http://www.investingintelligently.com/2005/11/21/etfs-vs-index-mutual-funds/ Not just another (Canadian) financial blog Tue, 07 Sep 2010 17:42:22 +0000 http://wordpress.org/?v=abc http://www.investingintelligently.com/2005/11/21/etfs-vs-index-mutual-funds/#comment-10 Investing Intelligently » Blog Archive » DRIPs for iUnits ETFs Wed, 23 Nov 2005 07:47:38 +0000 http://www.investingintelligently.com/wordpress/?p=28#comment-10 [...] As a follow-up to my previous post where I quoted a site that said ETF distributions could only be paid out in cash, I just found out from a comment on the canadiancapitalist.com that it is possible to have distributions from iUnits ETFs re-invested through a DRIP: Dividend reinvestment plans let you take advantage of the power of compounding. Instead of receiving cash dividends from the company, you may purchase more of a company’s stock by having the dividends reinvested. Your brokerage firm may offer a dividend reinvestment plan that allows for the reinvestment of cash distributions on iUnits. Cash distributions, in the form of income, return of capital or dividends could then be reinvested in additional units of the same fund. You should check with your brokerage firm to see whether you will be charged for this service. [...] [...] As a follow-up to my previous post where I quoted a site that said ETF distributions could only be paid out in cash, I just found out from a comment on the canadiancapitalist.com that it is possible to have distributions from iUnits ETFs re-invested through a DRIP: Dividend reinvestment plans let you take advantage of the power of compounding. Instead of receiving cash dividends from the company, you may purchase more of a company’s stock by having the dividends reinvested. Your brokerage firm may offer a dividend reinvestment plan that allows for the reinvestment of cash distributions on iUnits. Cash distributions, in the form of income, return of capital or dividends could then be reinvested in additional units of the same fund. You should check with your brokerage firm to see whether you will be charged for this service. [...]

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