INXG Distributions

masonic

I thought it would be worth flagging an interesting feature of this Index Linked Gilt ETF originally noted by @Alexland, which seems to be "distributing" an excessive amount of interest.

Most ILG have very low coupons, so a 12 month trailing yield of 7.15% is way above what you'd expect such a fund to distribute. It is tracking the BBG UK Government Inflation-Linked Bond Index. The last two distributions were 39p and 43p against a price of about £11.

If you compare this to an alternative ILG ETF like GILI, its last two distributions were 86p and 92p against a price of about £125, so trailing yield of about 1.3%.

A price-based chart shows INXG started losing relative capital value from around 2024 (excuse the late 2021 weirdness):

While it's potentially a good thing to get an accelerated return of capital in some situations, it might not be so tax efficient if one has to declare this as taxable interest income.

Thoughts?

masonic

Soz, this autobumped, replying so people can mark as read.