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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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