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ETF fractional shares can also receive dividends. Isn't it amazing? As long as you hold them before the ex-dividend date, no matter how many shares you have, you can receive money proportionally.
For example. A certain ETF distributes 2 dollars per share. You have 100 fractional shares. That means 200 dollars in your pocket. Directly into your securities account. It's that simple.
However, the dividend from fractional shares may not be much. After all, the number of shares held is small. But hey, having some extra income is good too.
Some ETFs are quite special. They do not distribute cash but reinvest the money instead. Shareholders of fractional shares can also benefit. When the net asset value of the fund rises, you earn as well.
In summary, ETF fractional shares are quite interesting. The threshold is low, and the rights are complete. Those looking to invest small amounts might consider it. It seems to be a good choice.