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Do commingled pool funds pay dividends or capital gains? |
I have a 401k, and most of the investments within it are commingled pools of money managed by Barclays Global Investors. For example, we have an option to invest in a S&P 500 index 'fund' - but in the details of the fund it says nothing about dividends or capital gains. I have owned that particular fund for a year now and my statements do not show any dividends or capital gains. Does anyone understand how dividends/capital gains work in a 'commingled pool' index fund? Does my 'fund' (referring to the S&P 500 index commingled pool) pay them, but just put the money back into the fund by adding that value to the NAV? Or do we actually not get any dividends or capital gains? Other index funds pay them and declare them - but those are mutual funds and this fund is a 'commingled pool' of investments. It has no ticker symbol and no fund ID - but says it is managed by Barclays Global Investors. This 401k is through a very big fortune 500 firm, so I think it is legit. Almost 100% of the time, any dividends on funds in a 401K are directly reinvested into the fund. The way dividends are distributed is based on the total dividends received by the fund managers from all the components of the fund, and then equally distributed to investors in a per share amount. Since this is a 401K, you may never this this as anything other than the number of shares you own in the fund going up. As far as capital gains goes, you probably won't see any since index funds very rarely sell any of their shares. You also wouldn't see any capital gains being reported to you if there are any because the only reason you would need to know is for tax purposes and a 401K allows for tax free growth until you start pulling the money out. |
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