How i enter a reinvested dividend with no share? ex BMO DIS BND INDX T/U ETF

michrobe
michrobe Member
BMO DIS BND INDX T/U ETF

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited August 2021
    I'm guessing this has something to do with the BMO Discount Bond Index ETF but beyond that I don't understand the question.  More details please.
  • michrobe
    michrobe Member
    I m not permitted to enter a zero share and the fund do not augment the number of the shares.
  • Mark1104
    Mark1104 Member ✭✭✭✭
    something doesn't make sense

    if the ETF declared a dividend, and you choose to reinvest it, are you stating the ETF doesn't change the number of shares you have???? that doesn't make sense.

    please reconfirm; and if that is corret, how do you get the benefit of the dividend on a reinvestment as the price would normally fall by the same amount as the dividend.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    So then how is it a "reinvested dividend?"  As far as I can see the BMO ETFs do make cash distributions and apparently reinvestment of dividends is allowed in the "usual fashion" of more units of the ETF (Emphasis added::
    ----------------------------------------------------------------
    BMO ETFs
    Distribution Reinvestment
    Plan
    1. Introduction

    This Distribution Reinvestment Plan has been created by each of the BMO ETFs to provide
    Unitholders with a method of reinvesting cash distributions payable to them in additional Units
    of the same BMO ETF.

    Distributions on Units will be reinvested on behalf of Plan Participants by the Plan Agent, on the
    terms and conditions contained in the Plan.
    ----------------------------------------------------------------
    If you're not getting additional units then what's actually happening that you've somehow invested "more money" in the ETF?
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