  I'd like to see if XLV and perhaps SPDR funds follow suit as well.

I would greatly appreciate if anyone could help me figure this out,

Thanks and Happy Holidays

Title: Re: Does XLV have distributions outside of dividends?
Post by: bacchi on December 24, 2020, 07:33:57 PM

VHT is attached to VGHCX.

Title: Re: Does XLV have distributions outside of dividends?
Post by: MustacheAndaHalf on December 25, 2020, 08:52:23 AM

"All funds are legally required to distribute their accumulated dividends at least once a year."
https://www.investopedia.com/articles/investing/082415/how-mutual-funds-pay-dividends-overview.asp

If you look through all 60 health care ETFs, you might find some with lower dividends.
https://etfdb.com/etf/RYH/#etf-ticker-valuation-dividend

I found this equal weight ETF with 0.20% dividends.  Most funds / ETFs are market cap weighted, so this ETF may perform very differently than others:
https://etfdb.com/etf/RYH/#etf-ticker-valuation-dividend

On that page, click the "dividend & valuation" link on the left, and you can see the details for that ETF.  Using the same approach, you find something better.

Of the market weighted ETFs, Vanguard's VHT seemed to have the lowest at 1.22%
https://etfdb.com/etf/VHT/#etf-ticker-valuation-dividend

Title: Re: Does XLV have distributions outside of dividends?
Post by: fund4tomorrow on December 27, 2020, 12:58:44 PM

Thank you both for replying.  This has been incredibly helpful.  Happy New Year.