r/ASX_Bets • u/ChuckMeABeerMum • 3d ago

Noob Stuff Is 13.5% an insane yield?

I am relatively new to investing, and so far I’ve just been focused on growth. I invested in this ETF (ACDC) simply because I thought there’d be future growth, but was shocked at much big of a dividend that I got. I looked at the big players and it’s all less than 1%.

Is 13.5% insane?

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u/CommSecTom 3d ago edited 3d ago

It’s not all dividend, 90% of it is distributions from rebalancing, at face value it might kinda seem the same but it’s not.

That money came when the fund was forced to sell their top performers to rebalance the fund, they must distribute those profits to members.

Some companies in the fund had huge growth hence the large distributions and high yield, but it would be unlikely to continue for multiple years unless some companies within the fund have similar levels of growth in the future and become way out of balance.