The Vanguard Australian Shares Index ETF (ASX: VAS) is one of the most popular ways for retail (regular) investors to invest in the ASX share market. It's the biggest exchange-traded fund (ETF) in Australia.
For readers who don't know, this ETF aims to track the S&P/ASX 300 Index (ASX: XKO). This includes many of the country's biggest businesses including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Macquarie Group Ltd (ASX: MQG).
Upcoming distribution
One of the main ways that ETFs produce returns for investors is by distributing the dividend income they receive and passing it through to investors. It also pays out capital gains made on share sales made within the portfolio.
Some ETFs send out the cash they've received each quarter, which is what the Vanguard Australian Shares Index ETF does. Others may only pay every six or 12 months.
The fund provider has announced that the ETF will pay an estimated distribution of 74.66 cents per unit. Excluding franking credits, this distribution amounts to a distribution yield of 0.085% of the unit price.
When do investors need to own Vanguard Australian Shares Index ETF units?
ASX shares that pay income to investors have an entitlement date regarding who gets paid. If investors don't own shares or units before the date, they miss out on that particular payment. This is called the ex-dividend date or the ex-distribution date.
For the Vanguard Australian Shares Index ETF the ex-distribution date is 3 January 2023. The payment date is 18 January 2023.
However, with the ASX closed on 2 January 2023 because of the public holiday for New Year's Day, the last day to secure the payment is 30 December 2022, which is this Friday.
Foolish takeaway
The Vanguard Australian Shares Index ETF will pay another payment in three months, so investors won't have to wait for long for the next distribution.
