Question: I have been reading your articles on ETFs and my question is, do they pay dividends? I can see that the SPDR S&P/ASX200 (STW) pays a 4.23% return and assume the dividend is paid every six months. I can’t find any information for Vanguard All-World (VEU) or iShares Europe (IEU), do these two pay dividends? How do I find whether an ETF pays a dividend or not?
Answer (By Paul Rickard): Yes, they pay distributions. As an effective trust structure, they distribute in full (pass through) any dividends they receive.