Distribution Reinvestment Program
BMO ETF Distribution Reinvestment Plan (DRIP)
All cash distributions paid on BMO ETFs are eligible for reinvestment into additional Units of the fund through the Distribution Reinvestment Plan (DRIP).
The benefits of the DRIP include the ability to purchase units without paying commissions and can help decrease uninvested cash balances.
DRIPs may be a beneficial option for investors looking to increase their units of a Fund over time in a more cost effective manner by both minimizing commission costs and taking advantage of the benefits of dollar cost averaging.
The key facts regarding BMO ETF DRIP
- BMO ETF units for the DRIP will be purchased on the exchange through a purchasing agent.
- The reinvestment of the distributions will not relieve Unitholders of any income tax applicable to the underlying distributions.
- An investor must be a resident of Canada to participate in the DRIP for purposes of the Income Tax Act (Canada).
- A Unitholder will receive any Units purchased under the DRIP Plan on or about the 6th business day following the applicable distribution date.
- Units will be credited to each Unitholder's account in which the BMO ETFs are held.