TIL that there are ETFs that use dividends paid by the under...

TIL that there are ETFs that use dividends paid by the underlying stocks to purchase more stock instead of paying them to fund holders. You still end up with the same number of shares in the ETF, but the ETF in turn increases the number of shares held in the underlying stocks. An example is Blackrock's IUES, which holds US energy companies ( $Exxon Mobil(XOM.US)$ , $Chevron(CVX.US)$ , etc.). I was surprised when I saw it paid no dividend until I figured out this is what's happening.
Since there are no dividend payments, does this mean that there will be no withholding taxes taken by the US? If so, it strikes me that all holdings in a TFSA that would otherwise trigger WH tax should be of the accumulating type? Am I missing something?