Owners of various Vanguard ASX-listed exchange-traded funds (ETFs) will be going ex-dividend soon.
When an ASX share goes ex-dividend, or ex-distribution in this case, it means that new investors will no longer be entitled to the upcoming dividend or distribution.
Investors who want to be entitled to that upcoming passive income payment need to make sure they own units of the ASX ETFs before that ex-dividend date.
For example, if the ex-distribution date was Wednesday, 4 October 2023 then investors would need to ensure they are invested by the end of trading on 3 October 2023.
Image source: Getty Images
Which ASX ETFs are going ex-dividend next week?
A large number of Vanguard ETFs are going ex-dividend on 2 October 2023, which is next Monday. That means that today is the last day to invest to gain entitlement to the distribution. The payment is due to arrive in bank accounts on 17 October 2023.
ETFs simply pass-through income that they receive from their underlying investments, so if it has holdings that have large dividend yields, the ETF will have a relatively high dividend yield as well.
Some of the biggest ETFs will soon be allocating their payments, including these three:
Vanguard Australian Shares Index ETF (ASX: VAS)
This ETF is all about giving investors exposure to the S&P/ASX 300 Index (ASX: XKO), which involves many ASX-listed blue chips, such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL).
It's currently estimated to distribute a payment of $1.29 per share to investors.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
This ASX ETF aims to give investors exposure to a portfolio of international shares from the global stock market from a variety of countries. Examples of holdings include Apple, Amazon.com, Alphabet (Google) and Microsoft. It has well over 1,000 positions in the portfolio.
It's currently estimated to pay a distribution per unit of 67.32 cents to investors.
Vanguard Diversified High Growth Index ETF (ASX: VDHG)
This ASX ETF is invested in a variety of funds, so it's a fund of funds that provides diversification across ASX shares, global shares, global small-cap shares, emerging markets shares, global bonds and Australian bonds.
It's estimated that the upcoming distribution will be 45.49 cents per unit.
