Many ETFs do pay dividends. Equity ETFs holding dividend-paying stocks, bond ETFs distributing interest income, and REIT ETFs all typically generate income for investors. How this income is handled depends on the ETF type: a distributing ETF pays it out as cash to investors on a regular schedule; an accumulating ETF automatically reinvests it back into the fund, growing the NAV instead.
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Do ETFs pay dividends?
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