Recently there was a post here about the latest dividends from VXUS, and the discussion explained how when dividends are given, the stock loses value, but you get it as a dividend, so overall you are left with the same value amount.
That being said, you are forced to pay taxes on these dividends..
If this is the case (unless I'm terribly misunderstanding things), how exactly does the compounded interest work here?
Is it there fact that I'm reinvesting thus buying more stock with the dividends? I'm having trouble understanding why doing that causes compounding vs not having the ETF give out dividends.