Dividends Spy

Question: Do the returns of ETF’s such as SPY include the dividends the underlying stocks pay?

Would the return of SPY more closely mirror the performance of the S&P 500 or the S&P 500 Total Return?

Answer: I believe that when returns are reported they include the dividends paid as part of the returns. For example if the 5 year average annual return is reported at 12.2% that would also include the dividends paid during that time.

Peter Reznicek, Chief Equity Strategist at www.shadowtrader.net (NYSE: NKE) (NYSE: SPY)