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== Introduction ==
 
== Introduction ==
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Under US fund regulations, a US domiciled mutual fund or ETF ([https://en.wikipedia.org/wiki/Exchange-traded_fund exchange-traded fund]) must distribute at least 90% of its income to shareholders<ref>Investopedia, [Regulated Investment Company (RIC) https://www.investopedia.com/terms/r/ric.asp], retrieved 8 May 2019.</ref>.
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Under US fund regulations, a US domiciled mutual fund or ETF ([https://en.wikipedia.org/wiki/Exchange-traded_fund exchange-traded fund]) must distribute at least 90% of its income to shareholders<ref>Investopedia, [https://www.investopedia.com/terms/r/ric.asp Regulated Investment Company (RIC)], retrieved 8 May 2019.</ref>.
    
Non-US domiciled funds and ETFs do not have the same restriction. This allows them to create different classes of ETF shares. Those that pay dividends periodically to investors are known as ''distributing'' ETFs. Others can elect to retain the income from the assets they hold, and use it to invest in more of those assets automatically within the ETF itself. These are known as ''accumulating'' ETFs.
 
Non-US domiciled funds and ETFs do not have the same restriction. This allows them to create different classes of ETF shares. Those that pay dividends periodically to investors are known as ''distributing'' ETFs. Others can elect to retain the income from the assets they hold, and use it to invest in more of those assets automatically within the ETF itself. These are known as ''accumulating'' ETFs.

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