Question: I have been reading your articles on ETFs and my question is, do they pay dividends? I can see that the SPDR S&P/ASX200 (STW) pays a 4.23% return and assume the dividend is paid every six months. I can’t find any information for Vanguard All-World (VEU) or iShares Europe (IEU), do these two pay dividends? How do I find whether an ETF pays a dividend or not?
Answer (By Paul Rickard): Yes, they pay distributions. As an effective trust structure, they distribute in full (pass through) any dividends they receive.
Check the issuers’ websites (for example: www.ishares.com.au; www.vanguard.com.au; www.spdr.com.au)
STW distributes semi-annually; IEU semi-annually; and VEU quarterly.
Question 2: I have an SMSF and I am not happy with the fees I am charged by my accountant when he submits my tax returns to the ATO. Please give me an indicator of what the average cost is, including the audit fee.
Answer 2: It depends a little bit on the complexity of the fund and investments (for example, more expensive if you have unlisted investments or property; and can be more expensive if you have members in both pension and accumulation), however typically $2,000 to $3,000.
Audit fees are usually separate – around $500 to $800.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
