Upcoming ex-distribution date: 1 Jul 2024
Upcoming record date: 2 Jul 2024
Upcoming payment date: 16 Jul 2024
ETFs, such as Vanguard Australian Fixed Interest Index ETF (VAF), pay distributions instead of dividends. The difference is that dividends are declared by companies from part of the profits made during any given year and the company’s management decide the amount of earnings retained verses how much to pay out to investors. An ETF, like Vanguard Australian Fixed Interest Index ETF (VAF), must pay out all realised income. This is a combination of any dividends received plus capital gains realised from the buying and selling of underlying holdings within Vanguard Australian Fixed Interest Index ETF (VAF).
A distribution has three key dates:
Ex-distribution date: Date the distribution value leaves the ETF. This will normally correspond with the ETF unit price dropping in value by the same amount as the distribution.
Record date: Date someone must be on the unit registry to receive the distribution.
Payment date date: Date the distribution is paid to the unit holder.