May I check how does the compounding works for ETF? And is there a compounding effect for individual stock as well?

Yes it works for both. To put it in simpler math. If your stock/ETF in total is worth $1000 and it goes up 10% in a year, the portfolio is now worth $1100. You made a profit on $100.

But on the second year if the portfolio goes up 10% again, your profit now is 10% of $1100 which is $110 instead of $100 in the previous year.

This effect compounds irregardless of your investments, dividends/non-dividend products.

When re-invested the compounding effect occur.

Growth stock- never give dividend. So every cent they earn they reinvested back to their buisness.

Dividend stock- they have not much growth. So they give u $$$. U need to reinvest the dividend back urself

ETF contain a small percentage of all the stock.