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Does NASDAQ-100 Index Tracking Stock pay dividends or capital gains?

April 26, 2017capital gains dividends index nasdaq-100 pay stock

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Does NASDAQ-100 Index Tracking Stock pay dividends or capital gains?

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NASDAQ-100 Index Tracking Stock may make annual capital gains distributions. However, NASDAQ-100 Index Tracking Stock is not expected to pay quarterly dividends because the dividend yield of the NASDAQ-100 Index portfolio is characteristically lower than the expected expenses of the Trust. So, after expenses, there is no expected net dividend to be distributed. In the future, if the dividend yield of the NASDAQ-100 Index portfolio were to increase above the expenses of the Trust by more than .05% in any quarter, then a net dividend distribution to shareholders would be made at that time.