Bond ETF Dividends

ffacoffipawb

Coming up to using all my personal savings allowance of £1k.

ISA fully maxed as well as all the other tax free stuff (Premium Bonds and Index Linked Savings Certificates).

Do bond ETFs pay dividends or interest as that could use up some of the remaining dividend allowance?

Thanks

tin586

Yes.

I hold VEMT (Vanguard USD Emerging Markets Government Bond ETF), which pays monthly dividends.
(For information only. No recommendation implied.)

londoninvestor

If it's a bond ETF, the distribution is treated as interest for tax purposes.

(Remember that there may also be Excess Reportable Income to deal with, and for a bond ETF that's also treated as interest.)