Is there any difference in the dividend yield between the ASX 200 ETF products on the ASX?
Also, is there any risk to your capital with these ETF products if the fund that holds them gets into financial difficulty?
Thanks.
A: Thanks for the question.
If the ETF is well managed, the dividend yield should very closely approximate the actual dividend yield of the ASX 200 – so between ETFs trying to do the same thing, there shouldn’t be any difference.
The fund that manages the ETF comes under the supervisory jurisdiction of ASIC. Further, given that it is an unleveraged fund, it shouldn’t get into financial difficulty. If the ETF is investing in vanilla securities like the ASX 200, then I don’t think you should have too many concerns.
Regards
