Does the XJO pay dividends? - Aussie Stock Forums

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  1. #1

    Default Does the XJO pay dividends?

    So I play the XJO or AUSSIE200 under CFDs with CMC. I find that they charge debits if I hold a short position, and when I queried them, they say these debits are for corporate actions like dividends. Obviously, the index itself doesn't pay divs but the companies in the index might, so it seems to make sense.

    My question is, do indices pay dividends? For the experienced traders here, is what I'm saying pretty normal? How about the SPI? Does that pay divs? Just curious.

  2. #2
    rozella rozella's Avatar
    Join Date
    Nov 2004
    NSW Far South Coast

    Default Re: Does the XJO pay dividends?

    If you want dividends from the XJO, then it is worth checking out STW

    SPDR S&P/ASX 200 Fund (STW, formerly Street TRACKS S&P/ASX 200 Fund) is an
    investment fund that tracks one of the three chosen S&P/ASX Indexes. The
    responsible entity for the fund is State Street Global Advisers, Australia
    Services Limited.

    INVESTMENT STRATEGY: STW employs a passive management strategy designed to track
    the performance of the corresponding Index. A Fund generally invests in the
    securities comprising the Index in proportion to their relative weightings in
    the Index. The Investment Manager may cause the Funds to hold derivatives
    contracts from time to time (e.g. futures contracts and options over securities
    comprising the relevant Index) and other investments that do not form part of
    the Index. This may occur where the Investment Manager believes that a Fundís
    investment objective can better be achieved by doing so. For example,
    derivatives may be used where direct investment in a particular security is not
    possible or practical. Derivatives will only be used in limited circumstances
    and will not be used to gear the Funds. All of the Funds may engage in
    securities lending from time to time. Three funds available are SPDR 50 (tracks
    S&P/ASX 50 Index), SPDR 200 (tracks S&P/ASX 200 Index) and SPDR LPF (tracks
    S&P/ASX 200 Listed Property Trust Index).

  3. #3
    Can be found on the bid Trembling Hand's Avatar
    Join Date
    Jun 2007

    Default Re: Does the XJO pay dividends?

    Quote Originally Posted by Woroni View Post
    My question is, do indices pay dividends? For the experienced traders here, is what I'm saying pretty normal? How about the SPI? Does that pay divs? Just curious.
    It is normal for a CFD index.

    With Futures fair value calculation will price in dividends up to expiry. So no you don't get or pay divs from a Fut.
    Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? -Hunter S. Thompson

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