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Do index funds pay dividends?


Does vanguard 500index fund pay dividends, how about Wilshire 500 index fund?

DoesVanguard500 Index Fund pay dividends ? How about Wilshire 5000 Index Fund?

Yes both of the funds will pay dividends from the stocks that pay dividends and are in the underlying indexs.

The most recent yield for the vangard 500 index fund can be found here.

No

Largely depends on the Index.
An index fund is nothing more than a fund that is a collection of company collected to be used as a barometer to measure the overall market/sectors performance.
If you are in a Large Cap Index Fund, than the fund is invested in Large Cap stocks; who usually issue dividends. Therefore, you would be entitled to the portion of dividends issued under that Index Fund by the companies therein, relative to the size of your investment.
The Index Fund ITSELF, does not issue a dividend. It is merely a dividend distribution steming from the companies listed in the Index Fund.
So the Russell 2000 would likely not issue a dividend, as this is a small cap Index, and small cap companies traditionally do not issue dividends, as they use this money to reinvest for the company's growth.

Hope this helped.

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