I'm doing some research as I prepare myself to start my long-term(25-30 years) investment journey. I'm taking notes covering basic terms, fund info (holdings, volatility etc) and preparing my investment portfolio. The linked investopedia page (see below) mentions that it's a good strategy to combine Value and Growth ETFs.
This article on investopedia covers the Value ETF vs Growth ETF comparison. I'm able to understand that Value ETFs are providing dividends which means periodic returns. So far so good.
In the case of Growth ETFs though, you can only make money from it if the price grows and you sell at a higher price than you acquired. Is that a correct statement? Is there any other way to generate income from Growth ETF funds?
The part of the link that I'm specifically referring to is this:
If you're seeking a regular income from a growth ETF, you're more likely to be disappointed. Many growth-oriented companies reinvest available cash back into growing the business instead of paying profits out to shareholders directly. Many of these companies pay little, if anything, in regular dividends.
So if there are no dividends for a given Growth ETF fund how else can income be generated?