Dividends
An ETF or fund share class that pays income such as dividends and interest out to investors regularly, instead of reinvesting it automatically. The counterpart to accumulating (thesaurierend).
Distributing funds and ETFs pay the income they collect, such as dividends and interest, out to investors at fixed intervals, usually quarterly, semi-annually or annually. The counterpart is the accumulating variant, which reinvests income automatically.
Distributions arrive as cash in the settlement account and can make ongoing use of the Sparerpauschbetrag (saver's tax-free allowance). Anyone who wants the full benefit of compounding, however, has to reinvest the amounts themselves.
Over the long term the two variants are broadly comparable for the same index. The choice is mainly a question of tax planning, desired cash flow and convenience.
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