Many ETFs are fond of distributing yield of the underlying securities (such as dividends or coupon payments) back to investors in the form of dividends. The downside is that income tax is payable on the dividends.
Is there a way to transform the dividend payments back into capital gains? One thing that comes to mind, but not sure whether this works, is to hold your investments in a company and the investor owns shares in that company. The company does not pay dividends but can buy back shares to release capital. Do there exist funds that already do something along these lines for the investors? Any ideas welcome, this is just something that came to mind but may not actually work.
Assume that I have maxed out my ISA.