An ETF that pays income has three dates.
On the ex-date, shares start trading without the next payment.
On the record date, the fund lists who is owed. On the pay date, the cash arrives.
Since May 28, 2024, the ex-date is generally the record date, under FINRA’s rules for one-day settlement.
Who gets paid
Buy before the ex-date and you receive the payment.
Buy on or after it and the seller does.
Sell on the ex-date and you still receive it.
Why the price drops
On the ex-date, the fund’s net asset value (NAV) falls by about the payment.
The market price usually falls with it.
Buying just before an ex-date does not add value. You swap share value for cash, which may be taxed.
Weekly payers
67 of the 151 weekly payers publish a 30-day spread. Their median was 0.27% to Oct 22, 2026.
A buy pays the ask and a sell receives the bid, as on any day.
The fair limit is midpoint + X¢ to buy, midpoint − X¢ to sell.
X is half the fund’s typical spread in cents, rounded up, and never less than 1¢.