Any ASX dividend investor worth their salt knows all about the ex-dividend date – the date that new investors are cut off from receiving an upcoming dividend payment.
Ex-dividend dates are usually notable events. For one, they are the dividing line between who gets cash and who doesn't. But because new investors aren't eligible for a dividend after the ex-dividend date passes, the value of said dividend leaves the company's share price on the ex-dividend date. This usually results in a large share price fall.
Well, it's not just ASX shares that can trade ex-dividend. Exchange-traded funds (ETFs) can pay dividends too. And as such, ETFs have ex-dividend dates as well.
Of course, dividends from an ETF are technically called distributions. This reflects the fact that an ETF is a trust, and not a company. As such, an ETF's ex-dividend date is actually called its 'ex-distribution' date.
As we speak, two ASX ETFs are quickly approaching their next ex-distribution date.
Let's discuss them.
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2 ASX ETFs going ex-dividend next week
The first is the Vanguard FTSE All-World ex-US ETF (ASX: VEU). This ETF is a rather massive one in scope from provider Vanguard. It invests in a basket of roughly 3,500 shares hailing from countries all around the world, with the exception of the United States.
You'll find ASX shares here, as well as those from Canada, Taiwan, Japan, China, Europe, India, and the United Kingdom.
This ETF pays out dividend distributions every quarter. Its latest distribution payment is due on 20 January 2023. However, only investors who own this ETF's units on or before the ex-distribution date of 20 December (next Tuesday) will be eligible for payment.
Vanguard hasn't yet disclosed the exact amount investors can expect to see for this distribution. The final amount in Australian dollar terms will only be revealed on 16 January.
Next up we have the Vanguard US Total Market Shares Index ETF (ASX: VTS). Another ETF from Vanguard, this fund covers not just the popular S&P 500 Index (SP: .INX), but a total of 4,030 shares on the US markets. This gives investors massive diversification across large and small-cap US shares.
Although the larger names like Apple and Amazon are still dominant in this ETF, name any US public company you can think of, and it's probably in this fund too.
The Vanguard US Total Market Shares Index ETF also pays out quarterly distributions. Again, Vanguard hasn't yet disclosed exactly how much investors can expect to be paid out yet. However, we do know that the next distribution date for this ETF will be on 25 January 2023.
Investors have until the ex-distribution date on 23 December to buy units of this ETF if they wish to receive this payment. The final amount in Aussie dollars will then be disclosed on 19 January next year.
