The goal of index fund is to track the index strictly. After paying dividends, the stock price will change and the index will be recalculated. So generally speaking, index ETFs do not consider dividends by default. The dividends of index funds come from the dividends of the constituent stocks they invest in. The cash dividends of index constituent stocks are large, and the index ETF has capital dividends. When the ETF does not pay dividends all the time, the proceeds from stock dividends will be included in the fund's net value.