Investors of all ages have been known to snap up the Vanguard Australian Shares Index ETF (ASX: VAS) for its broad exposure to the S&P/ASX 300 Index (ASX: XKO), as well as its dividends.
But you better get your skates on if you want a share of its upcoming payout. The exchange-traded fund (ETF) will trade ex-dividend on Monday.
That means, in order to get a piece of its upcoming quarterly offering, not-yet-investors need to jump on board today.
Units in the Vanguard Australian Shares Index ETF closed Thursday's session at $89.05.
Let's take a closer look at the ETF icon's upcoming payment.
Image source: Getty Images
Vanguard Australian Shares Index ETF to trade ex-divided
Those invested in the Vanguard Australian Shares Index ETF have likely been pretty happy with their position so far this year. The fund has gained 3.8% year to date – roughly 1.3% more than the S&P/ASX 200 Index (ASX: XJO) has risen.
And that's before considering the dividends.
It paid out 74.97 cents in January and is on track to pay an estimated 57.7 cents on 20 April.
Though, the market likely won't learn the exact value of its upcoming dividend for another few days. The ETF typically provides that information on its record date, which falls on Tuesday.
Tuesday is also the last chance those invested in the ETF have to decide if they'll make use of its dividend reinvestment plan (DRP). The plan allows investors to receive their dividends in the form of new units, rather than cash.
That can help bolster their holding in the fund without forking out any extra cash or paying brokerage fees.
According to Vanguard, the Vanguard Australian Shares Index ETF currently offers a 4.4% dividend yield. Of course, it doesn't have much control over that.
The ETF aims to track the ASX 300. Thus, the dividends it pays out reflect those offered by its holdings.
Making up its three biggest holdings are market giants BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Limited (ASX: CSL), making up around 10.4%, 7.7%, and 6.5% of the fund respectively.
