The US ETF SGOV pays dividends once a month from Feb. to Nov, then twice in December. Why? I'm reading it may be for tax reason. If that's correct, what's the tax reason?

From https://seekingalpha.com/symbol/SGOV/dividends/history:

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1 Answer 1


I can't see anything specific in their prospectus that indicates the reason, but with other funds, I often get a larger distribution in December for capital gains in addition to the quarterly distributions for dividends. Funds aren't required to distribute realized gains as they are received, so they may just gather all net gains and losses and distribute it annually.

So this fund possibly distributes interest monthly as it is received, and distributed capital gains only at the end of the year.

It's also possible that they don't distribute all interest received every month, and accumulate some until the end of the year.

If your holding is in a taxable account you should get some sort of tax statement that indicates whether the distribution was for income, short-term gains, or long-term gains so you can report is for tax purposes accordingly.

  • 2
    Isn't there no payment in January but two in December?
    – AKdemy
    Dec 23, 2023 at 20:47
  • @AKdemy Thanks, good point, I edited the question. Dec 24, 2023 at 12:29

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