James Kirby

I have some questions on ETFs from our listeners where Daniel will come to the party, I'm sure, and find them awfully easy to answer.

OK.

Back in a moment.

Hello, welcome back to the Australian's Money Puzzle podcast.

James Kirby here with Daniel Shremsky.

He is the CEO of Vanguard, the ETF house index funds house Australia.

Coming to us this morning actually from the US where, of course, Vanguard is based in the US and they are a mutual of which I think most people don't realise it's not a company.

OK, now Trevor asks, regarding the popularity of ETFs, something I think is covered very lightly is the dealing of capital gains.

Apparently, ETFs have to distribute all their capital gains each year.

So a high income earner has little control on when to realise these gains.

Is this the case?

Is that the case that you have to do that each year, Daniel?

Is that how it works?

Okay.

So folks, that's what Daniel is talking about there is, you know, the ASX 200, it's not a set thing.

It gets reordered on a sort of episodic basis.

And they say, well, the 200 is changing.

These three or four are dropping out.

These three or four are coming in.

That happens all the time.