Each Vanguard ETF pays distributions in accordance with the distribution policy disclosed in the ETF’s prospectus. Cash distribution will be paid on a monthly, quarterly or annual basis, depending upon the particular Vanguard ETF. Cash distributions are expected to consist of primarily of income, but may, at the manager’s discretion, include capital gains and/or return of capital.
Capital gains are usually distributed at year-end. The amounts will be re-invested and the resulting units immediately consolidated, so that the number of units held by each investor will not change.
