Why it's a big day for ASX ETFs
A smiling woman with a satisfied look on her face lies on a rug in her home with her laptop open and a large cup on the floor nearby, gazing at the screen. researching new ETFs
At first glance, this Monday looks like a fairly ordinary one for ASX shares. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has retreated by 0.32% in a lacklustre start to the 2025 financial year. But let's discuss why today is actually a pretty big day on the share market, thanks to dozens of ASX exchange-traded funds (ETFs).
ASX ETFs are more sensitive than most ASX shares to the financial calendar. Most of these funds pay out dividend distributions every quarter rather than the six-month interval that is normally the standard for ASX shares. These quarterly dividend distributions are typically aligned with the four quarters of the financial year.
As it happens, today is the first day of the 2025 financial year. And as such, we've heard from dozens of ASX ETFs today regarding their next dividend distribution. Many are also trading ex-dividend for said distributions this Monday.
Take the iShares S&P 500 ETF (ASX: IVV). Earlier this afternoon, we discussed the IVV ETF and its latest quarterly dividend distribution, which has just been announced. Investors in this index fund will enjoy a distribution next week on 11 July.
Today, we learned that this dividend distribution would be worth 14.06 cents per unit. However, just as investors were treated to this knowledge, the ETF traded ex-dividend. That's why we are seeing a big dip in the IVV unit price this Monday (currently down 1.34%).
It's not just the iShares S&P 500 ETF. Most iShares ETFs are following IVV's lead today. That includes everything from the iShares Core S&P/ASX 200 ETF (ASX: IOZ) and the iShares MSCI South Korea ETF (ASX: IKO) to the iShares Global Consumer Staples ETF (ASX: IXI) and the iShares Government Inflation ETF (ASX: ILB).
A big day for ASX ETFs
All of these exchange-traded funds just traded ex-dividend and will pay their next distributions on 11 July.
But it's not just iShares ETFs that are going through this process right now. Last Friday, we discussed the latest monster dividend from the VanEck Morningstar Wide Moat ETF (ASX: MOAT). Well, MOAT units have also traded ex-dividend for this monster payment today, joining almost all ETFs from VanEck.
In addition to MOAT, today is the day that the VanEck Global Clean Energy ETF (ASX: CLNE), the VanEck China New Economy ETF (ASX: CNEW), the VanEck Gold Miners ETF (ASX: GDX) and the VanEck Australian Equal Weight ETF (ASX: MVW), amongst others, have traded ex-dividend. These ETFs will all pay out their respective distributions on 23 July, later this month.
It's a similar story for Vanguard ETFs. Vanguard is the provider responsible for many of the ASX's most popular ETFs.
Today has seen the likes of the Vanguard Australian Shares Index ETF (ASX: VAS), the Vanguard MSCI Index International Shares ETF (ASX: VGS), the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the Vanguard Diversified High Growth Index ETF (ASX: VDHG) trade ex-dividend. These funds, as well as most Vanguard ETFs, will pay out their latest dividends on 16 July this month.
So all in all, this Monday is a huge day for ASX exchange-traded funds. If you own one, chances are you've got a paycheque with your name on it in the mail as we speak.
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Motley Fool contributor Sebastian Bowen has positions in VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares Index ETF, and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.