Betashares Ethical Diversified High Growth ETF Announces Estimated Annual Distribution Breakdown

Anjali Anand

08 July 2026 03:45 PM AEST

Betashares Ethical Diversified High Growth ETF Announces Estimated Annual Distribution Breakdown

Image Source: Krish Capital Pty Ltd

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Betashares Capital Ltd has released the estimated annual distribution component breakdown for its Ethical Diversified High Growth ETF (DZZF) for the financial year ending 30 June 2026. This announcement provides investors with detailed insights into the composition of the fund's distributions, highlighting various income and capital gains components. Investors may find this information crucial for tax planning and investment strategy adjustments.

Key Points

Betashares Ethical Diversified High Growth ETF (ASX: DZZF)
Estimated annual distribution breakdown for FY 2025-2026
Includes Australian and foreign income, capital gains, and tax offsets
Investors should monitor the final AMMA statement for precise tax information

Detailed Breakdown of Australian Income Components

The Betashares Ethical Diversified High Growth ETF has provided a comprehensive breakdown of its estimated Australian income components for the financial year ending 30 June 2026. The distribution includes interest income subject to non-resident withholding tax at 1.0826% and interest not subject to such tax at 4.5351%. Additionally, other income contributes 8.5044%, with minor components such as NCMI and excluded NCMI income adding small percentages.

Dividends form a significant portion of the distribution, with franked dividends at 19.2530% and unfranked dividends at 0.9798%. A notable component is the unfranked amount declared to be CFI, which stands at 5.6847%. The clean building MIT income is relatively minor at 0.0659%. These components are crucial for investors to understand the fund's income sources and potential tax implications.

Foreign Income and Capital Gains Insights

The foreign income component of the Betashares Ethical Diversified High Growth ETF's distribution is substantial, with foreign sourced income accounting for 27.5344%. Notably, there is no anti-roll-up or CFC income reported, which may interest investors monitoring international tax obligations. The capital gains from taxable Australian property are relatively minor, with discounted capital gains at 1.0340%.

In contrast, capital gains from non-taxable Australian property are significant, with discounted gains reaching 65.8726%. This distribution component underscores the fund's exposure to non-taxable property assets, which could impact investors' tax planning and overall portfolio strategy.

Tax Offsets and Non-Assessable Amounts

The estimated distribution includes various tax offsets, which are essential for investors seeking to optimize their tax liabilities. Franking credits are a notable component at 9.4859%, with additional Australian franking credits from a New Zealand franking company at 0.1115%. The foreign income tax offset contributes 5.2984%, providing potential tax relief for investors with foreign income exposure.

Non-assessable amounts, such as tax-exempt and tax-free income, are reported at 0.0000%, indicating no contributions from these categories. The AMIT CGT gross-up amount is significant at 66.9066%, reflecting adjustments related to the fund's capital gains tax obligations. Investors should consider these offsets and non-assessable amounts when evaluating their tax positions.

AMIT Adjustments and Non-Cash Components

The Betashares Ethical Diversified High Growth ETF's estimated distribution includes adjustments related to the Attribution Managed Investment Trust (AMIT) regime. The AMIT cost base decrease is reported at 0.0000%, while the cost base increase is significant at -101.4996%. These adjustments are crucial for investors to understand potential changes in their investment's cost base.

Non-cash components, such as franking credits and foreign income tax offsets, are included in the distribution breakdown. Franking credits are reported as -9.4859%, and the foreign income tax offset is -5.2984%. These non-cash components may impact investors' tax calculations and overall distribution yields.

Estimated Cash Distribution and Fund Payment Notice

The estimated cash distribution for the Betashares Ethical Diversified High Growth ETF is reported at 100.0000%. This figure represents the total cash amount distributed to investors, excluding non-cash components and adjustments. The fund payment notice, issued under Subdivision 12-H of the Taxation Administration Act 1953, provides additional information on non-resident withholding tax components.

Investors should refer to the fund's "Resources" section on the Betashares website for detailed information on the fund payment notice and related tax obligations. This notice is essential for non-resident investors to understand their withholding tax liabilities and compliance requirements.

Importance of the AMMA Statement for Investors

The Attribution Managed Investment Trust member annual (AMMA) statement is a critical document for investors in the Betashares Ethical Diversified High Growth ETF. This statement will provide the final component information for tax purposes, superseding the estimated breakdown announced. Investors should anticipate the issuance of the AMMA statement to ensure accurate tax reporting and compliance.

The AMMA statement will detail the precise income and capital gains components attributed to unitholders, along with any necessary cost base adjustments. Investors are encouraged to consult this statement in conjunction with professional tax advice to optimize their tax positions and investment strategies.

Understanding the Fund's Investment Strategy and Risks

The Betashares Ethical Diversified High Growth ETF is designed to offer investors exposure to a diversified portfolio of high-growth assets with an ethical investment focus. The fund's strategy includes selecting investments that meet specific ethical criteria, which may appeal to socially conscious investors seeking to align their portfolios with their values.

However, investors should be aware of the inherent risks associated with this investment strategy. Market volatility, changes in ethical investment criteria, and shifts in economic conditions could impact the fund's performance. As with any investment, there is a risk of loss, and investors should carefully consider their risk tolerance and investment objectives before investing in the fund.

Next Steps for Betashares and Its Investors

Following the release of the estimated annual distribution breakdown, Betashares and its investors will focus on the issuance of the final AMMA statement. This document will provide definitive tax information, enabling investors to finalize their tax reporting for the financial year. Betashares will continue to manage the fund in alignment with its ethical investment strategy, seeking opportunities for growth while adhering to its investment criteria.

Investors should remain informed about any further updates from Betashares regarding the fund's performance, distribution policies, and investment strategy. Monitoring these developments will be crucial for investors to make informed decisions and adjust their portfolios as needed.

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