# How ETFs actually work: Capital growth, dividends & risk explained [2/5]

Page: https://stenobird.com/podcast/australian-finance-podcast-1163565/how-etfs-actually-work-capital-growth-dividends-risk-explained-2-5
Text version: https://stenobird.com/podcast/australian-finance-podcast-1163565/how-etfs-actually-work-capital-growth-dividends-risk-explained-2-5.md
Podcast: [Australian Finance Podcast](https://stenobird.com/podcast/australian-finance-podcast-1163565)
Published: 2026-05-14T00:00:00+00:00
Episode link: https://www.raskmedia.com.au/podcasts/australian-finance-podcast/
Audio file: https://traffic.megaphone.fm/RRKKR5119596336.mp3?updated=1778542898
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JSON: https://stenobird.com/v1/public/podcasts/australian-finance-podcast-1163565/episodes/how-etfs-actually-work-capital-growth-dividends-risk-explained-2-5
Duration seconds: 2120

## Resource

In this Australian Finance Podcast episode, your hosts Owen Rask and Gemma Mitchell continue the ETF mini-series with a deeper dive into how ETFs actually work. After covering the basics in episode one, this episode focuses on building your confidence by explaining how you make money from ETFs, what’s happening behind the scenes, and how to think about risk. They cover: - How ETFs generate returns through capital growth and distributions - What’s inside an ETF and how index tracking works - The difference between passive and thematic investing - How to assess risk and choose the right ETF for you If you like this Australian Finance Podcast episode on ETFs, you'll love our series. Don't forget to subscribe for weekly shows on Apple, Spotify, YouTube, or wherever you get your podcasts! Follow us on Instagram and TikTok for more investing insights. Topics Covered - Recap: What is an ETF? - How you make money from ETFs: - Capital growth - Dividends (distributions) - Who makes money: fund managers & fees explained - What is an ETF “risk profile”? - Understanding risk levels: - What’s inside an ETF (holdings explained) - What is an index? (ASX 200, S&P 500 examples) - How index tracking works - What is passive investing? What is thematic investing? - Ethical ETFs explained - How to read ETF names & tickers - Beginner mistakes to avoid: - Thinking you must pick individual stocks inside ETFs - Misunderstanding daily price movements - Long-term mindset when investing in ETFs Resources for this episode - Download the ETF mini series checklist here - Buy Gemma’s book “The Money Reset” - Ask a question (select the Finance podcast) Show partner resources - Join Pearler using code “RASK” for $15 of Pearler Credit - Get 50% off your first two months using PocketSmith - View Betas…

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## Transcript

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