Index funds (no dividends) compound interest?

[genkidesu]

Many financial books demonstrated the power of compound interest and how the US stock market index average 8-10% interest annually.
I'm now looking to put this into practice but puzzled how it'll actually work for ETFs with no dividends.

For example, I am looking into eMAXIS Slim funds that many people recommended in this forum (e.g. ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式) but found there's no dividend yield (分配金)?
Without dividend reinvested, the number of units you hold is the same, and the return you'd be looking at is really how much the units have appreciated/increased in say 10 years.

Am I getting this wrong? Any other low-fee index/ETF I should be considering to really simulate compound interest?

[Kanto]

Many financial books demonstrated the power of compound interest and how the US stock market index average 8-10% interest annually.
I'm now looking to put this into practice but puzzled how it'll actually work for ETFs with no dividends.

For example, I am looking into eMAXIS Slim funds that many people recommended in this forum (e.g. ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式) but found there's no dividend yield (分配金)?
Without dividend reinvested, the number of units you hold is the same, and the return you'd be looking at is really how much the units have appreciated/increased in say 10 years.

Am I getting this wrong? Any other low-fee index/ETF I should be considering to really simulate compound interest?

Dividends are reinvested in most Japanese mutual funds automatically for tax-efficiency.

Due to this, the yields may only be listed for funds that do not do this.

[fools_gold]

Without dividend reinvested, the number of units you hold is the same, and the return you'd be looking at is really how much the units have appreciated/increased in say 10 years.

Am I getting this wrong? Any other low-fee index/ETF I should be considering to really simulate compound interest?

Sounds right to me. If you buy into a dividend paying fund and reinvest the dividends then you'll get more units. However, funds like eMaxis Slim track total return indices. They're calculated by assuming that dividends are reinvested into the index as soon as they are received. So, the number of units held would be the same, but the unit price would be greater than for a dividend paying fund.

As far as I know Japanese and US ETFs pay out dividends, but most low cost index funds like Nissei, Tawara no load, and eMaxis Slim track total return indices. Look for the magic words 「...インデックス（配当込み）」 in the brochure.