Hypothetical reinvestment scenario
Compare annual reinvestment with taking distributions as cash using a reviewed ETF’s displayed source-reported yield. The model holds yield and investment value constant, so it illustrates compounding rather than forecasting an ETF’s future balance.
Final Balance
$13,439
Total Dividends
$3,439
Reinvest Advantage
$439
What this tool calculates
Reinvested balance = initial amount × (1 + displayed yield ÷ 100)years. The cash scenario keeps the initial amount flat and adds initial amount × yield × years. “Reinvest advantage” is the difference between those two hypothetical balances.
Worked $10,000 example
At a constant 3.00% source-reported yield with annual reinvestment, $10,000 grows mathematically to about $13,439 after 10 years. That includes about $3,439 of modeled reinvested distributions.
The scenario assumes annual compounding, a constant yield, immediate reinvestment and no taxes, fees, trading costs or distribution changes. It does not model share-price or NAV movement. Actual distributions can be uneven, reduced or discontinued, and price losses can outweigh distributions.
This educational output is hypothetical, not a return forecast. Review the methodology and financial disclaimer, and confirm current issuer data.