ETFs and dividends

Are there many ASX listed ETFs that pay dividends, and do they pay them in cash or with more shares?

I'd be interested in finding out about any ETFs with good capital growth and dividend yields.

Any suggestions?

stockGURU said:

Are there many ASX listed ETFs that pay dividends, and do they pay them in cash or with more shares?

I'd be interested in finding out about any ETFs with good capital growth and dividend yields.

Any suggestions?

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I assumed that EFT as index funds matched the market so any capital growth depends on market movement, which can also go down and down and down.

As for income, many do pay out and depending on the prospectus reinvestment is possible. Just be aware that in the case of payment many are not like companies. They pay distributions which are to be declared in your tax return in the year in which they accrue unlike dividends when you declare them in the year in which they are received.

Here are two links to the ASX web-site.

The first is the product list of managed funds on the ASX. It may seem blank page initially but scroll down to ETP.

http://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm#ETF

The second is to a market update on them. Don't know what it actually contains as I don't read the stuff.

http://www.asx.com.au/products/managed-funds/market-update.htm

An ETF trades exactly like a stock does on the trading exchange, expect that the investment is made into a portfolio of securities. There could be as little as 20 or 30 different stocks within the ETF, or even hundreds. Right off the bat, a key advantage is that the investment is diversified among different stocks and sectors.

Before going out and purchasing a dividend ETF, I would recommend considering a few things first. The first would be the holdings within the ETF and the percentage of the positions. These is important because an ETF could have a large position in one stock, which could negatively affect your overall future returns.