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For most major ETFs there are accumulating versions that automatically re-invest any dividends into the ETF. A good choice for the lazy investor IMO.
by cehrlich 5y ago
For most major ETFs there are accumulating versions that automatically re-invest any dividends into the ETF. A good choice for the lazy investor IMO.
- lisper 5y agoYou still have to pay taxes on those dividends in the year they are paid.
- klipt 5y agoIn America, yes. The person you're replying to seems to live in Europe. I believe in many European countries there's no tax on accumulating ETFs that reinvest dividends, until you sell them and realize the capital gain. In a way this erases the tax efficiency difference between dividends and buybacks.