[cehrlich]

For most major ETFs there are accumulating versions that automatically re-invest any dividends into the ETF. A good choice for the lazy investor IMO.

[lisper]

You still have to pay taxes on those dividends in the year they are paid.

[klipt]

In America, yes. The person you're replying to seems to live in Europe. I believe in many European countries there's no tax on accumulating ETFs that reinvest dividends, until you sell them and realize the capital gain.

In a way this erases the tax efficiency difference between dividends and buybacks.