Moneyfarm (ETF) and Coupons

Question

I am a beginner, I have possessed public debt bonds only, so far. Recently I decided to differentiate my savings on some form of ETF, specifically on Moneyfarm, just to give it a try.
Now, I am trying to understand if the coupons are paid and potentially how they are, in the case of ETF. In my specific case, I have been using Moneyfarm for some months now and I saw that in my ETF wallets there also are coupon bond. How they are usually paid if they are? Thanks.

D Stanley · Accepted Answer

The coupons from the bonds the ETF holds go into the cash balance of the ETF. From there, it's up to the terms of the ETF whether to pay dividends (which may or may not correspond to the coupons it has received) or to reinvest the coupons internally.

In other words, the coupons that the bonds held by the ETF pay are NOT distributed to you directly.

Moneyfarm (ETF) and Coupons

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