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.
STW distributes semi-annually; IEU semi-annually; and VEU quarterly.
Question 2: I have an SMSF and I am not happy with the fees I am charged by my accountant when he submits my tax returns to the ATO. Please give me an indicator of what the average cost is, including the audit fee.
Answer 2: It depends a little bit on the complexity of the fund and investments (for example, more expensive if you have unlisted investments or property; and can be more expensive if you have members in both pension and accumulation), however typically $2,000 to $3,000.
Audit fees are usually separate – around $500 to $800.
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