Do ETFs pay interest?

ETFs themselves don't "pay interest" like a bank account, but bond ETFs hold interest-paying bonds and typically distribute that interest income to shareholders.

Equity ETFs hold stocks, so their cash distributions are usually dividends, not interest. Mixed-asset ETFs may distribute a blend depending on what they hold.

If you're choosing a bond ETF for income, look at yield, duration, and credit quality. The yield tells you about income potential, while duration and credit quality tell you how sensitive the ETF may be to rate changes and credit stress.