Questions on ETF Dividend

Hi All,

Nifty 50 ETF , when the company declared and transferred the dividend . How this will impact the ETF price

  1. After dividend - The stock price may adjust the dividend payout
    2.ETF price may reduced due to the impact of dividend adjustment in the stock price. So where does the Dividend received from each stock goes . Will the AMC share with ETF share holders or some other adjustment done in the ETF price?

It is from these dividends that is received that the AMC will take their charges and other expenses and the surplus if any will be re invested.

1 Like

Here is a link which explains the ETF and Dividend impact .

ETFs are benchmarked against the TRI variant which already accounts for the dividends,
How do AMC for an ETF adjust dividends received from the stocks that are held under the ETF - #3 by Prayag

Hi @neha1101 ,

My Understanding is that , Most of the fund house follows Nifty 50 TRI or (total return index) . This Include the dividend comp too .
The AMC charges like expense will be deducted every day when calculating the Nav (not iNav - Which updated in minutes or seconds based on the Index changes)
This What I understand from reading the details from different sources . Please correct Me , If I am wrong …