I haven't received any dividends from my ETFs like I do from mutual funds. What happens to the dividends they receive from underlying companies?
- AK Malik
Most ETFs reinvest the dividend proceeds that they get from the underlying securities. In India per se, there are very few ETFs that have a history of paying dividends and the ones that do, the mechanics are pretty similar to the way a dividend is distributed in the case of a stock. Typically, they announce a record date and the investors who are invested in the ETF on the record date, would be eligible to get those dividends.
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