{"id":496893,"date":"2023-07-28T12:00:03","date_gmt":"2023-07-28T11:00:03","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=496893"},"modified":"2026-02-10T07:41:04","modified_gmt":"2026-02-10T07:41:04","slug":"accumulating-vs-distributing-etfs","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/exchange-traded-funds-etfs\/accumulating-vs-distributing-etfs","title":{"rendered":"Accumulating vs distributing ETFs"},"content":{"rendered":"

Some exchange traded funds (ETFs) <\/a>generate income. However, different ETFs use this income in varying ways. Typically, there are two key strategies. <\/p>

The first will distribute the income and pay investors directly with cash, in the form of dividends<\/a> or interest. Others automatically reinvest the income into the ETF\u2019s underlying investments to accumulate. Here\u2019s what you need to know about accumulating vs distributing ETFs.<\/p>

What is the difference between accumulating ETFs and distributing ETFs?<\/h3>

Both types of ETF can generate income for investors, in the form of dividends or interest, with one key difference.<\/p>