I know this is very basic but I have had a shocking amount of conversations lately with people (retail and pro) that seem to forget ETFs pay out income and dividends. This matters more and more the larger the yield, but below is one of the older dividend ETFs, and the difference in returns is 23% vs. 67%! While it may look like the price is flat for the blue line, you have to include the dividends!
Total Returns for ETFs
March 13th, 2013 by Mebane Faber