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Can someone please explain how dividend given by constituent companies finally comes to investors of ETF? I have both CPSE and Bharat 22 ETF and never received any communication on dividend. I don't think any additional units were ever allocated in lieu of dividend.

Thanks for replying. As given in above article, dividend yield is 5.52%. And administration cost is negligible. I don't think it makes any sense that dividend received on units held by me is used to pay for redemptions of others (ultimately I hold shares of constituent companies via the ETF). ETF can sell shares in open market for the redemptions (net of purchase and selling of units).

Dividends drive an increase in the NAV of the ETF.