The AI spits this out:
1. LDGL does not pay dividends from the fund’s assets
LDGL (L&G Global Quality Dividend Low Volatility) is a distributing equity ETF that collects and passes on dividends from the companies in its portfolio.
This means:
Dividends come from the companies, not from the ETF’s capital.
The ETF does not sell shares to finance distributions.
There is no dilution of net assets due to the distribution.
This would only be the case with synthetic, non-income-generating products (e.g., covered call ETFs such as QYLD, XYLU), but not with LDGL.
2. Why the cost basis decreases with some brokers
The misunderstanding stems from the way it’s presented:
Trade Republic, Scalable, and others
They often include dividends as “return” in the performance calculation.
This makes it appear as though the cost basis is decreasing.
In reality, the cost basis remains unchanged, but the total return increases.
Parqet / getquin
Show dividends separately → the cost basis remains unchanged.
No broker adjusts the cost basis downward, except in the case of:
Tax partial exemptions (not relevant here)
Capital returns (LDGL has none)
Stock splits (did not occur)
3. LDGL has not reported any capital returns
I checked the most recent distributions:
All payments are classified as “Dividend”
Not a single one is classified as “Capital Return” or “Return of Capital”
The NAV history shows no discount that would indicate a withdrawal of net assets
If an ETF were to distribute from capital, you would see:
The NAV falls more sharply than the dividend
The distribution is reported as “ROC”
The TER often rises because synthetic structures are more expensive
With LDGL: none of this is present.
4. Why some users confuse the two
Many are only familiar with covered-call ETFs (QYLD, XYLD, XYLU, QDIV, etc.):
These often pay out more than they receive in dividends
The distribution then comes from sold options or net asset value
In this case, the NAV declines over the long term → “dividend from capital”
LDGL is the opposite:
Quality stocks
Dividend strategy
Distributions from corporate profits
NAV remains stable or rises
5. Conclusion for You
No — LDGL does not pay out of capital.
No — the cost basis is not adjusted.
Yes — the dividend is clean and sustainable.
1. LDGL does not pay dividends from the fund’s assets
LDGL (L&G Global Quality Dividend Low Volatility) is a distributing equity ETF that collects and passes on dividends from the companies in its portfolio.
This means:
Dividends come from the companies, not from the ETF’s capital.
The ETF does not sell shares to finance distributions.
There is no dilution of net assets due to the distribution.
This would only be the case with synthetic, non-income-generating products (e.g., covered call ETFs such as QYLD, XYLU), but not with LDGL.
2. Why the cost basis decreases with some brokers
The misunderstanding stems from the way it’s presented:
Trade Republic, Scalable, and others
They often include dividends as “return” in the performance calculation.
This makes it appear as though the cost basis is decreasing.
In reality, the cost basis remains unchanged, but the total return increases.
Parqet / getquin
Show dividends separately → the cost basis remains unchanged.
No broker adjusts the cost basis downward, except in the case of:
Tax partial exemptions (not relevant here)
Capital returns (LDGL has none)
Stock splits (did not occur)
3. LDGL has not reported any capital returns
I checked the most recent distributions:
All payments are classified as “Dividend”
Not a single one is classified as “Capital Return” or “Return of Capital”
The NAV history shows no discount that would indicate a withdrawal of net assets
If an ETF were to distribute from capital, you would see:
The NAV falls more sharply than the dividend
The distribution is reported as “ROC”
The TER often rises because synthetic structures are more expensive
With LDGL: none of this is present.
4. Why some users confuse the two
Many are only familiar with covered-call ETFs (QYLD, XYLD, XYLU, QDIV, etc.):
These often pay out more than they receive in dividends
The distribution then comes from sold options or net asset value
In this case, the NAV declines over the long term → “dividend from capital”
LDGL is the opposite:
Quality stocks
Dividend strategy
Distributions from corporate profits
NAV remains stable or rises
5. Conclusion for You
No — LDGL does not pay out of capital.
No — the cost basis is not adjusted.
Yes — the dividend is clean and sustainable.
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@Trial_and_Error
It's explained in this video:
https://youtube.com/shorts/KdAKJQLEWeg?is=QSS5eXBYVolrxevb
It's explained in this video:
https://youtube.com/shorts/KdAKJQLEWeg?is=QSS5eXBYVolrxevb
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@Trial_and_Error It would be great if you could keep an eye on this for us. In fact, the rule regarding the dividend policy has been changed to allow dividends to be paid out of capital. Extraordinary General Meeting on August 12; the rule takes effect in September
https://cdn.discordapp.com/attachments/1214289908022124555/1541743542110785586/image.png?ex=6a97ee90&is=6a969d10&hm=9e1fab7a5e5373a0202c22e84933814c1317e4e8f9086d20b2234c3cc3d1d4bb&
https://cdn.discordapp.com/attachments/1214289908022124555/1541743542110785586/image.png?ex=6a97ee90&is=6a969d10&hm=9e1fab7a5e5373a0202c22e84933814c1317e4e8f9086d20b2234c3cc3d1d4bb&
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@Fetzen Are you sure this refers to this fund and not to another one from L&G? As far as I know, LDGL was set up with this rule from the start, and now other ETFs are supposed to follow suit.
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@schade Oh, maybe that was from a conversation about the EM version when it switched from quarterly to monthly—yup
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